What Constitutes Your Credit Score?

Your credit score can affect your ability to secure a mortgage, auto loan, or any other type of financial assistance. As this video demonstrates, multiple factors contribute to your overall credit rating. 

A credit score can range from 350 to 850. A score over 700 is considered good; a score over 770 is excellent. However, the average American’s credit score typically falls between 650 and 699. The Fair Isaac Corporation (FICO) is the institution that determines each person’s credit score, which is based upon several components. Payment history constitutes 35% of a credit score. An individual’s debt makes up another 30%. The length of a person’s credit history is 15%, and the number of credit inquiries comprises another 10%.

Do you know your credit score? GCS Credit Union offers members multiple financial services , including credit score ratings, auto financing, and mortgage assistance. Call our O’Fallon, Illinois location today at (618) 797-7993 to speak to a GCS Credit Union representative about becoming a member.

The Benefits of Starting a Savings Account Today

Over the past several years, the American public has become aware of the importance of using credit cards judiciously and not amassing excessive debt. However, too few individuals recognize the benefits of having a savings account in addition to a checking account for more secure financial health and freedom. No matter how modest one’s income may be, setting up a savings account can provide numerous advantages down the road. 

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Home Down Payment

  • Home ownership is a desire for many Americans. As the recent economy has proven, making a large down payment instead of contending with a large mortgage often translates into greater financial security. In order to make even a minimal down payment, many banks and credit unions require at least 20% of a home’s selling price. Depending on your geographical location, that figure may range from $20,000 to $200,000 for a two-bedroom home. Therefore, it’s essential that you begin a savings account early into adulthood to ensure that you will have the funds you need when buying a home.

Retirement Income

  • Next to owning a home, having adequate funds upon retirement ranks as a high priority for many individuals. Yet few people recognize how quickly retirement can come and put off saving for the future; without any financial safety net to take care of expenses once an individual is no longer working, retirement becomes drastically less appealing or even unachievable. Don’t let your golden years be compromised by financial insecurity. Having a savings account will help you amass the retirement income you require.

Funds for Unexpected Expenses

  • Between now and retirement, you are bound to experience unexpected financial needs. Your car may suddenly break down. You or a loved one may fall ill with an ailment not covered by insurance. No matter your situation, your savings account may be the buffer you need against damaging financial debt.

GCS Credit Union can help you bolster your financial security with a savings account. Moreover, we offer credit union members competitive mortgage, auto financing , and personal loan rates. Call our O’Fallon, Illinois office today at (618) 797-7993 for more information.

Stay Ahead Of The Big Banks with This Information!

GCS Credit Union can help you build financial security. We offer members a wide array of financial services , from checking accounts to auto loans. To find out more about our member benefits, call our O’Fallon, Illinois location at (618) 797-7993. You can also check out the following articles to learn more about credit unions!

GCS Credit Union OFallon IL

  • Do you know what a credit union is? InvestorGuide.com gives an overview of this type of financial institution.
  • A rising number of Americans are leaving their banks to become credit union members. CBSNews.com breaks down why so many people prefer the services that credit unions offer .
  • One reason why individuals choose to become credit union members is because these institutions support local communities. U.S. News & World Report explains how.
  • A credit union offers more than just a checking account . FOXBusiness.com reports on how a credit union can help you refinance your mortgage.
  • You don’t need a bank for auto financing . Bankrate.com gives six reasons why you should secure your car loan through a credit union.

How a Credit Union Can Help You Get Behind the Wheel of a New Ride at a Reasonable Rate

Buying a car can be a fun and worthwhile experience if you find the right dealership and auto financing. If you are considering a new vehicle, visit the credit union for relief from high auto loans . These financial institutions are quickly surpassing banks as the best choice for individuals who need auto financing assistance. 

Happy hispanic man in his new car

Available Loan Assets

  • Over the past several years, many local and nationwide banks have been adversely affected by changes in the U.S. economy. In contrast, credit unions have fared incredible well. In 2009 alone, credit unions had more than $80 billion in available auto financing funds for credit union members.

Car Dealer Relationships

  • Because they have not succumbed to the financial difficulties that have afflicted so many banks, credit unions currently enjoy very strong relationships with countless car dealerships. These dealerships know that auto financing secured through a credit union will not default, which is why they are eager to help customers secure auto loans from them. This in turn makes car dealerships more likely to negotiate car prices with credit union members and offer more attractive deals to them.

Competitive Auto Financing Rates

  • Due to their solid financial standing, credit unions can offer credit union members highly competitive auto financing rates. Alternately, banks with unstable financial backing may attempt to inflate their auto loans as a means to generate greater revenue for other expenses and shareholder profits. Therefore, whether you currently are a credit union member or considering becoming one, ask your car dealership salesman what auto financing terms he can offer through a credit union. Chances are these terms will surpass those available from many banking institutions.

GCS Credit Union affords members the most competitive auto loans on the market. In addition, we offer credit union members the most attractive rates for mortgages, credit cards, and personal loans. Call our O’Fallon, Illinois location today at (618) 797-7993 for more information.

What is a Credit Union?

A credit union is a financial institution that makes decisions to benefit the local community. As this video demonstrates, a credit union offers multiple benefits over a bank .

A bank is a for-profit institution that pays earnings only to shareholders, not bank customers. In contrast, any profits made by a credit union are given back to all members. These assets may be awarded as interest rebates, dividends, or free services. Because profits are distributed among local members, the community as a whole can reap the benefits. 

GCS Credit Union provides comprehensive financial assistance to members in the greater O’Fallon, Illinois region. We offer members mortgage loans , auto loans, and much more. To speak with a GCS Credit Union representative regarding our full range of services, please call (618) 797-7993.

Tips on Responsible Use of Your First Credit Card

Having a credit card allows you to make secure purchases and build a reputable credit history. Given that many financial institutions review your credit history to determine whether you are eligible for a mortgage or auto financing, it’s imperative that you use your credit card with discretion. The following tips offer first-time credit card users advice on how to responsibly manage this newfound financial freedom:

Hands with a purse and card

Shop around for cards with low interest rates.

  • Not all credit cards are created equally, which is why you should refrain from signing with the first company that offers you a credit line. First-time credit card users may have difficulty securing a card with low interest rates; however, you still have options. Often, credit unions offer competitive credit card interest rates for members. Also, before signing on the dotted line, try to negotiate the interest rate quoted to you for more favorable terms.

Refrain from using credit for frivolous spending.

  • Though having a credit line can prove tempting for impulse purchases, remember that you are responsible for paying back those expenses. While a credit card can be extremely valuable when buying necessities such as groceries or gas, your bills can quickly balloon when you use it for needless items such as clothing or expensive dinners out. Though using credit can seem inconsequential at the time of purchase, you may be surprised at the size of your balance come the end of the month.

Pay off your balance in full and on time.

  • Even when you are conservative in your spending habits, don’t forget to pay your credit card bill on time. No matter how minimal the balance, even one late payment can adversely affect your credit rating. If possible, also make every attempt to pay your balance in full. Though it may not negatively impact your credit score to carry a balance on your card, you will begin to incur interest charges, which can be considerable.

GCS Credit Union members may qualify for our Visa credit card, which comes with extremely competitive rates. We also offer members mortgages, auto loans , and personal loans. To learn more about our credit union services, call our O’Fallon, Illinois location at (618) 797-7993.