Category: Uncategorized

Your credit score is an important three-digit number that represents your creditworthiness (i.e., measure of how likely it is that you will repay your debts). It’s a critical factor in various aspects of your financial life, influencing your ability to:

• Secure loans: Lower interest rates on mortgages, auto loans, and personal loans.
• Rent an apartment: Landlords often check credit scores.
• Get approved for credit cards: Higher credit limits and better rewards.
• Obtain insurance: Potentially lower premiums.

How is Your Credit Score Calculated?

In general, several factors contribute to your credit score, with different degrees of importance:

• Payment History (35%): On-time payments on credit cards, loans, and other bills are paramount. Late payments can significantly damage your score.
• Credit Utilization (30%): This refers to the amount of credit you’re using compared to your available credit. Keeping your credit utilization low (ideally below 30%) is crucial.
• Length of Credit History (15%): A longer credit history generally indicates a more stable financial track record.
• Credit Mix (10%): Having a diverse mix of credit accounts (e.g., credit cards, loans) can slightly improve your score.
• New Credit (10%): Frequent applications for new credit can negatively impact your score for up to two years.

Checking Your Credit Score:

You can obtain your credit report for free from the three major credit bureaus: Equifax, Experian, and TransUnion. You can also use credit monitoring services or bank websites to access your score.

You can go to https://annualcreditreport.com WEEKLY to review your report for free.  

Improving Your Credit Score:

• Make on-time payments: This is the single most important step.
• Lower credit utilization: Pay down existing debt and avoid maxing out your credit cards for rewards or points even if you pay it off fully each month.
• Dispute errors: Review your credit report for any inaccuracies and dispute them with the credit bureaus.
• Consider a secured credit card: This can help build credit history if you have limited or poor credit.

Important Considerations:

• Different credit scoring models exist: FICO and VantageScore are two common models, and they may produce slightly different scores.
• Credit scores can fluctuate: Your score is not static and can change based on your financial behavior. It can take time to improve a credit score sometimes 6, 9 or 12 months or more dependent on your unique situation.

By following this guidance, you can help to increase your score and secure loans and credit at more favorable terms to help enhance ability to pay down debt and improve your overall financial wellness. 

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your credit? Check out our Credit Report Review session https://parachutecreditcounseling.org/services/credit-budget-counseling/#credit-report-review or call 716-712-2060.

Here are 10 financial fumbles that could be sabotaging your savings making it harder for you to reach financial stability and achieve long term financial wellness.

• Fumble # 1 – Your Mindset!

Thinking you have absolutely NO money to save is a fumble!  Be sure you are thinking about your financial needs versus wants and that you are *not* elevating wants to needs. Most financial experts agree that you can be saving some money, even if a few dollars. Start small by saving change and considering fun action steps like the Penny Challenge.  With the Penny Challenge, you save a penny on Day 1, 2 pennies on Day 2, 3 pennies on Day 3 and so on.  By 365 days, you will have nearly $670!

• Fumble #2 – Paying Everyone Else FIRST

When you get paid, don’t wait until the end of the month or the end of your paycheck to see how much you have left to save. Instead, pay yourself *first* by automatically transferring a set amount of money to your savings account each payday. This action prioritizes savings and helps assure that you stay on track with your savings for emergencies, both short and long term goals, retirement and more.

• Fumble #3 – Unintentional Spending/Not Tracking Spending

If you are not managing your money, who is? Perhaps, no one. This is a risky situation to be in as we depend on money and income for our very survival. You need a spending plan (i.e., budget) to be sure you have a good plan for financing your life now and in the future.  If you are not directing your money intentionally as to where it should go, you are also not honoring the time and effort it takes you to earn it.   

• Fumble #4 – Competing with Others

Competition with others is not always a bad thing when we have the goal of improving ourselves (e.g., in sports, school) but competing with others in terms of material possessions can be very damaging to our financial wellbeing. Outward appearances can be extremely deceiving and people can get into a great deal of debt trying to impress others – everything from the shoes they wear to the car they drive. We don’t really ever know someone else’s full financial situation, so living within YOUR means and prioritizing and honoring your own financial goals is key. 

• Fumble #5 – Not having savings goals

Research shows that people who have savings goals written down (or otherwise recorded) where they are very specific, are most likely to achieve them. Without goals, our income tends to evaporate into meeting needs and random purchases based on what we want in the here and now.  

