Holiday Films & Money (Or how to turn heart-warming movie classics into a financial management class)

Yes, it is the holiday season – time for family, friends, warm-tidings and good cheer. Well, since we are a financial institution, we thought it might also be an appropriate time to point out some money management advice viewers may glean from some of the most famous holiday films: It’s a Wonderful Life, A Christmas Carol, The Grinch Who Stole Christmas and Elf.

1. Treat everyone with equal respect

In It’s a Wonderful Life, the movie’s villain Mr. Potter sticks it to poor George Bailey, only to see George overcome his troubles. Whether you are dealing with others in the business world or in your personal life, treat everyone with the respect and dignity you desire for yourself.

2. Cherish what you have

When things go south for George Bailey, he wants to end it all. Thanks to his guardian angel who shows him what life would be like without him, George sees the light. Remember, almost all financial problems are short-term. Things will turn around over time, with smart money management and positive thinking (a guardian angel helps, as well).

3. Be your elf

In the holiday classic “Elf,” Buddy never changes from his kind, helpful self, no matter what obstacles he faces. In the end, Buddy’s Christmas spirit shines and helps to save the day. It is important for everyone to be true to yourself. Do not spend over your head just to impress others. Maintain a solid budget and remember to allocate something for yourself and reward yourself for attaining your savings goals.

4. Surround yourself with those you trust

George Bailey makes a huge mistake by trusting goofy Uncle Billy with the bank’s money. No matter how close they are to you personally, make sure they are smart with money and ultra-trustworthy before delegating important financial matters to anyone.

5. Giving is far better than receiving

That miserable miser Ebeneezer Scrooge found out this lesson the hard way. He had to be scared nearly to death before he realized the joy one finds when they give to others – especially those in need (right, Tiny Tim?).

6. True happiness has nothing to do with money

Just as the Grinch found out when all those Whos in Whoville sang cheerfully – even without any gifts or toys -- the true meaning of the holidays cannot be found in a gift box or a money envelope. The true gift comes from the heart.

Happy holidays from AltaOne Federal Credit Union!

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Trim Your Holiday Budget

Make a list – and check it twice: Santa does it. You should, too. Compose a shopping list for your family and friends. If you are on a tight budget, pre-determine how much you can spend for each person on your list.

Hunt for coupons: There are lots of online coupon sites – Groupon, Couponcabin.com and Retailmenot.com are just a few possibilities. Of course, there are lots of Black Friday and Cyber Monday deals, as well.

Avoid impulse shopping: You have your list. Stick to it. You probably do not need the complete set of lighted reindeer and elves for your front lawn.

Pre-paid cards can help you stick to your budget. Simply add whatever you can afford to the card, and use the pre-paid card for your holiday shopping.

Do not wait for the holiday season to do your holiday shopping. Keep your eyes peeled throughout the year for great deals. You may even be able to finish your shopping long before the shopping insanity even begins.

Like to go crazy with lights? If so, the electric bill may soar. Consider LED lights, which use 99 percent less energy than traditional lights.

Speaking of decorations … Purchase your knickknacks after the holiday. Most stores have clearance sales and you can find some great deals.

Choose plastic wisely: If you plan to use a credit card for holiday gifts and other expenses, do a little research into the best card for your needs. Financial institutions often offer credit card promotions to help with holiday shopping.

Delegate your dinner menu: Are guests visiting for the holidays? Planning to whip up a big holiday meal? Delegate various menu items to your guests to save on your food bill.

Do you have a creative flare? If so, you may consider some clever, hand-made items for those on your gift list. Oftentimes, a thoughtful hand-made gift is cherished more than expensive presents.

Draw names: It has become popular to draw names among family members in order to limit the number of gifts you may need to purchase.

Hit the garage sales: You may be able to find some terrific gift items at garage sales.

Save on postage: Anyone in your family have a flare for technology? You may consider creating a holiday web page with family photos and a holiday greeting. Then send a link via social media or email. This could potentially replace your holiday cards and save a bundle on postage and cards.

Spend a few moments researching cost savings items online. You will find a bunch of ideas that may save you a ton of money.

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Savvy Credit Card Hunting

There are scores and scores of credit cards, and most consumers – especially those with good credit – receive scores of credit card offers.

How does one weed through the mountain of offers to find the best card for their needs?

There are credit cards that offer balance transfer deals … low interest cards … cash-back cards … hotel/travel points cards … retail rewards cards … gasoline points cards … air miles cards … pre-paid debit cards … business cards … student cards …

We’ll stop before your head starts to spin.

