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Paul Berry interviewed Dr. Brenda Cude, professor of consumer economics, at the University of Georgia on a recent episode of Home and Family Finance Radio. Dr. Cude spoke with Paul about teaching college students, especially freshman, responsible use of credit and debit cards. You can listen to the episode here. Home and Family Finance Radio is a show made available by the Credit Union National Association.
Media reports have been full of the sub-prime mortgage crisis which is running rampant in the US. You may be saying, "That doesn't affect me, I have a mortgage I can handle - I'm not in the market for a house in the near future." Even if you're not about to lose your home, the mortgage crisis has some surprising repercussions for most consumers. Recently, Jilian Mincer wrote an article in the Wall Street Journal highlighting the consequences of the current credit crunch for consumers. The credit crisis relates not only to mortgage borrowing but it also affects all types of lending. Tight credit makes a consumer's credit score even more important than it was just one year ago. Past Boardcast posts have urged UFirst members to get to know their credit score.
Let's analyze what happens when you have a need to borrow money for your next vehicle or home improvement. The financial institution will ask you for income information and they will run a credit report using one of the three large credit reporting bureaus. This will give them a snap shot of your credit history and generate a credit score. Your score will be based on a mathematical formula:
Jilian Mincer points out that "missing even a single payment could cost 100 points" of reduction in your credit score. The lower your score the harder it is for you to borrow and the higher your interest rate. The article points out that:
Until this summer's sub-prime crisis, a score of 720 or higher earned you some of the best interest rates, says John Ventura, director of the Texas Consumer Complaint Division at the University of Houston Law School. Borrowers now need a score in the high 700's to get the same benefits.
A credit check up that begins with getting a free yearly credit score is , fiscally, as important as getting a yearly physical. Using the website www.annualcreditreport.com will allow you to get a free credit report once a year. This report will not give you your credit score. Credit Scores can be purchased on this site in conjunction with requesting your credit report or can be purchased from individual credit reporting companies like Equifax, Experian and TransUnion. Your fiscal health is a priority at UFirst Federal Credit Union. Visit, call or email credit union staff if you have any questions about improving your credit score.
Recently UFirst CEO Linda Bourgeois was invited to serve as a trustee of the New York Credit Union Foundation . The foundation was originally established in 1970 to assist NYS credit union volunteers with their education and training needs. The NYCUF updated their goals in 1995 and their mission expanded to include: encouraging the credit union philosophy of "people helping people"; serving the underserved; promoting consumer financial education and providing disaster relief. Recently this mission has been put to work in support of initiatives like:
The NYCUF also joins the work of the National Credit Union Foundation whose mission focuses on supporting both national and global projects. Recently, the National Credit Union Foundation has been at the forefront of assisting credit unions who were devastated by Hurricane Katrina and the recent Earthquake in Peru.
The New York State Credit Union Foundation and the National Credit Union Foundation embody the vision of the credit union movement. Credit Unions distinguish themselves from mainstream financial institutions with our "people helping people" philosophy.
The UFirst Board of Directors met in the board room of our operations center on Rugar St. from 4:30 - 6:30 on Tuesday evening. The board learned that UFirst has had the highest loan volume to date during the month of August. UFirst membership is increasing and online banking use is on the rise.
CEO, Linda Bourgeois will be attending her first New York State Credit Union Chapter, President's Summitt in October. This trip to Albany will also include a meeting of the NYS Credit Union Foundation Board of Directors and the Credit Union League's CEO Round Table.
The board approved our pariticipation in the Credit Union League Scholarship Program for members whose sons or daughters will be graduating from High School in 2008. The scholarship program will be advertised in our next newsletter and the deadline for applications will be in January. UFirst member, Alex Mihalik was a statewide winner of the $1000 scholarship in 2006. Application information is available by calling or emailing the credit union.
Members who would like to propose items for board discussion are welcome to contact Linda Bourgeois, a member of the Board of Directors or email The Boardcast.
Ginny Brady, Ufirst board vice president, had an exciting 4 days visiting Spokane WA at the invitation of the Washington Credit Union League. The conference included sessions on a variety of topics of interest to credit union personnel and board members. Thursday's keynote was a "triple header". The first speaker was Scott Bedbury who did brand development for both Nike and Starbucks. Scott spoke on the underlying principles of branding. Good branding assumes a great product that represents more than just the product. This resounded with the group since credit unions, at their best, are more than just banks. They represent members sharing resources with members. As we say at Ufirst FCU, credit unions are focused on "Helping You Get There".
Conference participants also heard about the anticipated launching of the new PBS series JA's Biz Kid$, a youth financial literacy program, designed to blend with credit union ideals and encourage financial responsiblity and entrepreneurship among youth. Rebecca Charbonneau described her growth as a Biz Kid by detailing the rise of her business, The Candy Shoppe, located in Port Orchard WA. Rebecca is featured in the pilot of Biz Kid$.
The final keynote presenters were Trey Reeme and Brent Dixon from Trabian, a Dallas Texas based web development firm whose goal is to help credit unions reach out to their members through online channels. Trey and Brent launched their presentation by spoofing credit unions which try to attract young members by using "technofads". Trey and Brent feel that credit unions are "cooler" than we think because of the member-centered products and services we offer.
Trey and Brent sat in on an afternoon session featuring Ginny Brady, William Azaroff and Shari Storm. Each presenter has designed a blog with a unique focus aimed at members. The Boardcast respresents a blog designed to give members an inside way to communciate with the board. Changeeverything.ca was designed by William with a broader audience in mind. This unique blog sponsored by Vancity Credit Union in Vancouver BC inspires the citizens of Vancouver and beyond to look for ways to change their lives and the world for the better. The blog has been directly responsible for an innovative bike sharing program as well as a snow-storm inspired clothing drive that brought in over 4000 items to local shelters in 48 hours. Shari Storm of Verity Credit Union in Seattle WA launched Our Voices about 2 years ago to provide a forum for the real voices of Verity employees. This blog gives readers a chance to get to know the people behind the credit union. Trey and Brent joined the presenters in a lively interaction with the conference participants.
Future visitors to Spokane should be sure to take a day out to see the beautiful Manito Gardens in the heart of the city. Picabu and Huckleberry's are at the top of our restaurant lists.
Ginny Brady, Board Vice President, traveled to Spokane, WA on September 12th at the invitation of the Washington Credit Union League to join a panel speaking on social media in the credit union world. Ginny described the Boardcast. Pictured are her fellow presenters: Brent Dixon and Trey Reeme of Trabian's Open Source CU, William Azaroff of Vancity's Change Everything and Shari Storm of Verity's Our Voices . Trey, Brent, Shari and William have been at the forefront of using social media technology to enhance purposeful interaction among credit union members. More details to come of the highlights of the conference.
Four new legislators have signed on to cosponsor the Credit Union Regulatory Improvements Act of 2007 [H.R. 1537]. CURIA combines a series of regulatory enhancements that will allow credit unions to operate more effectively and efficiently. Specifically, CURIA modernizes credit union net worth standards; advances credit union efforts to promote economic growth; and modifies credit union regulatory standards by eliminating unnecessary, burdensome and outdated regulations, as well as making other needed reforms to credit union oversight and governance.
In just under six months, CURIA has attracted the same level of support it took two years to build in the 109th Congress, according to Ryan Donovan, Credit Union National Association (CUNA) vice president of legislative affairs.
The New York State Credit Union League in cooperation with member New York State Credit Unions has initiated a campaign called "Credit Unions For You" accompanied by a new website. The website and the campaign are designed to highlight the advantages of credit union membership. The site has links to financial education, current topics, news and calculators. It also describes how credit unions serve members in ways that are unique in the world of financial institutions.
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