Credit scores are confusing numbers. Generally, people assume they have this magic number (their credit score) that determines their eligibility for getting loans, acquiring housing, etc. While there is some very marginal truth to that, your credit score is made up of more than one number. And those numbers are made up by multiple data sources and contain many different variables. Your credit score can change month by month, and sometimes those changes can even be drastic.

Credit Bureaus

There are 3 main credit bureaus: Equifax, Experian, and TransUnion. They collect information about you and how you’ve managed your credit. That information is used to create your credit score reports. Your score is based on those reports.

In order to get this data about you, your creditors, debt collectors, and credit applications report information about you to the bureaus. But creditors are not required to report to all three bureaus (or any at all, for that matter). This is why your scores can be different from each bureau.

Types of Credit Scores

There are several types of credit scores available, but the two most common are VantageScore and FICO. VantageScore was created by the three credit bureaus together as a competitor to the FICO score. Both can offer creditors different information from one another. Creditors can also choose from different FICO and VantageScore scoring models to review your credit score.

Scoring models give different levels of importance to items in your credit reports. Some models give more importance to certain factors such as auto payments, or mortgage payments. Again, this is why your score can look different from one model to the next.

Most Important Factors to Obtain and Maintain a High Score

If you are after a high credit score, there are some big-ticket items you can control. Payment history and credit utilization make up more than half of your score, so it is very important to pay close attention to them.

Payment history is the most important factor across the board when it comes to your credit score. Make your payments on time, all the time. Good practices are to set up automatic payments for as many of your bills as you can or set up payment reminders. Sometimes creditors can move your due dates to better times of the month for you, take advantage of that!

Credit utilization is the second most influential factor in your credit score. This is the amount of your available credit that you use. For example, say you have just one credit card with a $10,000 limit and you never carry a balance. Good right? Actually, it’s better for your credit to USE it! Use your credit card, then pay it off. However, keep your balances below 30% of what you have available (with a $10,000 limit you would want to keep your balance below $3,000).

Other factors include length of credit, your credit mix, how long it’s been since you’ve applied for new credit, and your total balances and debt. Longer credit is healthy for your score, so keep older accounts open unless you really need to close them. Variety of credit is also healthy for your score, a mix of mortgage, auto, and credit card accounts (that you pay on time!) would be a great combination.  Finally, too many inquiries (shopping for credit) can have a negative impact on your credit score.  A good rule of thumb is to only look for credit when you need it and try to limit these inquiries to 2-3 times a year.

Things That DO NOT Affect Your Score:

• Checking your own score, once per year. You can go to annualcreditreport.com and obtain a credit report free once per year.
• Rent and utility payments (unless you use a rent-reporting service to boost your score OR if you are LATE on a utility payment).
• Your income and bank balances.

Take a look at your current credit situation. Sometimes debt consolidation is a good start to get your finances back on track. If you’re curious about a debt consolidation loan, start by visiting Loans, or give us a call at 877-672-2848!

Happy Independence!

We all know July as our month to celebrate America’s independence from Great Britain. But did you know that most signers did not sign the Declaration of Independence until August 2^nd of that year (John Hancock was the only one to sign it on July 4^th, 1776!)? The Declaration of Independence was not delivered to Great Britain until November 1776! Enjoy your weekend of celebrations!

June is recognized as National Homeownership Month. As of late, our homes have turned into not only the place we spend the most time relaxing with family, but also places of work, playgrounds, schools, and gyms. It’s not news to anyone that we as a society have spent much more time at home over the last year and a half than ever before. It only makes sense then, to make sure you absolutely LOVE the space that you’re spending so much time in!

Cleaning up clutter.

Clutter can have a negative affect on your overall health! Messy spaces are stressful and can make life more difficult than it needs to be (if you keep losing your keys, keep reading!). Studies show that some people who live in cluttered homes have worsened working memories.