Savvy credit card shoppers determine the best card for their spending habits.
Certainly, one must examine interest rates, fees and balance transfer options. The credit card rewards program often distinguishes it from other cards.

Consider your everyday purchases and spending patterns. Ask yourself:

• Do I travel frequently?
• Do I stock up on groceries?
• Do I pile up the miles on my car?
• Do I enjoy sports, concerts and other events?

If you currently own a credit card, scan your statement. What are some of your more frequent or costly purchases? Understand your spending habits. This helps to determine the type of credit card rewards program that fits you best.

Reward Your Spending Habits

Those who take advantage of the credit card rewards offers can reap some major benefits. Redeem points in exchange for a long list of products and services that include electronics, housewares, clothing, books, jewelry and much more. Use points for hotel stays, rental cars— or you may even be able to receive cold hard cash.

Some cards, such as AltaOne’s Visa Platinum Rewards card, also allow retailers to provide additional deals for card holders.When searching for the perfect card for your needs, some other benefits — in addition to rewards points -- may include:

• No annual fee
•  Low fixed rate
• A 25-day grace payment period
• Worldwide ATM access
• Travel and emergency assistance
• Auto rental insurance
• No cash advance fee
• No balance transfer fees
• Full limit available for cash advance at the same interest rate
• A 14-day grace period (some cards will increase your rate if payment is made after due date)

Visit altaone.org for more information on our Visa Platinum Rewards card to see if it the perfect card for your needs.

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Is an AltaOne Credit Card Right for Me?

For members disciplined about paying bills promptly, a credit card is a great way to improve how you rate as a prospective borrower. Without a good or excellent credit score, your interest costs may wind up higher on future loans.

As with so many products these days, there are hundreds of different credit cards. Since this piece of plastic plays such a pivotal role in your personal finances, it is worth taking the time to figure out which card is best.

One option may be to sign up for a credit card through a credit union such as AltaOne. Here’s a look at why that may be a good path to take.

Lower fees
Credit unions are not-for-profit organizations, meaning any money they earn ends up getting funneled back into the institution to benefit members, either through lower interest rates on loans or higher dividends on account balances. Because their primary goal is to serve its members, many credit cards issued by credit unions charge lower fees and fewer penalties.

A few years ago, Pew Charitable Trusts released a study showing that the median annual fee for a credit card issued by a credit union was $25, compared with $59 for those supplied by other types of financial institutions. Some cards issued by credit unions don’t carry any annual fees.

Better rates
Uncle Sam prohibits federal credit unions from charging most borrowers more than 18% in interest on debts. Most other types of financial institutions aren’t limited on the annual percentage rates they can set, with some APRs hitting 24% or higher. A recent survey of rates shows holders of credit union-issued credit cards on average saved about 10% on interest costs compared with customers who used cards issued by other financial institutions.

Quick access to help
Credit unions members are the owners of the organization. In the eyes of credit union managers, therefore, it is crucial to foster good ties with members. As such, you will likely find excellent access to educational resources and highly responsive representatives since they typically focus on providing quality customer service. First-time credit card holders may find these added benefits especially useful if they’re brimming with questions about how to use their new card.
Wherever you decide to sign up for a credit card, be sure to do your homework beforehand. While credit cards can help you improve your credit score and develop smart spending habits, they can also hurt you if not used properly.

Please contact AltaOne at your convenience to discuss our valuable credit cards.


Tony Armstrong, NerdWallet

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Share Certificates Deliver Predictably Strong Returns

A share certificate is usually more rewarding in returns than a traditional savings account, and less risky than other investment options. Share certificates may be a good fit for investors seeking strong returns without the potential for loss that comes with stocks and bonds. For those new to share certificates, here is a primer on what they are and who might consider one.

Share certificates 101

Unlike a regular savings account, which allows penalty-free withdrawals, a share certificate requires that the money goes untouched until the certificate matures or reaches the end of its term – often from six months to five years. A key advantage of certificates compared with regular savings accounts is that certificates accumulate a predictable, locked-in return in exchange for leaving the funds alone, whereas the interest paid on regular savings can vary.

Like savings accounts, the National Credit Union Administration (NCUA) insures share certificates for up to $250,000. As long as you have more than $500 to invest and are comfortable not having access to the funds for a period of time (or paying penalty fees if you withdraw funds early), a share certificate can be a good way to put money to work.

