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Posts Tagged ‘financial tips’

Buy Now, Pay Later

Posted on: February 20th, 2025 by Ashley No Comments

Buy Now, Pay Later: What is this payment option?

Several “Buy Now, Pay Later” (BNPL) options are available when shopping online. You may see these offers from companies like Klarna, Afterpay, or Affirm, to name a few of the most popular. These companies provide the option to pay for your item(s) in anywhere from 2 to 12 payments (or even more) over a few weeks, months, or a year. Depending on the company, the amount of the purchase, and the payment plan selected, there may or may not be interest charges and/or convenience fees.

Most buy now, pay later companies do not require a credit check. Instead, they conduct a soft pull which does not impact your credit score and they offer interest free payment plans for smaller purchases. This also means that your payments to a BNPL company do not impact your credit score. Keep in mind, there are some BNPL platforms that do use a hard credit check when they offer longer-term financing for higher priced goods.

Pros and Cons of Buy Now, Pay Later

There are some pros to BNPL options, but the cons can be financially disastrous.

Pros:

Cons:

Yes, having no impact on your credit score is both a pro and a con. On one hand, you don’t need good credit to make a purchase; and typically, late payments won’t negatively impact your score right away (more on this below). On the other hand, if you handle your payments well, your credit score is still not impacted. Usually when you make on-time payments on debt, your credit score reflects that. You become a “good borrower” in the eyes of most creditors and lenders – BNPL options (usually) don’t share your good payment habits to credit bureaus.

Circle back to the comment above at how late payments won’t negatively impact your credit score – that is not at first. If you’re late for too long, your defaults will eventually be sent to a debt collector. If a collector is unable to reach you for payment, at that time your debt could be reported to the credit bureaus. If it gets this far, your credit score could drop. Read more here about how debt collectors report your debts.

Shadow Debt: The Dark Side of BNPL

What happens if you use buy now, pay later options a little too frequently? We call that shadow debt. Shadow debt is sneaky, it’s not as top of mind as other types of debt like your auto loan, your mortgage, a loan on a boat or ATV, etc. Shadow debt can add up quietly in the background. It can eat up your cash flow and leave you wondering where all your money is going. It is the biggest risk when opting for BNPL payment options.

While BNPL payment options can be useful in some circumstances, proceed with caution. Keep track of your purchases and set up your own payment reminders. If there is something you want but you can’t afford it at the moment, set a savings goal and create a savings plan.  

If you find yourself needing new car tires or a new refrigerator or stove, but you can’t afford it upfront, talk to your financial institution about options. NorthRidge has solutions for these types of situations, stop by or give us a call!

Identity Theft – Protect Yourself

Posted on: July 3rd, 2024 by Ashley

Protect Yourself

On our blog last week, we talked about the ways identity thieves steal your information and what they might do with it once they get it. Things like using your identity when being arrested or investigated, maxing out your credit cards and taking out new credit in your name, acquiring income in your name, and more. Things that have the potential to be totally financially devastating if not caught early.

There are steps you can take to protect yourself from falling victim to identity theft. It’s important to be aware of the possibility and keep it in mind.

Guard your cards. Credit/Debit card fraud is a type of identity theft. This is when someone gains access to your payment card and uses it to make purchases you did not authorize. Be cautious about where you enter your card information online, never make purchases from an untrustworthy or unknown website and never allow websites to “remember” your card number. Do not give your card information over the phone unless you made the call and you know you’re speaking with a trustworthy business. Go paperless when possible for bills and statements and review your statements to verify account activity. Card fraud may not require that you freeze your accounts and file a report with the FTC, but ask your financial institution’s fraud department what they recommend.

Use credit monitoring services. You can use a paid service for robust monitoring, which might be necessary depending on your financial status or if you operate a business. CreditKarma.com is a great free service that allows you to review your credit report to find if any new accounts have been opened in your name. Report and investigate anything that doesn’t add up.

Protect your phone. If you store personal information in your smart phone, you need to keep your phone locked and secure with passcode, touch ID, or face ID.

