The elusive credit score… you know it’s important, but what actually is it and how does it affect you? We’re here to explain how you can build a good credit score from scratch! 

Become an Authorized User 

Before you open your own credit card, becoming an authorized user on a family member’s card is a great place to start! As an authorized user, your name is attached to their credit card and their payment history is added to your credit files. Be sure to choose someone who has a good track record of paying their bills on time, so their on-time payments help improve your score. You don’t need to use or even have the credit card!  

Ask the primary cardholder to find out whether the card issuer reports authorized user activity to the credit bureaus. That activity generally is reported, but you’ll want to make sure — otherwise, your credit-building efforts may be wasted. 

You should come to an agreement on whether and how you’ll use the card before you’re added as an authorized user. If you would like to use their credit card, we recommend you’re prepared to help pay off what you charge to the card. It’s the kind thing to do for your family members and it also teaches you financial responsibility! 

Start with a Secured Credit Card 

If you’re building your credit score from scratch, you’ll likely need to start with a secured credit card. A secured card is backed by a cash deposit you make upfront; the deposit amount is usually the same as your credit limit. Secured credit cards aren’t meant to be used forever. The purpose of a secured card is to build your credit enough to qualify for an unsecured card — a card without a deposit and with better benefits. Choose a secured card with a low annual fee and make sure it reports payment data to all three credit bureaus: Equifax, Experian and TransUnion. 

• Keep Your Credit Cards Open – Unless your annual fees are through the roof, it’s a good idea to keep your credit card open. Credit bureaus will count a closed credit card against you, so you can pay off the card and leave it open, but don’t close it. 
• Limit Credit Card Applications – Opening multiple credits cards in a short time period will also be flagged by the major credit bureaus. While not always the case, they see this as a sign that someone is unable to maintain an income to keep up with expenses and pay off debt, so your credit score will go down. It’s recommended to wait at least six months in between credit card applications. 
• Set Up Automatic Payments – Paying your loans and credit cards regularly and on time is one of the best ways to build a positive credit. Making these timely payments shows the credit bureaus that you can maintain enough income to pay off debts and are capable of paying them on time which improves your score. 

Take Out a Starter Loan 

Ask us about credit builder loans, aka starter loans! Typically, the money you borrow is held by the lender in an account and not released to you until the loan is repaid. It’s a forced savings program of sorts, and your payments are reported to credit bureaus.  

Another option: If you have money deposited in a bank or credit union, ask them about a secured loan for credit-building. With these, the collateral is money in your account or certificate of deposit. The interest rate is typically a bit higher than the interest you’re earning on the account, but it may be significantly lower than your other options. 

Are you ready to start building your credit score? Talk to our lenders today to apply for a loan! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

There is no doubt that we could all use a vacation after this year! But that doesn’t mean we’re ready to blow the entire bank account on a trip. You just need to know how you can get savvy about saving on your vacay. Check out these tips for planning a summer vacation on a budget! 

Set a Budget Before You Plan 

Just like we suggest not searching for houses or wedding dresses before you set a budget, you’ll save yourself some heartbreak if you set a budget before planning. This gives you a great foundation to start the rest of your planning. 

To make it even easier on yourself, you can establish the maximum price you’re willing to spend on travel for: 

• Airfare or gas 
• Hotel or rental stay 
• Food 
• Local attractions 

Time Your Trip Wisely 

Planning a budget-friendly summer vacation is easier if you can travel when other people can’t because travel prices—for hotels, flights and car rentals—are virtually always calculated using a surge pricing model that’s based on supply and demand. Your travel costs are always going to be more expensive if you plan your trip during busy seasons of the year. For example, airfare typically goes up in price during holidays when many people are expected to travel, like Memorial Day, July 4^th, Labor Day, Thanksgiving and Christmas. And warm beach vacation spots are pricier during the prime summer season when kids are out of school. 

Try to travel when the local kids at your travel destination are still in school. If your kids don’t start school until September but the local kids from your vacation spot go back to school in August, you’ve hit the jackpot! 

Book Flights in Advance 

According to CheapAir’s “When to Buy Flights” guide, the best time to purchase tickets on most domestic flights is between 21 days and six months in advance, and the lowest price-range occurs between 52 days and three months before you plan to travel. You can sometimes find some last-minute deals and specials on airfare, but it’s better not to risk a high-priced ticket when trying to budget for your vacation. 

Book Plane Tickets One at a Time 

Passengers on the same flight often pay different prices for seats in the same section of the plane for a variety of reasons, but one reason is that many airlines group seats into price buckets. Unfortunately, if you book tickets in a bundle, it will only place you within these individual buckets unless you’re forced to separate. If you’re okay sitting apart from your spouse, book your tickets separately! If your kids aren’t old enough to sit by themselves, you can book two tickets at a time for you and your spouse to each sit with a kid or two but on separate parts of the plane. 