If you’re feeling overwhelmed with clutter at home, start by cleaning one space per day! Pick a room for each day of the week and focus on that room for that day. Open any closet doors, drawers, cupboards, etc. and let them hang wide open while you work. Get rid of (throw away or donate) anything that doesn’t bring you joy! This can be hard to do, but if you haven’t handled the item (used it, wore it, played with it, looked at it) in over a year, it’s safe to say it can go!

Once you’ve cleared out the clutter, you’ll have extra space to reorganize the belongings that you decided to keep. While you’re reorganizing – grab some cleaning wipes or a dishpan with warm water and clean as you go!

The last thing to do as you finish up the room is the floor! Sweep and mop or vacuum, and don’t forget to use the crevice tool to get the hard-to-reach corners!

Clear out the kitchen.

Your kitchen can follow the same pattern as the clutter clearing above, but you might need more than one day. Make sure to go through your pantry, spice rack, freezer, and refrigerator and throw out any expired food (or donate if it is non-perishable). Toss out any broken or un-usable utensils, and plan to donate any kitchen gadgets that you just don’t use (looking at you, potato masher).

Reorganize your pots and pans, your plates and dishes, your cups and mugs, and clean those spaces as you go!

Add some light!

Poor lighting, dark corners, and shadows can make a room just feel gloomy or feel cluttered when it is not. Open up some curtains or invest in curtains that let more natural light in but still provide privacy. If natural light isn’t an option, add some aesthetically pleasing lamps or string lights to your space!

Add some nice smells!

Think about how nice it is to walk into a space that just smells good. Find some wax melts or automatic room sprays that smell great and get them set up! There are several inexpensive options. If you opt for candles, just do so safely and never leave a lit candle unattended.

Rearrange furniture.

Sometimes this one can be tricky, but if you’re able to rearrange your furniture, the change will feel great!  If you have too many pieces, it might be time to sell or donate a chair or end table. Get creative and think of new ways to create a better flow to your living spaces! Think of ways to arrange bedrooms, too!

There is so much that you can do to update the aesthetic of your home without spending anything, or by spending very little! Adding new lights, a couple houseplants, and freshening up paint are great inexpensive ways to update your home without having to break your budget. But if you are ready to do some major upgrades, NorthRidge is offering a great promotion on home equity lines of credit! Find out more by clicking here!

Happy Pride Month! 

May is Mental Health Awareness month. The years 2020, and now 2021, have brought unique circumstances into our lives. This has caused major disruption in the way we live, work, and socialize. It comes with no surprise that mental health is declining around our communities. For some people, it is the first time they have experienced anything like it. Where do you turn and how do you get help?

Mental illness can be scary; but you are not alone, truly. One in four adults will experience some form of mental illness in their lifetime. With such a large part of the population facing these struggles, we should not be afraid to talk about it. Never be afraid to talk about your mental health, because you might be the light that gives someone else their own voice to talk about it. Open discussions eliminate stigmas and stereotypes. You wouldn’t hide or brush off a broken bone or other serious physical ailment, so your mental health should be just as much of a priority.

If you want to be an advocate, Community of Hearts has a great advocacy training course online that takes about 1 hour and it is a great way to get started! Click here: Community of Hearts – Home

“A mental health advocate is anyone who is a voice for those suffering from depression, anxiety, or any other disorder – who hopes to disseminate a message of hope and support.” -Theresa Barchard

While not an exhaustive list, here are some resources if you or a loved one needs support:

For immediate help:

National Suicide Prevention Lifeline, immediate support when you’re in a crisis or distress, additional help to finding resources. Available 24/7: Call 800-273-8255

Suicide Prevention Lifeline Online: https://suicidepreventionlifeline.org/

Crisis Text Line, the 24/7 emergency service is available if you or someone you know is experiencing a psychiatric or mental health crisis. Text: “MN” to 741741

National Alliance on Mental Illness (NAMI) Minnesota, connect for help, to navigate the mental health system, get support, and find resources: Call 888-626-4435