Be Wi-Fi Aware. Public Wi-Fi is an identity thief’s playground if it is not secure. Make sure the Wi-Fi you’re accessing is the correct network and that it is authenticated. Sign out of all accounts as soon as you are finished. Consider using a VPN when on public Wi-Fi.

Practice good cyber security. Be wary of spammy emails, it’s better to just delete it if it seems suspicious. Stop and think before clicking links. Change your passwords regularly and don’t use the same password over.

Signs of Identity Theft

Identity theft is so devastating because many people don’t know they are a victim until they are notified by a financial institution. Do not rely on others to notify you of potential fraud – know what to look for and conduct checkups on your information regularly. Early detection can limit the damage. You may be a victim of identity theft if:

It Happened… Now What?

If you notice anything fishy with your accounts, medical records, taxes, or even your criminal record, you need to take immediate action to resolve it. Remember, fast action limits damage.

Steps to Take Immediately:

First, call the fraud department at your financial institution(s) where fraud has occurred. They will give you instructions on what you need to do. You may or may not need to complete the following steps below, but ask the fraud department what they recommend. They will most likely deactivate any compromised cards. If necessary, ask them to freeze or close your accounts to prevent any additional charges.

Second, contact one of the three major U.S. credit reporting companies to report yourself as a victim of identity theft and place an initial fraud alert. The one you contact must tell the other two, so you only need to contact one.

Equifax: 888-766-0008
Experian: 888-397-3742
Transunion: 800-680-7289

equifax experian transunion logos

Next, order a credit report. You are entitled to one free copy of your report once per year from all three credit bureaus. You must contact all three to order a report from each one, starting with one immediately and the other two in a month or so to track any new fraudulent activity. Review it immediately and report any fraud details you find to the FTC and possibly the police.

Then, file a complaint with the FTC about the theft by going to reportfraud.ftc.gov or by calling 877-438-4338. Include as much detail as possible about the theft and follow their instructions carefully. Save and print your completed complaint. The printed complaint becomes your Identity Theft Affidavit. This affidavit helps you create an Identity Theft Report. Keep records of the day and time you file your complaint, the complaint reference number, and extra copies of the affidavit.

Finally, file a police report by going to your local station (or the station where the theft occurred if it was an attack on your criminal record). Bring your FTC Identity Theft Affidavit, any other proof of the theft, proof of address, and your government-issued photo ID.

You can never be overprotective of your personal information and identity! Protect it and protect your financial future.

Identity Theft

Posted on: June 26th, 2024 by Ashley

What is Identity Theft?

Identity theft is a federal crime. It is when someone uses your personal information without your permission or knowledge. The purpose is usually for financial reasons. Identity theft is the most common form of financial fraud. Prime targets are children, students, military members, veterans, and seniors but it can happen to anyone.

Typically, identity theft is when a thief steals your personal information to pose as you in some way. Synthetic identity theft is the use of some of your personal information, like your Social Security Number, combined with fake information, like a different name, to create an entirely new persona. This type of identity theft is harder to detect and can lead to more damage.

identity theft graphic

How do they get your info?

While some of these may seem like old tactics, they are still widely used and very effective for thieves. These things are especially important to keep in mind when you are traveling.

Mail Theft. Stealing mail out of mailboxes is still a common form of thievery. Consider a PO Box or a locking mailbox if possible.

Dumpster Diving. Thieves dig through trash to find key information about you. Shred documents that contain information about you before throwing them away.

Shoulder Surfing. Always conceal keypads with your hand or body when entering PINs, credit card information, or passwords.

Purse/Wallet Theft. Don’t carry your Social Security card in your wallet. Keep minimal payment cards on you and know which ones you have.

Computer Hacking/Online Identity Theft. The digital world has provided more opportunities for identity thieves, making it easier than ever for them to steal your information. Virtually lock your identity by practicing cyber security every single time you go online.

What happens with your info?

