Community A newsletter for WCCU Members WCCU NMLS ID#: 518892 Westerly ~ Richmond South Kingstown www.westerlyccu.com 401.596.7000 This Credit Union is federally insured by NCUA. article cont. on page 2 Sign up for Mobile Banking on our website & download our App for your phone. Mobile Banking WCCU NMLS ID # 518892. Federally insured by NCUA. Finally, a local mortgage company you can trust! • Purchase and Refinancing • Fixed Rate and Variable Rate Options • Jumbo Financing • Conventional, FHA, and VA Financing (Federal Housing Authority/Veterans Administration) WCCU is your perfect Mortgage Partner! Call our mortgage team today at 596-7000 or apply online! Good for you. A credit score of 700 or above makes it easier and less expensive for you to buy a home, lease a car, start a business, or obtain any other type of financial credit. But you can degrade or ruin that credit, if you agree to co-sign a loan for a close friend or family member who can’t get credit on his or her own. A study from the Federal Trade Commission shows that 75% of all sponsoring co-signers wind up paying the loan off themselves. Still, it’s tough to say no to a loved one asking for a co-sign. So if you can’t, here’s what you should under- stand about the risks and rewards of allowing “piggybacking” on your good credit. Knowledge is king As the co-signer, you need to know that you are equally responsible for repay- ment of the loan, and that all activity will be reflected on your credit reports. Therefore, if the person you’ve co- signed for has agreed to make the monthly payments, but doesn’t, not only will the lender expect you to fulfill the obligation, but your credit report will reflect the negative activity. You make the rules As the loan partner with the stronger credit score, you have the most to lose in a co-signing arrangement. So make sure your co-signee knows, going in, what the financial limits are on any loan arrangement. Talk it out Before you sign on the dotted line, have a candid conversation with your co-signee. Make sure he or she knows Thinking of co-signing? Understand the risks You’re probably already familiar with the advantages of solid credit; if there’s a downside, it’s that someday someone you love may ask you to put that good credit on the line. that the borrower tends to be the one who benefits from co-signing, and that benefit comes with big respons- ibility. You might be aware that for any rea- son the borrower defaults, you bear the risk of having your bank accounts frozen, wages garnished, and credit score lowered. Also, if the borrower is unable to pay due to illness, handicap or death, the co-signer inherits the responsibly for the loan. Be aware of the downsides In a recent report from the consumer News Community August 2013 issue Helping our Members Achieve Financial Success!
Transcript
CommunityA newsletter
for WCCU Members
WCCU NMLS ID#: 518892
Westerly ~ RichmondSouth Kingstown
www.westerlyccu.com 401.596.7000
This Credit Union is federally insured by
NCUA.
article cont. on page 2
Sign up for Mobile Banking on our
website & download
our App for your phone.
Mobile Banking
WCCU NMLS ID # 518892. Federally insured by NCUA.
Finally, a localmortgage company
you can trust!
• Purchase and Refinancing • Fixed Rate and Variable Rate Options
• Jumbo Financing• Conventional, FHA, and VA Financing
WCCU is your perfect Mortgage Partner! Call our mortgage team today at 596-7000
or apply online!
Good for you. A credit score of 700 or above makes it easier and less expensive for you to buy a home, lease a car, start a business, or obtain any other type of financial credit.
But you can degrade or ruin that credit, if you agree to co-sign a loan for a close friend or family member who can’t get credit on his or her own. A study from the Federal Trade Commission shows that 75% of all sponsoring co-signers wind up paying the loan off themselves.
Still, it’s tough to say no to a loved one asking for a co-sign. So if you can’t, here’s what you should under-stand about the risks and rewards of allowing “piggybacking” on your good credit.
Knowledge is kingAs the co-signer, you need to know that you are equally responsible for repay-ment of the loan, and that all activity will be reflected on your credit reports. Therefore, if the person you’ve co- signed for has agreed to make the monthly payments, but doesn’t, not only will the lender expect you to fulfill the obligation, but your credit report will reflect the negative activity.