Minnesota Warmline, talk to a specialist who has firsthand experience living with a mental health condition: Call 651-288-0400 OR Text: “Support” to 85511

Substance Abuse and Mental Health Services Administration Disaster Distress Helpline, offers crisis counseling and support if you or a family member is experiencing emotional distress related to a disaster. Call 800-985-5990

Peer Support Connection Warmlines, peer-to-peer telephone support that’s safe and supportive. Open 5 p.m. to 9 a.m. Call or text: 1-844-739-6369

Iron Range Area Local Therapists/Counselors/Psychologists/Psychiatrists:

Alcohol Detox/Range Treatment (Virginia): 218-741-9120

Calm Waters (Virginia): 218-404-9611

Ely Behavioral Health Network (Ely): 218-235-6104

The Guidance Group (Virginia): 218-576-5757

Heartwood Center (Hibbing): 218-263-1347

Insight Counseling (Virginia and Hibbing): 218-481-7660

Kind Mind Counseling Center (Hibbing): 218-263-5949

Lakeview Behavioral Health (Hibbing): 218-293-4789

MosaicSelf Counseling (Ely): 218-216-8467

Range Mental Health Center (Virginia): 218-749-2881

Range Mental Health Center (Hibbing): 218-263-9237

Speare Psychological Services PA (Virginia): 218-741-3740

Teaching your kids the importance of money is very important and, starting at a young age can implement great life skills early on. As a parent or guardian, it is your job to teach your kids good money management skills. This can seem like a big and scary task, but we have a few tips and tricks to help you accomplish this parenting task.

A few ideas that both you and your kids could start include:

1. Use a clear jar to save money in.
   Using a clear jar, rather than a cute pink piggy bank – allows the kids to physically see the money that they are putting away grow.
2. Show them that things cost money.
   If you are out shopping, and they (the kids) want a toy, have them bring their own money that they have saved to use towards it. Starting small and building up to bigger things helps them understand the value of money. Going forward, this will help kids understand that if they buy “x”, they will have less money to buy “y”. And therefore, having to make decisions about which is more important to them.
3. Lead by example!
   Leading by example is key to many things throughout life. As an adult, you have more money than kids, but if you limit your impulse buying, it will help your kids do the same. Thinking about “need” rather than “want” can lead to good money management skills as they grow up.
4. Set them up with their own bank account.
   By the time your kids are teenagers, you should get them set up with their own bank account. This is the next level to money management and will hopefully prepare them for a much larger account as they become an adult and will teach them the responsibility of their finances.
5. Help them make their own money.
   Getting your first job is usually both exciting and scary for kids. By helping and encouraging them to find and apply for their first job this will lead to a healthy work ethic.
   Seeing their bank account grow as they continue to add in their hard earned paychecks, is a very rewarding feeling!

Stay tuned on our Facebook for more fun and knowledgeable ways to teach your kids of all ages the importances of money!

Imagine if – You paid off that debt that has been weighing on your shoulders, you took that vacation you have been dreaming of, or you transformed your home into the perfect cozy oasis (and bonus, raised the value of your home!).
Those things are possible, and we are here to help you with them with our Home Equity Line of Credit (HELOC).

Your next thought is probably “But how?” Here’s how it works!
First, we’ll explain what HELOC is: A HELOC is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans. A HELOC is a secured loan and that means that the interest rate is often lower than other common types of loans, like personal loans or credit cards, and the interest may be tax deductible.

How it works:

A HELOC loan borrows against the available equity in your home and the house is used as collateral for the line of credit. You can also think of this loan like a credit card – As you repay your outstanding balance, the amount of available credit is replenished. So you can borrow as much or as little as you need to. The benefit of this loan is because this is a secured loan, the interest rates are typically lower than personal loans or even credit cards!

So, whether your “Imagine If” list is checking off home improvement projects, paying off student debt or booking that much needed vacation, then contact one of our representatives today and we will help you achieve your goals and answer all your questions!

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