Who should use share certificates

Share certificates are among the highest-yielding government-backed investment options available. Longer-term investments with larger sums typically provide the most advantageous ways to use share certificates. If an investor needs to withdraw money before the maturity date, penalty fees may apply. If you do not have an emergency fund, investing too much in a share certificate can be risky. For those with only a little cash tucked away, a regular savings account may be a better choice. While these pay lower interest rates, there are generally no withdrawal penalties.

The limited risk makes share certificates an appealing option for financially comfortable and retired investors. For those with the ability to allocate assets across a variety of investments, share certificates provide a high-yield savings product. As investors age, experts advise reducing risk to protect accumulated wealth.

Making the most of your money

Retired and wealthy investors who have more flexibility with funds may consider spreading assets across several share certificates with different maturities, employing a strategy called laddering. As each share certificate comes to term, reinvest the funds in another certificate to maintain a steady stream of interest income.

If commitment to a long-term share certificate is a concern, especially with prospects of interest rates rising in the not-too-distant future, consider a bump-up account, which allows the investor a penalty-free opportunity to raise the interest rate once during an 18-month term, or twice in a 30-month term certificate.

If market conditions make you nervous, relatively risk-free share certificates may make it easier to relax as your savings earn interest.

Visit altaone.org for more information on our term share certificates.

Cait Klein, NerdWallet

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Get Rich Quick

Want to become stinking rich? Of course, you can save your money in an AltaOne account and invest wisely with our various products. Or -- you can try to emulate the habits of the rich. We explored the World Wide Web to find data on what differentiates the wealthy from the not-so-wealthy. Here are some of the more interesting findings:

• The wealthy eat healthy — 70% eat less than 300 junk food calories per day.
• The wealthy set goals — 80% focus on accomplishing some single goal.
• The wealthy stay in shape — 76% exercise aerobically four days a week and 57% pay close attention to their calorie intake.
• The wealthy like to learn — 63% listen to audio books during their commute.
• The wealthy are thoughtful — 80% call their family and friends to wish them a happy birthday.
• The wealthy are goal-oriented — 67% have written goals.
• The wealthy avoid the television — 67% watch one hour or less of TV per day ...

... and they really avoid mindless television — just 6% watch reality TV.

• The wealthy pass on their habit to their offspring — 74% teach their success habits to their children.
• The wealthy are always learning — 86% believe in lifelong educational.
• The wealthy are readers — 86% enjoy a good book on a regular basis.
• The wealthy write down their plans — 81% keep a daily to-do list
• The wealthy like their jobs — only 6% are unhappy because of work.
• The wealthy are realistic — just 6% play the lottery on a regular basis.
• The wealthy floss regularly — 62% do so every day.
• The wealthy are optimistic — 98% believe the American dream is still possible.
• The wealthy are into people — 68% love meeting new people.

Here are a few more ...

• Most wealthy folks do not carry high credit card balances.
• The wealthy save for their seniority, and they usually start saving for retirement when they are young.
• Wealthy people set up automatic savings programs so they do not have to think about plopping money into a savings account.
• Many wealthy folks are early risers, with a high percentage accomplishing more before 8:00 a.m. than many people do all day.

We hope this blog helps to put all our members on a path to their own pot of gold. A good investment advisor may help, as well.

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High Tech Products of the Not-so-Distant Future

AltaOne members can now access some of the most cutting-edge technological tools to help manage their finances -- MSC Online, mobile apps, BudgetPro, BillPayer, Popmoney, etc. Outside the AltaOne world, technology continues to explode. Products such as Google Glass -- the amazing eyewear that conducts Google searches, snaps photos and videos and tracks trending news -- are already here. 

Let us take a gander at what other items are on the horizon that are destined to "wow" the world.

The "Eye-Witness"

A portable retina scanner may soon be available to help fight identity theft and protect your personal security. The tiny device is only 5" long x 3.5" wide. The scanners can be used by financial institutions to identity members conducting transactions in an efficient and unassuming manner. Look for these devices to really take off when the technology is incorporated into a smartphone.

The Six-Million-Dollar ... Finger?

How annoyed do you get when you realize the beer bottle is not a twist-off and you cannot find a bottle opener? Introducing "bionic fingers."

These robotic devices, which are still just prototypes, simplify such tasks as peeling a banana and unscrewing bottle caps. Developed by MIT researchers, users wear the "supernumerary robotic fingers" on the wrist. The device is equipped with two "fingers" that move in-sync with the real fingers.

Too Much Scale?

As if stepping on a scale is not difficult enough for some folks. Now there is a scale that not only displays your weight -- it also discloses your body mass index, heart rate and fat mass.