An attack on your identity can cause severe damage to your finances, credit score, and complicate your life in many ways. Thieves might:

Think if any one of the above things happened to you and how devastating it could be. Oftentimes, identity theft includes more than one of the above. It is so important to protect your information. Stay tuned in this week and next while we share best practices for protecting yourself, signs of identity theft, and the immediate steps to take if it happens to you.

Watch next week after this series for a quick one-question quiz on identity theft and your chance to earn a $20 Visa gift card!

Employment Scams

Posted on: April 2nd, 2024 by Ashley

Job and Employment Scams

In an increasingly virtual world, with countless remote-work jobs becoming more and more available, there are more opportunities than ever for scammers to get creative with employment scams. A scammer will advertise for a “job” in the same ways an honest employer would – on job sites and social media, in local newspapers, even on TV or on the radio. You are promised a job, and in return they collect your personal information and sometimes your money.

Examples of a Job or Employment Scam

Remote work. Many people dream of working from home, scammers know this and regularly try to take advantage. Scammers offer a job such as reshipping or reselling products or offering start-up kits to help you start your own business with just a small investment. The general rule of fraud applies here: If it sounds too good to be true, it probably is. If you are offered a job where you are led to believe you can make tons of money in relatively short time, it is almost undoubtedly a scam.

Common Remote Work Scams:

How to Avoid Job and Employment Scams

Before you apply to a job posting, look the company up online. Make sure they exist, are honest, and have real employee reviews from career websites like Indeed or Glassdoor. Some small companies may not have reviews, but you can determine their legitimacy in other ways.

Mention the job to someone you trust, like a relative or best friend. Get the advice from others who are not emotionally invested.

Do not pay for the promise of a job. Honest employers, especially government jobs, will never ask you to pay to get the job. Do not fall for the idea that you can pay for a startup kit or masterclass to launch a successful online business from home. These offers are almost always a scam to get your money and very, very few people are successful in operating a business from this type of scenario.

What to do if you Paid a Scammer

Accidents and lapses in judgement happen… but now what? Immediately contact the financial institution you used to send money and report the fraud. You can ask to have the transaction reversed, if possible, but it is unlikely you get your money back if you paid out of a checking account (with a cash transferring app or a debit card). If you used a credit card, you may have more luck reversing the transaction.

If you provided information about your accounts (card numbers, account numbers), contact your financial institution immediately to deactivate cards and close accounts.

Report Job Scams to the FTC

If you see a job scam, or lose money to one, report it to the FTC at ReportFraud.ftc.gov. You can also report it to your state attorney general.

Find out more about how to avoid scams at ftc.gov/scams.

Source: FTC Consumer Advice. https://consumer.ftc.gov/articles/job-scams

Quiz and Contest Rules

There will be a two-week timeframe from when this blog is posted to read it and take the quiz. Those with the correct answers will be entered into the drawing for that post. Winners will be contacted via the information they entered when taking the quiz. One entry per person. NorthRidge employees and their immediate family (spouses, parents, children, live-in partners), and board members, are not eligible to win. Additional giveaway rules are located here.

Romance Scams

Posted on: February 14th, 2024 by Ashley

Knowledge is Power

The best way to protect yourself from becoming a romance scam victim is knowing what could happen. We saw no shortage of fraud and scams in 2023. The use of artificial intelligence (AI) continues to grow, so undoubtedly we will see more in 2024. 

Today is Valentine’s Day, a day for love and romance! In keeping with that theme, today’s topic is romance scams. These scammers target individuals who use social media and dating apps. Read on!

PS, don’t forget, you have a chance to win one $20 Visa gift card for every blog posted with the topics of fraud and scams this year! Take the one-question quiz at the end of each blog post about fraud and scams (like this one!). If you answer correctly, you’ll be entered for a chance to win!

Is it love?

