MoneyLineLine 10 THINGS YOU CAN DO TO AVOID FRAUD CREDIT BUILDER LOANS EMBRACE OUR eSERVICES JULY 2020 PHILADELPHIA FEDERAL CREDIT UNION If you spot a scam, report it at ftc.gov/ complaint. Your reports help the FTC and other law 10 THINGS YOU CAN DO TO AVOID FRAUD enforcement investigate scams and bring crooks Crooks use clever schemes to defraud millions of people every year. ! to justice. They often combine new technology with old tricks to get people to send money or give out personal information. Here are some practical tips to help you stay a step ahead. Spot imposters. Scammers often pretend to be someone you trust, like a government official, a family member, a charity or a 1 company you do business with. Don’t send money or give out personal information in response to an unexpected request – whether it comes as a text, a phone call or an email. Consider how you pay. Credit cards have significant fraud Do online searches. Type a company or product name into protection built in, but some payment methods don’t. Wiring your favorite search engine with words like “review,” “complaint” 5 money through services like Western Union or MoneyGram 2 or “scam.” Or search for a phrase that describes your situation, is risky because it’s nearly impossible to get your money back. like “IRS call.” You can even search for phone numbers to see That’s also true for reloadable cards (like MoneyPak or Reloadit) if other people have reported them as scams. and gift cards (like iTunes or Google Play). Government offices and honest companies won’t require you to use these Don’t believe your caller ID. Technology makes it easy payment methods. for scammers to fake caller ID information, so the name and 3 number you see aren’t always real. If someone calls asking Talk to someone. Before you give up your money or personal for money or personal information, hang up. If you think the information, talk to someone you trust. Con artists want you to caller might be telling the truth, call back to a number you 6 make decisions in a hurry. They might even threaten you. Slow know is genuine. down, check out the story, do an online search, consult an expert – or just tell a friend. Don’t pay upfront for a promise. Someone might ask you to pay in advance for things like debt relief, credit and loan offers, Hang up on robocalls. If you answer the phone and hear a 4 mortgage assistance or a job. They might even say you’ve won a recorded sales pitch, hang up and report it to the FTC. These prize, but first you have to pay taxes or fees. If you do, they will 7 calls are illegal, and often the products are bogus. Don’t press 1 probably take the money and disappear. to speak to a person or to be taken off the list. That could lead to more calls. Be skeptical about free trial offers. Some companies use free trials to sign you up for products and bill you every month 8 until you cancel. Before you agree to a free trial, research the company and read the cancellation policy. And always review In This Issue: your monthly statements for charges you don’t recognize. Don’t deposit a check and wire money back. By law, PFCU Board of Directors – In the Spotlight ...................................3 financial institutions must make funds from deposited checks Teaching Your Kids About Finances ...................................................3 9 available within days, but uncovering a fake check can take weeks. If a check you deposit turns out to be a fake, you’re Financial Education in Action ................................................................4 responsible for repaying the institution. What To Know When Buying a Used Car .......................................5 Sign up for free scam alerts from the FTC at ftc.gov/scams. Get the latest tips and advice about A Loan To Help Build Or Improve Credit ........................................6 10 scams sent right to your inbox. Share The Perks Of PFCU Membership ...........................................6 If you spot a scam, report it at ftc.gov/complaint. Your reports help Embrace Our eServices ............................................................................7 the FTC and other law enforcement investigate scams and bring crooks to justice. Source: FTC.gov WHY YOU SHOULD AVOID MAXING OUT YOUR CREDIT CARD A credit limit is the maximum amount you can charge to a credit card before repayment. Depending on your income, debt and credit history, your card’s limit could be anywhere from $100 to tens of thousands of Get Help With Credit Card Debt dollars. Whatever the amount, it’s recommended that you never utilize If you’re carrying a high balance on your credit card and all of it. That’s because there are a number of drawbacks to maxing out having trouble making payments, we’re here to help. Our your credit card. partner, Clarifi, a financial education and counseling service, THE EFFECTS OF MAXING OUT YOUR CREDIT can assist you with managing your finances and offer Using all of your available credit comes with drawbacks that range budgeting suggestions. They can help you find the road from the immediate to the long-term: toward financial freedom. Clarifi’s Certified Counselors can help you with reducing debt, improving credit, saving money • You could go over your limit and face fees. As soon you go over and creating a realistic budget. your credit limit, your credit card issuer could charge a fee. This fee is usually no more than $35. Counselors are available for in-person or telephone-based • You’ll be unable to use your credit card. By hitting your limit, your sessions. Their hours are Monday through Friday from credit card is no longer a spending option until you make a payment. 8 a.m - 6 p.m. and Saturday from 8 a.m. - 2 p.m. That can be an inconvenience at best and at worst, it can leave you (hours vary by location). Call our toll-free number at with no way to pay for an emergency. 855-761-4975 or visit our website at clarifipartner.org/pfcu. • Your credit score will probably drop. A significant chunk of your credit score is based on how much credit you’re using compared to how much you have available. Carrying high balances on your credit cards can make your credit score go down. • Your minimum payment will increase. Your minimum monthly payment is based on the size of your balance. So the bigger your balance, the more you’ll be required to pay. If you fail to make your minimum monthly payment, you could face additional fees. • You may have more difficulty with repayment. If you maxed out your card because of a lack of funds, you may be unable to pay off your credit card debt and accumulate large amounts of interest as a result. • Your interest rate may go up. Exceeding your credit limit or missing a monthly payment can result in getting hit with a penalty rate. This rate is the maximum interest rate a card issuer can charge you, usually reaching about 30%. • You may not qualify for future loans. When you apply for a loan or line of credit, most lenders will review more than just your credit score. They’ll also look at your current accounts, including how much available credit you’re using. If you’ve maxed out a card, that could cause a lender to disqualify your application. • Your account could be closed. Some credit card issuers will close an account that regularly hits the credit limit. PFCU.COM 2 PFCU BOARD OF DIRECTORS – TEACHING YOUR KIDS ABOUT FINANCES IN THE SPOTLIGHT Helping children learn about money when they’re young can give them The Philadelphia Federal Credit Union smart financial management skills (PFCU) is a member-owned, not-for- profit financial institution that exists to last a lifetime. entirely to serve our members. PFCU Financial experts recommend: does not issue stock or pay dividends • Talking to your kids about to outside shareholders. All earnings money, such as when watching are returned to members in the form of lower loan rates, higher dividend rates, a TV show and your child sees fewer fees, free financial education something they want. Paulette Chambers and community activities. Our Board • Helping them learn the value of Directors is a dedicated group of of money by shopping and volunteers that are elected from within our membership. understanding prices. • Encouraging making deposits This month, we highlight the volunteer service of Paulette to a savings account. Chambers. Paulette was born and raised in Philadelphia. • Discussing big purchases with She is a graduate cum laude of Peirce College with an A.S. Tuition Rewards, for children your kids. in business administration and is a member of Phi Theta saving for college. When you • Showing them how to set Kappa Honor Society. Paulette has been a member of the register your child in Tuition up a budget. Philadelphia Federal Credit Union since 1971 and served Rewards, they can earn Tuition • Explaining to your children on various committees as an active volunteer for the past Rewards points toward scholarships how you learned from past 28 years. She has been a member of the Supervisory at participating private colleges money mistakes. Committee and was Chairperson of the Loan Policy and Loan and universities across America.* Review Committees. Today, Paulette serves on the Board of PFCU YOUTH PROGRAMS Each member enrolled in Tuition Rewards will receive a minimum Directors’ Executive Committee. She is also a member of We provide programs for kids quarterly reward of 250 rewards the Asset and Liability Management Committee.