The Withings Smart Body Analyzer is quite the know-it-all. The $150 device also knows the indoor air quality and room temperature.

We will be far more impressed if the scale can tactfully recommend the right diet for users, as well.

Holographic Telepresence

Just when we learned how to use video conferencing tools, the next incarnation has already arrived -- holographic video conferencing.

"Holographic telepresence" transmits a 3-D moving image to each destination – giving the appearance that you are actually in the room with your associates.

The technology already exists for other purposes. For example, it has recreated deceased rapper Tupac Shakur's image for a music festival.

The Polish company Leia (named after the Star Wars' Princess Leia), has produced the Leia Display XL, which projects images onto a cloud of water vapor. This technology is destined to achieve widespread popularity. Expect to see it marketed within about a year.

We live in such intriguing times.

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Late Summer Vacation Savings Tips

So— you planned to take a summer vacation, but the weeks are zooming by and your children are already preparing to return to school in a few weeks. Yikes! Summers seem to get shorter every year.

It is not too late to plan for an inexpensive, last-minute vacation. During the final weeks of the season, when most people are heading back to school or work, hotels and airlines often scramble to fill spaces, making it easier to find low-cost lodging and fares.

Here are some affordable destinations that can be fun for the whole family from mid-August into September.

Hiking and Camping

Visitors to the Grand Canyon or Yellowstone National Park at this time of year can still enjoy peak season weather and lighter than normal crowds. Want to save some extra cash on accommodations and do not mind the elements or hob-nodding with nature? Book a campsite. But do it soon: even in quieter periods, campgrounds in popular areas fill quickly.

Theme Parks

The cheapest time to go to Disneyworld is the last week of August, right before Labor Day, according to travel website Priceline. For those looking for California destinations, theme parks such as Disneyland, Knott’s Berry Farm, Universal Studios and Six Flags are also a bit quieter this time of year, making it easy to avoid long lines and enjoy more rides.

Urban Sightseeing

Pre- Labor Day visitors to New York City may be able to cut costs by participating in Restaurant Week and taking in free outdoor concerts. For those seeking a west coast destination, consider Seattle in September, when the hotel rates may be more affordable.

Remember to research a trip before booking arrangements. While hotels in Italy offer rock-bottom prices in August, many stores and tourist attractions are closed at this time of year because of the typically steamy weather. Caribbean cruises cost less too, but August and September tend to be peak season for Atlantic hurricanes. Worried about risks? Buy travel insurance for some peace of mind.

Spending Strategies

Watching airline ticket prices rise and dip can make you feel like a nervous investor glued to stock market. Unlike equities, applying a little strategy can lower costs. For instance, off-season fares to popular vacation spots are often cheaper in August and September compared with peak season, especially for flights on Tuesdays and Wednesdays.

If you have a big family and are flying on an airline with assigned seating, consider splitting into smaller groups and sitting in different sections. Some flights have only a few low-priced seats and a search for a large block of seats at once may exclude a few that are discounted. Try searching for one or two seat blocks, instead. On arrival, take public transportation instead of a taxi or a rental car to save more money.

Being more deliberate about culinary affairs (i.e., food) can help keep a budget intact while still providing chances to enjoy local flavors. To cut back on food costs, consider packing some meals and dining out only once a day. Stay aware of your spending so you have plenty of funds for your vacation activities.

The upside of off-season

Taking a late-season vacation and spending carefully can reduce costs and relieve concerns about mounting credit card balances that await you when the excursion ends. To take the edge off of next year’s summer fun, put whatever has been saved by not going at a peak time into a savings account. That can also enhance feelings of financial security, especially with regular contributions for the rest of the year.

If you do need some extra funds for your late-summer trip, consider an AltaOne Getaway Loan. The interest rate is significantly more attractive than most credit cards for those who would like to borrow money for their summer vacation.

Claire Davidson, NerdWallet

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The Credit Union Advantage

Nearly one-third of all Americans belong to a credit union. Frankly, we were interested to find out why that figure is not significantly higher. After all, credit unions seem to offer significant advantages over many banks: lower interest rates on loans; higher yield on deposits; low or no service fees; active participation in the community. The list is lengthy.

Probably the only advantage national banks continue to have over credit unions is accessibility. The major bank brands simply have more branches. However, credit unions have made great strides with their online services such as BillPayer, mobile apps, e-statements and personal financial managers. With all these online options, the need for face-to-face banking has diminished. Financial institutions that offer a solid combination of online and person-to-person should be equipped to handle the vast majority of member needs.

Let us dig a little deeper. 

Account fees

This may be the biggest knock on banks. They tack on whopping fees for items such as overdrafts and monthly maintenance. In fact, the average monthly account maintenance fee has leaped by 18 cents to $12.26.  That adds up to about $150 a year. Bank overdraft fees average more than $30.  Another fee that generates a ton of income for banks is out-of-network ATM charges, which average close to $3 per transaction.

Conversely, over 70% of the largest credit unions provide free checking. Some credit unions charge overdraft fees that cost $20 to $30 per incident. The average monthly credit union maintenance fee is between $2 and $5. However, credit unions typically do not charge the fee unless the account dips below $30 or less.

Clearly, consumers seeking to avoid high bank fees should consider moving their money to a credit union.

Interest Rates

With interest rates hovering around the puny to sub-puny level for quite some time now, it is difficult to find any institution that offers a high-yield rate that will help your money flourish. That said, credit unions clearly hold an advantage over national banks. You are far more likely to find higher yields on products such as CDs, money markets and savings accounts from credit unions. The low interest rates are good news for those shopping for cars, homes and credit cards. Loan products remain at amazingly low rates across the board. Once again, credit unions usually hold an edge over banks when it comes to loan rates.  

Customer Service

According to the most recent American Customer Satisfaction Index (ACSI), the overall customer satisfaction level for banks is 78 - a one-point jump over the prior year. Banks score the highest on "courtesy and helpfulness of staff," with a 91; and they score the lowest on "competitiveness of interest rates," with a 73.

Credit unions score another victory over banks in this category. The most recent ACSI report rates credit union customer satisfaction at an 85 -- a 3.7% rise over the prior report. Like banks, credit unions score the highest on "courtesy and helpfulness of staff," with a 93; and the lowest on "number and location of branches," with a 71.

With all this evidence in favor of credit unions, one has to wonder how banks have been able to maintain such a market share advantage. 

If you are reading this blog, you are most likely an AltaOne member. Here is your call to action: spread the word. Tell your friends, family members, co-workers and neighbors about the credit union advantage.  You do not have to pester them. Nevertheless, when the topic arises about a car loan, or mortgage or credit card ... or anything that pertains to the banking world ... put in a good word or two for credit unions and AltaOne. We appreciate the plug.

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Summer Financial Training School

Are the little entrepreneurs in your home working extra hard this summer to earn money with their lemonade stands and summer jobs? No matter what their ages, this may be the perfect time to teach your children about budgeting. Below are some valuable money management lessons you can provide your youngsters.

For younger children

Money As You Grow suggests children split their allowance into three labeled jars: one for savings, another for sharing and one for spending. If your youngster has not yet learned to read, try differentiating the jars with colored lids or have your child draw pictures that represent each jar. For example, if your daughter wants ice cream sometime this week, label the spending jar with an ice cream cone. The savings jar could have a picture of a more expensive toy or book. The sharing jar could have a picture of a gift she would like to give to a friend.  

When the ice cream truck rolls around, you can help them count their spending money and select a treat they can afford. Once your children have saved enough money for their more expensive item, you can take them to the store.

For preteens

Preteens should have their own savings accounts and make regular deposits. They should start planning long-term savings goals. Instead of saving for the next toy, they could set their sights on a tablet or a new outfit. To save effectively, you may need to help determine how much money must set aside to reach their financial goals in a reasonable timeframe.

Help your preteens set up a spending and saving journal. They may be tech-savvy enough to use some features of an online personal financial manager such as AltaOne's BudgetPro. If they feel they are not reaching their goals fast enough, this will help identify ways to trim expenses.

For teens

Teens will have more income and expenses to track. They will likely earn and save more money from part-time jobs or bigger allowances. They also have greater responsibilities and expenses -- gas for the car, movie tickets, beach trips or summer swimsuits. A detailed budget can help teens avoid over-spending and fail to reach their savings goals.

As parents, clearly communicate which expenses you will cover and stick to the plan. If you bail out your children every time they whine for cash, they will not learn to decide between "wants" and "needs" as they get older and must make crucial financial decisions. Encourage your teens to closely track their income, expenses and savings in a journal or online financial manager.

Your teens' saving goals should increase as college approaches. Spend some time researching the cost of attending college. Be transparent about what expenses you can cover, factor in any financial aid available and help them to come up with savings strategies for the rest of the costs.   