Pack Your Own Snacks 

It’s no secret that airport food is expensive! If you can manage to pack snacks for the airport and plane ride(s), you’ve already managed to shave a few dollars off your expenses! The safest way to ensure that airplane snacks aren’t confiscated by TSA is to bring pre-packaged items in your carry-on. TSA also allows parents or guardians traveling with children to pack extra fluid and liquid that exceeds the 3.4 oz limit. Check out a full list of items children are allowed to bring onto a plane here. Even if you’re traveling by car, it’s much more cost and time-effective to pack items for making sandwiches than it is to stop and buy food for every meal. 

For more ways to save, simply reach out to our team! The bankers at Peoples Bank & Trust are always happy to help you accomplish your financial goals, especially when they’re as fun as a summer vacation! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

It’s the question that every household asks. What can I do to cut my monthly costs? And it’s a great question! No one wants to spend unnecessary money when there are mouths to feed and basketball uniforms to pay for. While you can tighten the budget by setting strict guidelines for yourself, your experts here at Peoples Bank & Trust have a few more realistic ways to lower monthly bills. 

Plan Meals Ahead of Time 

At first glance, planning meals ahead of time may not sound like it has anything to do with your finances but trust us – this can make a huge difference! When you plan meals ahead, you can write down the list of ingredients you need at the store that week. Taking a list to the store can help you cut down on wandering down the aisles and picking up food you don’t need. While getting groceries, you can also choose the store brand instead of the name brand! Lastly, having a plan in place for meals, with all the ingredients to cook them, will help you avoid eating out or ordering to your door. This saves you from spending extra cash on delivery fees, tips and expensive food. 

Refinance Your Mortgage 

Chat with one of our mortgage lenders to refinance your mortgage. We can give you options to try and lower your interest rate which can save you hundreds of dollars every month. The better your credit score, the better your interest rate will be. You can also check out our mortgage calculator to get an idea of how much you can save by lowering your interest rate just a little bit. 

Bundle Your Bills 

Bundling is when you purchase multiple products or services with a company to get a discount on each product. You can bundle with almost anything if you look into it! For example, most insurance companies will let you bundle services like home and auto insurance. You can also bundle: cable and internet, different TV streaming services (like the Hulu, Disney+ and ESPN+ bundle) and more. 

Set Up Automatic Payments 

We can’t stress this enough! Not only do many companies offer a small discount for setting up automatic payments, but it’s a great way to avoid late fees. That way you aren’t paying additional money every month that you didn’t budget for. We encourage you to check out the discounts for your wireless carrier, most will save you $5-$10 for automatic payments! 

Keep Track of Your Transactions 

Whether you do paperless banking or receive your monthly statement by mail, it’s easy to forget how costly everyday expenses are. Be sure to check those monthly statements to track how much you actually spent, instead of going off your own assumptions. We tend to think we spent less than we really did! You should also check individual transactions from throughout the month to be sure you don’t have any unwanted subscriptions. One way companies lure you in is by giving you a free trial, only after you give your credit card information, so you’re automatically charged after the trial. People often forget to unsubscribe if they weren’t happy with the free trial which is a really easy way to lose money. 

If you need more help managing your finances, check out other tips in our blog or contact us to chat. We’re here to help you save money and build your wealth to provide the future you want for your family. 

Spring is the perfect season for fresh starts, personal growth and positive changes. This season, along with the loads of spring cleaning and organizing, consider making your finances a priority. A great first step is to read through this practical guide to saving money so you’re ready for summer! 

1. Prepare for the heat by making sure your cooling system runs efficiently. 

Summer is on its way which means you’ll be cranking the AC before you know it. The best way to cool your home affordably is to schedule regular maintenance for your cooling equipment. Before the temperatures rise, you can make sure that your cooling system is running correctly and you’re not overpaying because of a leak or other issue. 

2. Revisit your budget. 

Something many people often forget to do is adjust their budget periodically. Life changes and so do your expenses, so make sure your budget matches your current stage of life. If there’s been an addition to your family, you’ve moved to another apartment or home or are starting to save for a new car, your budget should reflect those changes. 

3. Contribute to your emergency fund. 

Whether you’ve had an emergency fund for years or haven’t started one, it’s important to continue adding to it over time. You never know when unemployment or times of financial crisis may hit, so the more you decide to save for emergencies, the better. 

4. Make transferring money to your savings account automatic. 

A common issue that individuals run into is either forgetting to contribute to their savings each month or skipping it to avoid transferring money. By automating your savings, you’re contributing to the account without even thinking about it.  

5. Focus on getting rid of your debt. 

Contributing to your savings can seem difficult if a big portion of your income is going towards paying off debt. Getting rid of debt can be a big hurdle in the way of contributing to your savings, so it’s smart to make being debt-free a priority. Once you no longer have those monthly payments, you can put a much larger portion of your income towards your savings account. 

6. Reward yourself for reaching goals. 

Motivating yourself is easier when there’s a reward waiting for you once you reach your goals. Whether you’ve been eyeing a new item of clothing or want to go out to eat at a nice restaurant, treating yourself occasionally is a great incentive. Set a goal every month with small rewards or a long-term goal with a larger reward. 

This spring and summer, make it a goal to contribute to your savings account as much as possible. If this past year has taught us anything, it’s that you never know what’s coming and how it could affect you financially. To learn more about how we could assist you in your financial journey, contact Peoples Bank & Trust today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender