4 t h Q u a r t e r 2005
INSIDE THIS ISSUE
• Book Review • Brain Teaser • Money Matters Cartoon • 10 Things... (cont.) • Loan Application • Building Wealth • Tomorro’s Millionaires • DebtConsolidation Loans • Who can join? • Loan Application • Current Rates Beginning September 1, 2005, anyone wishing to see his or her credit report is able to obtain a free copy at www.annualcreditreport.com. This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. "It is shocking how little Americans know about their credit," said John Danaher, president of TrueCredit.com. "Good credit is a cornerstone of your financial profile, enabling you to finance major purchases such as a home, education or car," he added. "Not knowing about your credit can expose you to higher interest rates, which translates into less money in your pocket at the end of the day." When you apply for credit, your credit scores help lenders determine whether or not you are willing and able to repay the loan. With a higher score, you qualify for better interest rates, higher credit limits, and more types of credit than you would with a lower score. Your score reflects the way you use credit, and there are no tricks or quick fixes to getting a good credit score. However, you can raise your score over time by demonstrating that you consistently manage your credit responsibly. Here are 10 things you can do to improve your credit scores. 1. Pay your bills on time. If you have a history of paying your bills on time, you’ll have an easier time getting a mortgage loan, car loans, and credit cards. Even if you’ve had serious delinquencies in the past, a recent history (24 months) of on-time payments carries weight in credit decisions. 2. Keep credit card balances low. High outstanding debt can pull your score down. 3. Check your credit report for accuracy. Inaccurate information on your credit report can be cleared up easily. Always contact the original creditor and the credit bureaus whenever you clear up an error, so that the inaccurate information won’t reappear later. 4. Pay down debt. Consolidating your credit card debt or spreading it over multiple cards will not improve your score in the long run. The most effective way to improve your credit is by slowly paying down the amount you owe.
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10 Things You Can Do to Improve Your Credit Score
Did you know that only 10% of Americans know their credit score? Those are the findings of a survey commissioned by TrueCredit.com, a Web subsidiary of the credit bureau TransUnion.
FOOD FOR THOUGHT
Someone's sitting in the shade today because someone planted a tree a long time ago. --Warren Buffett
IAEFCU Mission Statement:
Our Financial Institution was founded on the principles of: • Confidential, personalized service • Low loan rates and high savings rates • Education of our members in building financial security • Conservative management to preserve our members’ assets • Promoting a cooperative work environment for our employees.
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“Providing Financial Services since 1961” One Cross Island Plaza • Suite #106 • Rosedale, NY 11422 • Tel 718.525.8958 Automated Teller 718.525.8198 • E-mail intlaefcu@rcn.com • Web Site www.iaefcu.org
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Just For Grins
Banker's Woes
Before going to Europe on business, a man drove his Rolls Royce to a downtown New York City bank and went in to ask for an immediate loan of $5,000. The loan officer, taken aback, requested collateral. "Well, then, here are the keys to my Rolls-Royce", the man said. The loan officer promptly had the car driven into the bank's underground parking for safekeeping, and gave him $5,000. Two weeks later, the man walked through the bank's doors, and asked to settle up his loan and get his car back. "That will be $5,000 in principal, and $15.40 in interest", the loan officer said. The man wrote out a check and started to walk away. "Wait sir", the loan officer said, "While you were gone, I found out you are a millionaire. Why in the world would you need to borrow $5,000?" The man smiled. "Where else could I park my Rolls-Royce in Manhattan for two weeks and pay only $15.40?
Who is eligible to Join IAEFCU?
If you are already a member of IAEFCU you can continue your membership for life. Your immediate family members (spouse, children, siblings, parents, grandparents, stepchildren, step siblings, and adoptive relationships) are also all eligible to join our credit union. Your “household “ members (defined as persons living in the same residence maintaining a single economic unit) can join the credit union too. You can also join the Credit Union if you work for, or are a retiree of the following companies:
5 l Club ABC Tours
l Air France
l Aries International Inc. l Austrian Airlines
l Brookville Plaza Management, Inc. l Bvlgari Corporation of America l Cargo Airport Services, LLC
INTERNATIONAL AIRLINE EMPLOYEES FEDERAL CREDIT UNION One Cross Island Plaza, Suite #106 Rosedale, NY 11422
l KLM Royal Dutch Airlines l Kuwait Airways l Mindpearl US, INC.
l
l Emirates l Finnair l Inter-Jet Systems, Inc. l Inter-Jet Customhouse Brokers, Inc.
l Scandinavian Airlines System l Schenker Inc. l SN Brussels Airlines l Swiss International l Turkish Airlines l Thai Airways International
Place Stamp Here
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International Airline Employees Federal Credit Union Loan Rates - Effective 8/31/05
Loan Type Personal Share-secured VISA Classic Visa Platinum New Cars Max. Amt.$ 15,000 10,000 5,000 Amount on deposit 10,000 15,000 100% financing Term 60 mos 48 mos 24 mos 72 mos Revolving Revolving 36 mos 48 mos 60-72 mos 36 mos 48 mos 60-72 mos 36 mos 48 mos 60 mos 72 mos 120 mos 48 Mos 24 mos 48 mos 15-year repayment; one year adjustable 15-year repayment; one year adjustable 1-5 years 6 - 10 years 11 - 15 years 1-5 years 6 - 10 years 11 - 15 years Rate/APR% Without With autopay* autopay* 9.50% 9.25% 9.00% 8.75% 8.50% 8.25% 5.75% 10.90% 9.80% 6.00% 5.75% 6.25% 6.00% 6.75% 6.50% 5.75% 5.50% 6.00% 5.75% 6.50% 6.25% 6.50% 6.25% 6.75% 6.50% 7.25% 7.00% 10.75% 11.25% 8.85% 8.30% 9.00% ***Prime rate for 1st year ***Prime rate for 1st year 7.00% 7.50% 7.75% 7.50% 7.75% 8.00%
New Cars
80% financing
Used Cars
NADA Book
Boats Tuition Tax Payer Debt consolidation Home Equity Line of Credit Second Mortgage Mini Home Equity (fees apply)
80% financing 15,000 8,000 5,000 5-year draw; No closing fees No closing fees 100,000 100,000 100,000 100,000 100,000 100,000
(no fees)
* With automatic payments, .25% higher if not on automatic payment. ** Home Equity and Second Mortgage Loans: No Fees, except state-required mortgage tax, if applicable. Prime rate 5.50% as of 3/15/2005.
Dividend Rates – Effective 8/31/05
Account All Share Savings & IRA Share Savings Accounts Holiday Clubs Interest Checking* Basic Checking** Money Market Checking*** All Regular Share, Educational, ROTH & IRA Certificates (CD’s) $1,000 minimum deposit Terms $100 - $5,000 $5,001 - $50,000 $50,001 + $5+ $500 + No minimum $2,500 + 6 Months 1 Year**** 2 Years 3 Years 4 Years APR 1.343% 1.590% 2.428% 1.75% 1.00% 0% 1.50% 3.455% 3.941% 4.184% 4.281% 4.378% APY 1.35% 1.60% 2.45% 1.750% 1.005% 0% 1.510% 3.50% 4.00% 4.25% 4.35% 4.45% Credited Quarterly
Annually Monthly Monthly Quarterly
* Interest Checking has a minimum balance requirement of $500.00 to avoid a $3 monthly fee. ** Basic Checking has no minimum balance fees. *** Money Market checking has a minimum balance of $2500.00 to avoid a $3 monthly fee. **** Bump-Up CD: One member-initiated rate increase to current 1-Year CD rate during term of the CD. Applies to new CDs and renewals.
Dividend Rates are calculated on simple interest, day of deposit, day of withdrawal. Fees or other conditions could reduce earnings. APY is calculated as of 1/5/05. Penalties may apply for early withdrawal of funds.
All rates are subject to change without notice.
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Book Review
Freakonomics: A Rogue Economist Explore the Hidden Side of Everything By Steven D. Levitt and Stephen J. Dubner
Besides just having a fun name, we discovered that Freakonomics, the new book by economist Steven D. Levitt and New York Times writer Stephen J. Dubner, also serves as an entirely new and fun way to look at the world of economics. Hardly your slow and boring economy lesson, Freakonomics introduces readers to finance and numbers with real-world and vastly intriguing examples. From stories on the inner workings of crack gangs to cracking the myths about campaign finance, Freakonomics cleverly and descriptively defines standard economic functions in a way that everyone can not only understand, but vastly appreciate. (Not to mention that the book serves up vast portions of intriguing information about today’s culture.) From start to finish, Freakonomics is entertaining, bright and extremely clever. It touches on finance, deceit, clutter and, perhaps most importantly, how we view the world around us. And all the while, it brings about one central thesis: that if one asks the right questions, all the answers in the world are at our fingertips. All it takes is a new approach.