Romance scams can be either be quick or take time. Scammers use new, but fake, relationships to steal money from people after spending days, weeks, or even months, talking to their victim online. They gain trust from their victim over time via various online conversations. Then, they ask for money or personal information. There may give a variety of reasons for needing money or your personal information:

Scammers typically ask for you to pay them in ways that are harder to trace and impossible to reverse, like gift cards or apps like Venmo or Cash App. If someone you have never met ask for money in these ways, be very suspicious and proceed with caution (phone conversations and FaceTime do not count as meeting, remember that AI can be used to trick you).

Lastly, another common lie from an online “love interest”, is an offer to help you invest in cryptocurrency. While many victims of romance scams send money with a gift cards or peer to peer services, the most substantial losses — more than one-third of losses to romance scams in 2022 — were in cryptocurrency, according to the FTC.

Romance Scams image

Send a simple e-card to your online sweetie for Valentine’s Day instead of money. If you decide to meet in person, do so at a public place and make sure you tell someone where you are going and when they should expect to hear from you afterwards. Have a safe and LOVEly Valentine’s Day!

Quiz and Contest Rules

There will be a two-week timeframe from when this blog is posted to read it and take the quiz. Those with the correct answers will be entered into the drawing for that post. Winners will be contacted via the information they entered when taking the quiz. One entry per person. NorthRidge employees and their immediate family (spouses, parents, children, live-in partners), and board members, are not eligible to win. Additional giveaway rules are located here.

Scams to Watch out for in 2024

Posted on: January 22nd, 2024 by Ashley

A new year could bring new scams.

Scammers and fraudsters are constantly looking for new ways to get money from you. It is up to you to protect yourself from falling victim to a scam. Oftentimes scammers are so sophisticated that they can trick you into willingly giving them cash or worse, your account information. If this happens, it’s usually impossible to get your money back.

This year, we are going to take some extra time to chat about scams, and how to protect yourself from becoming a victim. Because these topics are so important, we are including a chance to win one $20 Visa gift card for every blog posted with the topics of fraud and scams. Take the one-question quiz at the end of each blog post about fraud and scams, answer correctly, and you’ll be entered for a chance to win!

Scams in 2024: Artificial Intelligence

Scammers might use new technology, like AI, to add new twists to scams that have worked in the past.

Today, we’re going to talk about AI powered scams. Artificial intelligence can easily create videos, photos, and voices that look and sound like celebrities, your employer, or even your relatives. You are tricked to believe that you are speaking to someone you know and trust, but you are not.

These impersonation scams or deepfake scams are on the rise and can be extremely realistic.

Grandparent Scam

A common AI scam is when a scammer calls someone pretending to be a grandchild (or other type of relative). AI can collect audio data (from social media or other sources) to clone your relative’s voice and sound like them when they speak to you. They will mention a stressful or urgent situation they are in and request money. They may also request you keep it a secret from the family so they will not be embarrassed (affecting your emotions by making you feel special that this “relative” reached out to you, but to also avoid getting caught in their scam). Then, they request a wire transfer of money or that you buy gift cards and give them the information.

To avoid scams like this, confirm the identity of this person. Ask them questions that only your relative would know. Stop the conversation and reach out to that relative by the contact information you have for them. You could also reach out to another relative that would know the situation if it was real.

Typical Scam Elements

Learn to recognize a scam right away by remembering these scam hallmarks:

Stay Vigilant

It is unfortunate that this is the world we live in, but you must remain constantly vigilant and alert when it comes to protecting your money, your accounts, and your identity.

NorthRidge will never ask you for your login information. Do not give your online banking login information to anyone, not even someone claiming to be from your financial institution.

When in doubt, hang up, do not text back, and/or delete suspicious emails.

Living Paycheck to Paycheck

Posted on: August 5th, 2022 by Ashley

Saving Money

We’ve already posted several times on social media and our blog about saving money. You’ve heard the message. You probably hear it regularly everywhere else too, “Pay yourself first”, “Keep a rainy-day fund”, “Build your emergency savings”. You already know what you’re supposed to do, but why is it so hard to do it?

