Don't Lose Tax Refunds to Sharks
It’s a treat to get a tax refund from the Internal Revenue Service (IRS). But life can turn less rosy if you lose your refund to a fringe lender. A fringe lender is a loan shark or scam organization that will take your tax refund as a “down payment” on a loan. But it’s a loan you’ll never be able to repay because eventual interest rates can range from 40% to more than 700%.
Many fringe lenders are located in check-cashing outlets, casinos, and reservations--some are even in car dealerships. They offer refund anticipation loans: If you don’t have your refund check yet from the IRS, they will lend you the money now in exchange for your refund check once it arrives. While the fringe lender is waiting for your refund check, it will be charging excessive fees.
Avoid the lure of fringe lenders. If you’re in need of cash or an advance to pay bills, make the smarter choice. Contact your Credit Union for help.
Avoid High-Cost Home Loans
During the past few years, many borrowers who got saddled with high-cost mortgage loans could have qualified for less expensive loans and paid billions of dollars less in interest. These consumers walked through the wrong door to get their mortgage loans.
Companies and independent brokers aren’t legally required to tell you that you could get a better deal elsewhere. Their goal: higher commissions. And if you don’t read the fine print, you could wind up paying costly prepayment and other penalties.
Before you shop for a new home, know where you stand. Request your free credit report at annualcreditreport.com – the only authorized online source for free credit reports under federal law. Review your report for accuracy and correct any errors you may find.
It’s also important to know your credit score. Even though your credit report is free, getting your credit score will cost extra. You can obtain your credit score from the three major credit reporting agencies at experian.com, equifax.com and transunion.com.
Know where you stand then visit your Credit Union to get the rates and terms you’ve worked hard to earn. Visit our online Mortgage Center for more information.
Universal Default is Latest Credit Card Trap
Have you ever been late with a credit card payment? If your payment was for a non-NASA Federal credit card, the mistake could cost much more than one late payment fee, thanks to a provision buried in the fine print of many credit card agreements.
Complaints about universal default clauses – acted on by more than one-third of all major credit card issuers – are on the increase. These clauses allow issuers to raise your interest rate if you’re late making a payment to them – or even to someone else.
This means that if Issuer A finds out you were late paying Issuer B, Issuer A can raise your interest rate. Many consumers are unaware of the dangers because they don’t read or don’t understand the credit card agreement.
Experts caution that the penalty doesn’t have to kick in for big-ticket items such as a car or a mortgage payment; it could be for something as innocent as an overlooked $30 phone bill or a forgotten $20 book club subscription.
Head off problems by paying all bills on time, and preferably at least a week or more ahead of the payment due date. Once a negative hits your credit report, the damage is done.
Be sure to compare the fine print on any credit card offer you are considering to the NASA Federal Visa. The NASA Federal Visa is a card you can trust.