• Fumble #6 – Not automating your savings

Saving regularly can be a “set it and forget it” action. The easier you make the process, the more likely you are to continue it as a habit and this can have a big payoff over time! Also, you can make it intentionally difficult to withdraw your savings making it less tempting to do so. This really helps your money grow over time with compounding interest – where you earn interest on interest you have already earned!  More to come on that!

• Fumble #7 – Saving money in the wrong accounts

To get the most out of your savings efforts, you will want to research the current interest rates offered at both banks and credit unions (go to bankrate.com), any fees, and special features that may be useful to you like overdraft protection or special savings accounts for children or college students. 

• Fumble #8 – Pulling from savings for wants (not needs)

Many people don’t avoid the temptation of withdrawing from their savings account for unnecessary expenses. Because of this, their savings do not have the chance to really grow and gain the advantage of compounding interest. They also confuse what is truly a need in their life versus a want and they often elevate wants to needs. By waiting at least 48 hours before withdrawing from savings and reflecting on the withdrawal first, we can give our money a chance to really grow.  Finally, waiting another month or for our next paycheck for a desired purchase can help, so think about delaying that gratification a bit to help meet future goals. 

• Fumble #9 – Giving Up Too Easily/Not Understanding Compounding Interest

As mentioned above, building strong savings and financial stability takes time, effort and consistency. It also includes the magic of compounding interest! This is where depositors are rewarded with some percentage of interest (extra, free money) by placing their money in certain accounts for specified periods of time. Typically, the longer you keep your money in the bank and the more money added to the account, the more interest you earn.  Also, because interest is then compounded (interest you’ve already earned earns interest too), it’s like magic in the way it can grow!

• Final Fumble # 10 – Not Having a Bank Account

If you don’t have a bank accounts/a savings account, you are missing out on compound interest (see above), the establishment of banking relationship for your future wants and needs (e.g., a mortgage loan), opportunities to learn about various ways to grow/invest your money as well as building credit.  Doing your research into local and online banks is a good way to start to see all the benefits offered by banks and is safer option to store extra funds and a way to encourage you to save!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.

Join us for a FREE Parachute virtual Zoom workshop: BACK BY POPULAR DEMAND: Deck the Halls on a Dime: Holiday Budget Hacks

Wednesday, December 4, 2024 from 12:00 p.m. to 12:30 p.m.

Join us for our Holiday Budget Hacks Workshop and discover how to enjoy the holidays without breaking the bank! You’ll learn how to avoid common holiday spending pitfalls. Whether you’re a seasoned shopper or just starting out, this workshop will equip you with the tools and knowledge to have a stress-free and financially sound holiday season.

Register now! Spots are limited!

Register at: https://bit.ly/parachute-holidays

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

Job Title: Reception Coordinator (Part-Time)

Summary:

As a Reception Coordinator, you’ll be the first point of contact for clients and all incoming calls, providing exceptional customer service with a positive and patient demeanor. Your responsibilities will include greeting clients, answering calls, scheduling appointments, and handling various administrative tasks.

Key Responsibilities:

• Client Interactions:
  • Greet clients warmly and provide a welcoming atmosphere.
  • Answer incoming calls promptly and direct callers to the appropriate department.
  • Assess clients’ financial needs and schedule appropriate appointments.
  • Provide pre-appointment information and collect necessary paperwork.
  • Process client payments and paperwork.
• Administrative Tasks:
  • Assist with data entering and processing.
  • Perform opening and closing procedures to ensure security.
  • Process incoming and outgoing mail.
  • Prepare and send mass communication letters.
  • Maintain a professional appearance of the reception area and counseling rooms.
  • Complete other assigned projects.

Qualifications:

• Proficiency in Microsoft Word and Excel.
• Excellent oral and written communication skills.
• Skilled at prioritizing tasks.
• High School Diploma or GED equivalent required.

About Parachute

Parachute is a non-profit, full-service credit counseling agency, providing confidential financial guidance, financial education, counseling, and credit repayment assistance to consumers since 1965. Parachute helps consumers trim expenses, develop a spending plan, and repay debts. Counseling is available at our Main Office in West Seneca, by telephone, and online.

Hourly rate range for this position is $17.00. Individual compensation is based on various factors unique to each candidate, including skill set, experience, qualifications, and other job-related reasons. We offer growth opportunities for professional development along with hourly pay increases. Other benefits include:

• Paid Personal Time Off (PTO)
• 401(k) Plan
• Paid Holidays
• Health Insurance

Please send resumes to robert.dunn@parachutecredit.org