Maybe you’re living paycheck to paycheck and can’t imagine saving even $5.00 a week. Or, maybe you have money left over after your bills are paid, but you spend it on other things that you enjoy (i.e. eating out, going to the movies, buying more luxury-type items, etc.). It could be that you aren’t sure where or how to save or invest. It could also be that you don’t trust financial institutions. All of these are valid reasons that you might not have a savings account.

But guess what? Everyone can save money. Everyone. Yup, even if you live paycheck to paycheck. Even if you do not plan on giving up the lifestyle you’ve earned. And, if you don’t trust financial institutions, just come in and visit with us. Leave your money at home and just come for a conversation. Tell us your story. Whether or not you decide to open an account is entirely up to you. Unsure on how to start? Again, just come in and have a conversation with us. We are in the ring fighting for your financial future, no matter what your present situation looks like.

Tips on Saving When You Live Paycheck to Paycheck

It can feel overwhelming and impossible to save anything when you live in a cycle of paycheck to paycheck. The frustration, stress, and fear behind your situation is justified (and normal). Not only are you NOT alone in that battle, you don’t have to fight it alone. Come in to NorthRidge and chat with us about how we can help make your situation better. Our members tell us they feel like they have more money after working with us on a creating a budget or a spending plan.

  1. Start small. Review your spending in areas where you might be able to make small cuts: groceries, clothing, eating out, streaming accounts, unused gym memberships, etc… Find $5.00 per week. That’s it. $5.00 per week will grow over time. Set a goal to build it up to $100.00. Once you get there, set another goal. Celebrate your wins.
  2. Don’t pay for cash. Don’t use ATMs that charge you to withdraw (and then get a fee from your bank on top of it!). Go for cash-back when you use your debit card to pay at gas stations or grocery stores.
  3. Think about your income. Can you ask for a raise at work? Can you work overtime? Are you able to add to your income with a second job or by selling items you no longer use or need? If you’re on a fixed income, can you utilize community food shelves to help offset grocery costs? Think about community-based services, like AEOA, that can help you.
  4. Seek more affordable housing. Is your rent or mortgage too much for you? You might consider downsizing. Due to economic changes, this may not be possible at this time, but it’s a thought worth exploring just in case.
  5. Restructure or consolidate your debt. Are your payments to credit cards and other loans too high? Come talk to us about consolidating. We have helped members that have saved hundreds of dollars per month on debt payments after consolidating.

You can save. We can help. Call us to set up a free financial counseling session or just to chat about your current situation: 877-672-2848.

Youth Month

Posted on: April 6th, 2022 by Ashley

Teaching Kids About Finances

April is National Credit Union Youth Month! Not only do we plan on celebrating our area youth this month with some fun activities, but we also want to focus on teaching kids about finances. That’s where you as parents, guardians or other influential adults, come in to help! To be financially literate is to have the skills and knowledge to make efficient decisions regarding money management.  

Youth Financial Literacy Month

Why is financial literacy important for our kids?

We’ve heard it before, “Kids don’t need to know about money.” Don’t they, though? If they aren’t taught about money and budgeting and credit, how will they effectively manage their finances as adults?

Financially illiterate adolescents turn into unprepared adults. Primary financial education creates adults that can make great financial decisions about savings, debt, and large purchases (like cars and houses).

Teenagers are often compelled to choose a college to attend before they graduate high school. Statistically, most of them don’t actually know how to shop around for the best tuition prices. They often aren’t sure how to set a budget to live on their own for the first time. They aren’t aware of how to properly use a credit card to build their credit without building debt.

Financial literacy isn’t yet a part of STEM curriculum in most public schools. It is up to us as influential adults to help our kids learn about money.

How to Teach Children 5 and Under About Money

  1. Save money in clear jars instead of piggy banks. This allows them the visual of seeing their money growing. Talk about it growing with them, “Look, last week you had 4 quarters and 1 one-dollar bill, this week you have 6 quarters and 2 one-dollar bills!”
  2. Let them buy things with money. Allow them to take a dollar or two out of their jar when you go shopping. Allow them to buy something, let them pick it out and pay for it at the register. Help them understand the price versus the amount of money they have.
  3. Open a savings account for them and have them go to the credit union with you to deposit their savings so they witness the interaction. Carefully explain what’s happening while the teller takes the money. 