You make the rulesAs the loan partner with the stronger credit score, you have the most to lose in a co-signing arrangement. So make sure your co-signee knows, going in, what the financial limits are on any loan arrangement.
Talk it outBefore you sign on the dotted line, have a candid conversation with your co-signee. Make sure he or she knows
Thinking of co-signing? Understand
the risks You’re probably already familiar with the advantages of solid credit; if there’s a downside, it’s that someday someone you love may ask you to put that good credit on the line.
that the borrower tends to be the one who benefits from co-signing, and that benefit comes with big respons-ibility. You might be aware that for any rea-son the borrower defaults, you bear the risk of having your bank accounts frozen, wages garnished, and credit score lowered. Also, if the borrower is unable to pay due to illness, handicap or death, the co-signer inherits the responsibly for the loan.
Be aware of the downsidesIn a recent report from the consumer
NewsCommunity
August 2013 issue
Helping our Members Achieve Financial Success!
years at WCCU!
Congratulations Galeon your dedication to WCCU &
always working hard to Help our Members Achieve
Financial Success!
Congratulations to Gale DeFanti, who is celebrating her
35th Anniversary at WCCU!
35
WCCU- Odds & Ends
Happy Anniversary!
Adapted MSN.com article posted 7.19.13 by Brian O’Connell at partner site CardRatings.com.
Wayne is cooking Hotdogs!
Debit promo or credit cards!
Winner will receive a $250 VISA Gift Card from WCCU & (4) Hi-Speed Ferry Tickets from Block Island
Hi-Speed Ferry- Pt Judith to Old Harbor, BI!
WIN a Trip to Block Island!
You Could
*For official rules/details, please visit our website, www.westerlyccu.com or any of our branches.
How do I enter? Simply use your WCCU Debit MasterCard between
July 1, 2013 & Aug 31, 2013 like a credit card and every signature-based purchase is automatically entered for a chance to win*.
How do I use my Debit Mastercard as a credit card? Simply push ‘credit’ when asked payment type,
then when asked ‘PIN or press Enter’- press ‘Enter’. You’ll then be asked to sign for the transaction- it’s easy!
Gale started her illustrious career as a teller 35 years ago. She quickly moved into the loan dept., starting as a loan receptionist then a loan officer. Her career continued at the Dunn’s Corners office as Branch Supervisor, then Asst. Branch Manager. She now works at the Granite St office, as a Financial Services Officer.
Gale recently completed the Credit Union National Association (CUNA) Financial Counseling School & received the design- ation of Certified Financial Counselor. This program covered topics including: taxes, insurance, investments, con- trolling living expenses, understanding consumer credit, retirement, and more.
Her dedication to the Credit Union is obvious as shown in the relationships she has with members & staff. “I have been working with some members so long through good and bad. It makes me feel really good to be able to help them.’
advocacy groups warn co-signers there may be “no going back” once you pull the trigger on loan. They advise weighing all potential issues, including the health and potential for job loss of anyone for whom you co-signa loan.
Have an exit strategyIf opting to co-sign a loan, make sure you understand the terms and what the process is for getting yourself removed from the loan. Note that if allowed, this is usually a lengthy process and is not likely to happen unless you have been on the loan for a while and the borrower is making regular payments towards the loan.
Agreeing to co-sign a loan is serious business- one that puts your credit and your savings at risk. So go into such an agreement with your eyes wide open and with full due diligence regarding your loan partner.
Have questions? Ask a Financial Services Rep at 401-596-7000 or pop into any branch.
Article continued from Page 1
August 16th, 11:30-2:30.Wayne LaGasse, our MEMBERS Financial Services
Rep, will be cooking on the grill at Westerly branch on Granite St.. Stop by and enjoy a delicious hotdog!!
We Found Waldo!!During July, Waldo was in our branch on Granite St. in Westerly!We’d like to thank Other Tiger bookstore for having us be one of the locations on theirWhere’s Waldo Scavanger Hunt, celebrating the 25th anniversary of the ’Where’s Waldo?’ books, We had alot of fun!