Cherise Fantus, NerdWallet

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Don't Let Student Debt Hamper Your Home-Buying Experience

We have all read the harrowing statistics about student loan debt. College grads enter the real world with an average of $34,000 in student loan debt. According to the Economic Policy Institute, the unemployment rate for recent graduates is 8.5%, and 16.8% are underemployed. With all these gloomy statistics, how can a debt-riddled Gen Y consumer even consider buying a home?

Cheer up, Millennials! There is hope. Check out these tips to help you to qualify for a home loan:

1)  Grow Your Credit Score
The best way to build a strong credit score is to pay your bills on time. If you have credit cards, keep a low balance. Try not to exceed 30% of your limit. It actually helps to maintain some credit card debt, if you want to improve your credit rating. Therefore, you may not want to pay off all your cards at once. Instead, keep an affordable balance, with manageable payments. Lenders often view this as "healthy debt."

You should also beef up your credit file. Having no credit score is sometimes worse than having a weak score. Avoid the "thin file" -- someone with no or very few items on their credit record. Some lenders offer "credit builder" loans specifically designed to help young consumers to build credit. Whatever lending options you choose, make sure you maintain a reasonable, affordable balance.  Also remember to check your score. Several agencies provide free credit reports. It helps to know how you rank with the credit bureaus. 

2)  The Debt-to-Income(DTI) Balancing Act
Lenders not only look at credit score — they pay close attention to the debt-to-income ratio, which compares your overall debt to your income. You should shoot for the lowest possible DTI ratio. If it is over 50%, you are carrying too much debt. If you have a high DTI ratio and can only make minimum payments, then lenders will hesitate to approve a loan that you may not be able to afford.

The best way to improve your DTI ratio is obvious— increase your income. Easier said than done, right? If you have a tough time making ends meet with your current salary, put in some overtime, take a part-time job or try to put your hobby to good use. Can you play an instrument? Maybe you can give guitar lessons. Of course, you can also ask for a raise, depending on your standing with the company.

The next best way to reduce the DTI ratio is to pay down your debt. If you apply a larger chunk of your income toward your debt, your credit rating will take a temporary hit. However, once your DTI ratio improves, your rating will sparkle, as well.

3) Consider Student Loan Payment Options
If your student loan payment still weighs you down, you may consider some alternatives. It may be possible refinance or consolidate your student loans. In addition, if you have federal student loans you may qualify for an income based repayment program. 

4) Pay Yourself
As you begin to control your debt, you will see your financial cushion grow. Start paying yourself. Determine how much you can reasonably save out of every paycheck -- and do not touch that money. As your savings grows, you might consider plunking it into Certificate of Deposit, which earn a greater return than a standard savings account.

5) Get Pre-Approved
As your savings account flourishes, visit your local AltaOne location and ask about a pre-approval. Pre-approvals help in several ways. You learn how much the financial institution is willing to lend, and you educate yourself on closing costs, down payments and other aspects of the home-buying process.

6) Patience, Patience, Patience
Life is a marathon, not a sprint. A house is likely the most significant purchase you make throughout your life. The responsibility of mortgage payments requires financial preparation and maturity. 

Good luck—and happy house hunting.

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Signature Loans — The Simple, No-Hassle Lending Solution

Money does not grow on trees. However, there is one way to obtain money immediately that is almost as quick as plucking it from a branch — signature loans.

Signature loans (aka, personal or unsecured loans) offer borrowers funds for any purpose: vacations, home or vehicle repairs, to pay off expenses, emergencies, etc. The primary benefit of a signature loan is there is no collateral required. In addition, the application and approval process takes just a few minutes.

Many financial institutions offer signature loans. Consumers may usually borrow as little as $500, and up to $25,000, depending on the credit union or bank. Terms are typically up to one year.

Signature loans differ greatly from payday loans, which have become a last-resort option for some consumers who need fast cash. There are several benefits of signature loans over payday loans:

• Signature loan terms may be up to one year.  Payday loan terms usually max out at one month (extensions are considered for new loans), and are usually two week terms.
• Signature loan fees and interest rates are significantly less than payday loans.
• There is no security or collateral required for a signature loan. Payday loans require income verification and a pledge to re-pay by the next paycheck.
• Timely payment of signature loans can help to improve your credit history. Payday lenders only submit negative payment information to the credit bureaus, so prompt payment of payday loans does not improve one's credit rating.

The interest rate on a signature loan is slightly higher than a secured loan because there is no collateral offered to back the loan. Oftentimes, even consumers with fair or poor credit can obtain a signature loan because the financial institution may adjust the rate according to the applicant's credit.

Some financial institutions such as AltaOne create uniquely packaged signature loan products. For example, AltaOne offers special holiday loans or summer getaway loans to help its members seeking extra financing for vacations or holiday expenses.

The bottom line— if you are looking for a "money tree" to take care of a wide variety of financial needs, look no further than AltaOne's signature loan product.

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Budget for Summer Vacation: Plan Ahead

Despite challenging economic times, most Americans will still venture out for some fun in the sun this summer. Whether planning a vacation abroad, an adventure in another part of the country or some local beach time, it is always a drag to pinch pennies while traveling.

It is too easy to fall into the credit card trap while on vacation. Budget well before you vacation to prevent the stress of soaring credit card balances. Check out these smart vacation-planning pointers:

Plan Ahead

Plan early and set aside a little less than 10% of your annual discretionary income towards your vacation fund. Find a balance between the cost of traveling to your destination and the cost of enjoying yourself while you are there. It is easy to fantasize about all the fun vacation activities, but forming a solid budget may be a challenge. We do not always foresee the jellyfish sting, the lost sunscreen or the mini bar tab — among other budget-breaking items. Use a travel calculator ahead of time to determine a real sense for travel costs, including some of the forgotten amenities. It is always best to “over-budget” and factor in unanticipated expenses before you hit the road. That way, you may be pleasantly surprised when you return home with extra cash.

Open a sub-share savings account: a special account reserved for your vacation savings contributions. You can also supplement your vacation savings and trim your vacation expenses by reserving your credit card rewards for travel costs.

Daily Cash Allowance

Anyone can write out a vacation budget, but it can be quite a feat to stick to it once you are in paradise. Plan out how much you want to spend each day on food, drink and activities, then place it in separate envelopes labeled for each day of the trip. Many tourists are tempted to spend foreign currency carelessly, due to its unfamiliarity. Also remember to factor in foreign exchange rates. When traveling abroad, mark each envelope with the equivalent USD amount, keeping track of each purchase. You can still keep a credit card handy in case of emergencies, although it is much better to have an emergency fund already established.

Don’t be the Giving Tree

Shopping abroad is fun. We all love to spoil our family and friends. They will probably appreciate it more, though, knowing you did not break the bank on gifts. Plan out your souvenirs ahead of time and make a list of how much you plan to spend on each relative or friend. Take advantage of local markets, where you can often negotiate the price. Beware! Souvenir shops and malls often jack up prices for tourists. If money is extra tight, you can often find specific discounted souvenirs -- like Mickey Mouse ears or Margaritaville shot glasses -- online and order them to arrive when you get home. 

Eat Local

Whether flying or driving, avoid wasting precious money on inflated airport and rest stop snacks. Pack your own snacks from home. Once you arrive, immerse yourself in the cultural cuisine. Eating local fare or street food can help you avoid the over-priced meals at commercial and hotel restaurants. Also, be sure to check out “Happy Hour” prices and other specials at the local restaurants and bars.

Pack Smart

You may forget some toiletries or other necessities. Research the weather and your activities -- and pack appropriately. If you spend your vacation funds on new sandals or sweatshirts, you will have less money for snorkeling, site seeing and souvenirs.

Make your vacation fun and hassle-free. Do not bust your budget during your summer vacation, and you will return debt-free, relaxed and recharged.

Cait Klein, NerdWallet

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Considering Some Home Improvements? HELOC At This!

If you have enough equity in your home to qualify, a  home equity line of credit (HELOC) can be a convenient way to borrow money to fund a major home renovation.

Of course, what you do with the money from a HELOC is entirely up to you. In addition to home enhancements, you can use your HELOC to pay off high interest debt, college tuition or medical bills, renovate your bath or kitchen, take a vacation or pay for other expenses. 

What is the difference between a home equity loan and HELOC?

Two of the more popular ways to borrow against your home’s equity are with a HELOC or with a home equity loan (HEL).

A HELOC works more like a credit card than a HEL, because you have access to money, but you are not required to use it. The credit union approves you for a specific loan amount, but does not give you the money in a lump sum. 

With a HELOC, you only use the amount of money you need, when you need it. A HEL, on the other hand, requires you to take out a lump sum of money and begin payments immediately. This makes a HELOC a more flexible option.

A HEL comes with a fixed interest rate, while a HELOC comes with a variable rate, which means your payments can change if interest rates rise or fall. 

Why should I get a HELOC?

