Credit Card Reform is Here. What It Means For You.
Learn the Pros of Credit Union-Issued Credit Cards

It’s interesting that the word “credit” appears in both names. If we revert to the core of the word, credit is defined as:
Belief or confidence in the truth of something.
A reputation for sound character or quality; standing.

Call me cynical, but this definition seems to have been lost over the years by the credit card issuers. The mere act of issuing credit has as many definitions, rules and restrictions as there are credit card issuers; forcing major reform and changes to the law.

But just as there are many culprits on the issuer side, there are many that have abused credit making it a “War of the Withs” (meaning: those ‘with’ credit, those ‘with’ bad credit and those ‘with’ credit to issue).

So as the second phase of credit card reform kicks in this month and we stand on the precipice of “one small battle being won” prohibiting arbitrary rate increases, it causes me to reflect back to what I know about credit cards. I’ve since discovered the important differences between credit cards issued by banks and credit unions.

Fortunately my research was already done by professional analysts. A recent study conducted in October, 2009 by Pew Charitable Trusts reviewed terms for the 12 largest banks issuing credit cards and 12 largest credit union card issuers. The study found that credit unions offer more consumer-friendly terms. “In general, the largest credit unions offered lower rates than did the largest banks. In July 2009, median advertised purchase rates were between 9.90 and 13.75 percent on surveyed credit union cards, approximately 20 percent lower than comparable bank rates,” according to the study. It also pointed out that every one of the 12 largest banks’ cards would run into conflict with the restrictions outlined in new credit card reform law.” I also discovered the results of a 2007 Consumer Reports survey stating that credit unions offer cards with low annual percentage rates and “the fewest hassles.” (I don’t know about you, but to me, credit unions seem to operate within the original intention and definition of ‘credit’ in many aspects.)

So I encourage you to become informed on CARD Reform law, read your statements, (the big and the small print); and perhaps visit your local credit union to explore all your options. It may save you some headaches and money. See below to view a concise list of the latest changes to the law.

The law passed by Congress last year overhauling credit card rules takes effect in stages.
• Card-issuers must disclose any changes that take effect when the card is renewed and must inform customers how long it will take to pay off a card balance with only minimum payment.
• In billing statements, card issuers must disclose all due dates and penalties for late payments. Also, the use of the term “fixed rate,” is banned unless the APR or interest rate can’t be changed for any reason.
• Due dates must be the same each month and must be at the end of a designated business day.
• Payments at local branches must be credited on the same day.
• Payments in excess of the minimum are applied to the account with the highest rate of interest.
• Card issuers can’t charge fees to pay by mail, phone, and electronic transfer, except for expedited payments.
• Over-limit fees are banned unless the customer has opted in to such a program.
• APR or finance charge increases are banned during the first year of an account.
• Any promotional rate must last at least six months.
• Card issuers must post credit card agreements on their Web site.
• Issuing credit cards to those under 21, without the permission of a parent or guardian who will take responsibility for the debt is banned.
• Increasing credit limits on the accounts of those under 21 is banned unless both individuals agree.

Spring Break doesn’t have to mean Spring Broke

If your kids are in middle school, you have some time to relax before the real pressure about Spring Break kicks in. Enjoy this time while you can.

However if you have high school or college-aged kids, you’re likely challenged with the financial and social aspects of Spring Break. Fortunately there are many more options than just bikini clad beaches for young people and I, like all of you, am trying to steer my kids toward the milder excursions or even contributing to society in some way.

Why? First of all, beyond concerns about bikini contests and beer, Spring Break is expensive! It’s during this time that airfare and hotel rates are at their highest. The average student spends over $1,200 just to come back with zero in their bank account, a bad sunburn and credit card debt.
So I perused the internet searching for affordable alternatives to steer my teens in a direction I can support in heart and wallet. Together we agreed upon some great adventures that have both financial and personal rewards.

I was thrilled to discover that MTV and many others promote what’s called Alternative Spring Break, listing opportunities to help others in need and have the most rewarding time of your life. If MTV promotes something, it has to be cool!

Habitat for Humanity hosts what’s known as Spring Break Collegiate Challenges throughout the country including many great locales in Florida, the Gulf region and the southwest including California. These are regions that score high on any teen or young adult’s list.

Embrace the great outdoors and clean up the environment with the SCA (Student Conservation Association). Their excursions include working and exploring the magnificent Grand Canyon. Students enjoy hiking the Grand Canyon’s beautiful trails while also removing graffiti and accomplishing important vegetation projects.

If you seek a more international experience, Amizade is an organization you may want to consider. Amizade is the Portuguese word for friendship. They offer global service learning and volunteer programs throughout the world taking young people to the regions of Jamaica, Mexico, Ireland and beyond.

Alternative Spring Break excursions are not only affordable, but they contribute to our environment and society. My teens were far more accepting of these programs than I ever anticipated. This is real adventure for far less expense and the money they are saving, I’ve offered to match and deposit in their U22 savings account.

Visit www.U224U.com to learn more about GTE Federal Credit Union’s youth checking account and credit card. Because money is important no matter what your age.

Hello everyone!!

I am starting realize more and more how important building credit is, even though I’m still in college. Did you know that not having any credit record at all can be bad too? Having good credit is one way people review how responsible you are, for example. But before we get ahead of ourselves, it’s very important that we understand how credit works. Credit cards act as a sort of small loan that can be paid back in whole or in smaller payments. Not only do you have to pay the money you loan back, but you have to pay interest on the loan, which is like a payment to the credit card company for letting you use their money. Now you may be saying to yourself, “Sheesh! so what’s so good about using a credit card when I have my debit card?” Well first off, you can have access to money you don’t necessarily have immediately, and secondly, you build up your credit score. If you want to buy anything bigger than an mp3 player, like a house or a car, you have to have good credit. Your credit score is a summation of your bill paying habits. If you pay your bills late and find yourself getting into serious debt, you probably have a bad credit score. Which means when you go to a financial institution and ask for a loan they will look at your credit history and say, “Sorry we can’t help you, your credit is bad”. Because after all why would anyone want to loan you money if they’re not sure you can pay it back. Well anyway, if you want to learn more about how credit works check out this website or ask your local GTE branch member. http://www.youngmoney.com/creditreport/

Have you all checked out the U22 credit card? That’s right, with U22 you can have your very own credit card with a $500 maximum limit.

Also if you want to see if you know your stuff check out this U22 Credit Card Quiz to see if you’re ready for a U22 credit card. http://www.proprofs.com/quiz-school/story.php?title=u22-credit-card-quiz

Hello!

Suite Caroline here! This will be a very busy month for me. I have a lot of concerts and a lot of work to do to make sure I am “show ready” for all of my performances. It really is a lot of work to follow my dream of being a professional singer/songwriter. I practice and song write every day a couple of hours at a time. It makes for late nights and I am often tired in class and working hard to keep up because I miss a lot of school. BUT I wouldn’t have it any other way. This is what I love. I guess it’s like the people I am watching in the Winter Olympics right now. Even when they weren’t having the best day, they still got out there and gave it their all. That’s what got them to the world Yelstage!! I want to be on the world stage!! (Just not in ski jumping!!) The cool thing is that I do get paid to do this. I just got my year end tax statements. I will be filing income tax as a 12 year old! My parents like to laugh about that! But it makes me feel like I am on my way. What is the message of this blog?? Hard work+time+effort+more hard work+earning money for working hard=the road to success!! Find your road, get on it, put the pedal to the floor and see where the road takes you!!!!!