How to Teach Elementary-Aged Children About Money

  1. Start teaching about opportunity costs by saying, “If you buy that T-shirt instead of the tank top, you won’t have enough money left to buy a candy bar.” Allow them to weigh-in on their decisions.
  2. Instead of just giving out an allowance for nothing, give them a list of chores with dollar amounts attached to each chore they complete. $1.00 per day for doing dishes, another $1.00 per day for vacuuming the living room, $10.00 to mow the lawn, etc. This will help your children understand that money is earned.
  3. Teach them about impulse buying. If they see something at the store they MUST have at that moment, tell them they can use their earned allowance for that; but if it’s over $15.00, tell them that if they still want it the next day that you can go back to the store for it.
  4. Continue bringing them to your credit union so they can check the balance on their savings account. Have them give the teller their money to add to their savings. Have them save their receipts so they can track their account growing over time.

How to Teach Teens About Money

  1. Teach them about not comparing what they have to what others have. If they complain about how their car is older than everyone else’s at school, let them know that their car still gets them from home to school and work, and that’s all cars are for anyways. Or if they want to buy name-brand clothing, let them know they can do that or they can save that money for a summer concert and be creative with their current wardrobe.
  2. Give them ownership of their accounts at the credit union. Open a checking account for them and give them a debit card. Help them track and balance their account weekly.  
  3. Teach them about credit cards before they turn 18 and get all those offers in the mail. Credit cards are not bad, but they need to be used properly to grow credit.
  4. Help them find their first job to make their own money. When they get a job, show them how to set up direct deposit into their account, or how to do a mobile check deposit.


Financially literate adults in the future start with us now! Give your kids the gift of financial freedom. It’s time to start teaching kids about finances!

American Heart Month

Posted on: February 2nd, 2022 by Ashley

Financial Stress and Your Heart

February is American Heart Month. We talk a lot about how your mental, physical, and financial health all play a role in your overall wellbeing. Poor financial health can cause stress and affect your mental health. And, as we all know, stress can seriously affect your physical health (especially your heart!).

We hear it all the time, heart disease is the leading cause of death in America. This is due to many different factors, but stress plays a significant role in that statistic. According to the University of Rochester Medical Center, “long-term stress can increase blood cholesterol, triglycerides, blood sugar, and blood pressure.” All the above are commonly known risk factors for heart disease. Stress can also make people react in unhealthy ways, such as smoking, drinking in excess, not getting enough sleep, and eating unhealthy foods.

The leading cause of stress in America? Finances. The American Psychology Association’s Stress in America survey showed that 72% of Americans feel stressed about money. It’s unsurprising, due to the recent inflation, the pandemic, the housing market, and so many other factors. But how do we combat financial stress?

Tips to Feel Less Stressed About Finances

  1. Set and keep a budget. The more control you feel over your finances, the less stressed you will be, regardless of your income. Knowledge is power, so get to know everything you have coming in and going out!
  2. Understand your debt. Take control by consolidating debt, selling things you don’t need or use to pay off smaller debts, and try to avoid using your credit card for regular spending (that is, if you’re not in the habit of paying it off right away – using your credit card regularly and paying it off regularly is a great way to build your credit).
  3. Make a plan and set an achievable timeline to pay off your debt. Again, feeling in control eases stress.
  4. Make sure you understand how your credit score works. Check out this blog post to learn more about credit scores!
  5. Call NorthRidge Community Credit Union to get help with any or all of the above if you’re not sure where to start! 877-672-2848
  6. Don’t neglect general stress management. Eat healthy most of the time, exercise for 30 minutes a day (even a nice walk over your lunch break counts), drink more water, and strive for 7 to 9 hours of sleep every night.  

This month, pledge to take care of your heart, pick 2 or 3 of the above things that you can do right now to get started on your path to de-stress!

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