If you know exactly how much money you will need, a home equity loan could be a smarter choice. If you are unsure how much money to borrow and want to use the funds as needed, then a HELOC is the better choice. Either way, using both a HEL and a HELOC to pay for major expenses can make much more sense than using credit cards or a personal line of credit. The interest rate on the loan should be far lower than credit cards because you are using your home as collateral. Most credit cards come with variable interest rates of more than 12.9%, while the average rate on a HELOC is often significantly lower. This means you can end up saving big time on interest over the years. 

The interest you pay on the loan may be tax deductible. You are able to deduct the interest on a home equity loan or line of credit up to a loan of $100,000, according to the IRS. This is not the case with credit cards or personal lines of credit. When it comes time for a tax refund, you might be in for a pleasant surprise. 

Using a HELOC for Home Improvement

Many consumers use a HELOC for home renovations to help enhance the value of their home. The improvements will also make your home more enjoyable for your family. Consider how the project's cost compares with the potential increase in your home value. Some improvements offering the best bang for your buck may include: a minor kitchen remodel, a garage door replacement, a deck addition and converting an attic to a bedroom, according to Remodeling.com’s 2014 Cost vs. Value report. 

As with any loan product, always remember to factor in closing costs, the interest rate and the payment terms. It is important you shop around for the best rates and terms before making any decisions.

Of course, there is another significant reason why AltaOne members may want to consider a HELOC. From now through October 15, 2014, every new AltaOne HELOC qualifies our members for the amazing IMAGINE Sweepstakes, where you can win the Grand Prize of payments for a full year. 

Steve Nicastro, NerdWallet

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Happy Home Hunting

The median home price in the U.S. continues to creep higher in 2014. The number of homes for sale has been growing, as well.  What does that mean for house hunters? Simple. Now is a good time to shop for a new abode.

For those of you inexperienced in the world of mortgages, we have compiled some pointers that should help you avoid some real estate land mines.

       Focus on your credit

The biggest factor in your purchase power is your credit score. If you have a strong credit score, you will want to keep it that way. Do not make too many major purchases as you prepare to buy a new home. This could negatively affect your credit score. If your credit score is not so stellar, spend the months prior to home shopping whittling down your debt-to-income ratio. In other words -- pay off your bills and credit cards as much as possible.

     Get pre-approved

Take the time to visit your local AltaOne Member Service Center and ask about a pre-approval. This is an important step in the home shopping process. It determines how much your financial institution will lend you. During the pre-approval process, your credit union reviews all your financial information and determines how much of a mortgage you can afford. The pre-approval process saves you time and allows you to focus only on the homes you can afford.

·         Draw the lines

You would be surprised how frequently border disputes arise because neighbors do not know their property lines. Accurate property lines may also save you money on your property taxes.

·         The best time to buy 

Interest rates rise and fall. Property values skyrocket and plummet. There is never a perfect time to buy ... on second thought ... there is a perfect time to buy -- when you are ready. Stop hemming and hawing and trying to predict the market trends. When it makes sense for you and your family, then it is a good time to buy.

·         Save up for the down payment

There are several benefits to making a down payment of 20% or more. First off, you will not have to pay PMI (private mortgage insurance) if you put down at least 20%. PMI provides insurance to your lender in case of default. Lenders look more favorably at borrowers who provide higher down payments. In addition, if you make a 20% down payment, then you instantly have 20% equity in your new home.

·         Find an agent

Every city boasts and abundance of realtors. It is important to conduct your homework and find a quality, experienced realtor who is going to represent your needs.

·         What's it worth? 

An appraisal determines the market value of the home. Lenders use appraisals to help determine the loan amount. Consumers have a legal right to obtain a copy of the home's appraisal.

·         Check the foundation 

A home may look squeaky clean and brand new -- but the structure may not be sound. In California, earthquakes may have caused cracks in structural beams. Termites, water leaks and other hazards often cause hidden damage. A thorough inspection by a reputable firm is an important element to the home buying process.

·         Let the negotiations begin 

Your agent will help to recommend offers. Be fair. Base the offer on comparable home sales in the neighborhood, the condition of the home, extras such as a pool, etc. Remember, the sellers probably want to sell the house as much as you want to buy it.

There are many more aspects of home buying to consider, such as homeowners insurance, the local schools and much more.

Good luck -- and happy home hunting.

(Every new mortgage and HELOC funded through AltaOne Federal Credit Union through November 14, 2014 qualifies for the Imagine Sweepstakes and could win a year's worth of mortgage payments!)

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