International Airline Employees Federal Credit Union
One Cross Island Plaza, Suite #106 Rosedale, NY 11422 TEL (718) 525-5903 FAX (718) 525-8958 Audio Teller (718) 525-8198 e-mail: intlaefcu@rcn.com website: www.iaefcu.org BOARD OF DIRECTORS A. John Harrison, President James Brennan, Vice President Robert Kramer, Treasurer Manfred Schlarb, Secretary Om Bhambri, Director Regina Kaler, Director Gerald Pinola, Director
Brain Teaser Q: What is the largest amount of money
you can have in coins without being able to make change for a dollar?
Answer on page 3.
Credit Union Holiday Closings: Fall office hours:
M-Thurs 9 – 5 and Friday 9 – 1. (These hours effective Labor Day through Memorial Day)
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November 24 & 25, 2005 December 26, 2005 January2, 2006 January 16, 2006 February 20, 2006
Please note that we will be closed in observance of the following holidays in the upcoming months:
Thanksgiving Christmas Day Observance New Years Day Observance Martin Luter King, Jr. Day Presidents Day
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10 Things You Can Do to Improve Your Credit Score
5. Use credit cards—but manage them responsibly. In general, having credit cards and installment loans which you pay on time will raise your score. Someone who has no credit cards tends to have a lower score than someone who has managed credit cards responsibly. 6. Don’t open multiple accounts too quickly, especially if you have a short credit history. This can look risky because you are taking on a lot of possible debt. New accounts will also lower the average age of your existing accounts, something that your credit score also considers. 7. Don’t close an account to remove it from your record. A closed account will still show up on your credit report. In fact, closing accounts can sometimes hurt your score unless you also pay down your debt at the same time. 8. Shop for a loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, based in part on the length of time over which recent requests for credit occur. 9. Don’t open new credit card accounts you don’t need. This approach could backfire and actually lower your score. 10. Contact your creditors or see a legitimate credit counselor if you’re having financial difficulties. This won’t improve your score immediately, but the sooner you begin managing your credit well and making timely payments, the sooner your score will get better. While these ideas won’t create a dramatic improvement in your credit score overnight, it will over time. Remember that it takes time to develop a strong credit profile, but once you’ve done it, you’ll find it easier to apply for credit.
Building Wealth
How smart people handle their money
There’s one universal secret that the wealthy know all too well and strugglers never accomplish: Pay yourself first. When any income comes your way, immediately take a portion, generally 10 percent, and put it into a savings account, brokerage account, mutual fund, or retirement account. Not only is this a good habit to encourage, it’s a forced and painless way to grow your wealth. While it may seem difficult at first, his discipline becomes easier and easier the more you do it.
Tomorrow’s Millionaires
Learning how to be a successful sales person is a key to lifetime prosperity. Have your child assist you with a yard sale. She can sell certain possessions that are no longer important in her life. Since she already dnows the positive aspects of the items she’ll sell, it will be easy for for her to feel comfortable pointing out their attributes. Not only will she earn money to save for the future, she’ll become comfortable with the process of selling, which will yield untold dividends in the years to come.
A:
being able to make change for a dollar. $1.19. 3 quarters, 4 dimes, and 4 pennies is the largest amount of coins you can have without
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LOAN APPLICATION
Apply via our website by entering www.iaefcu.org
MEMBER Account #
International Airline EFCU 718-525-5903 • intlaefcu@rcn.com (e-mail)
Complete the loan application
below and fax to (718) 525-8958
Amount Requested Purpose of Loan
Complete the loan application below, fold, tape and
drop in the mail or hand it into our Loan Department.
Collateral
PROOF OF INCOME REQUIRED. NOTICE: Married Applicants may apply for a separate account. Check the appropriate box below to indicate the type of credit for which you are applying.
J Individual Credit: Complete Applicant section. Complete the Co-Applicant section
as follows: (1) Information about your spouse if you live in a community property state (AZ, CA, ID, LA, NM, NV, TX, WA, WI) or (2) If your spouse will use the Account. K Joint Credit: Provide information about both of you by completing Applicant and Co-Applicant sections.
I am applying for type of loan or credit: Ì Personal Ì Share - Secured Ì Visa® Card Ì New Auto Ì Debt Consolidation Ì Other _________________________________________ Ì Used Auto
Applicant ( If additional space is needed, please use a separate sheet of paper. All income must be listed if it is to be considered.)
Last Name First Middle Social Security #
Street Address
Apt. #
City
State
Zip
Birth Date
Employer
Employer Address
Start Date
Position
Notice: Alimony, child support, or separate maintenance income need not be revealed if you do not choose to have it considered.
K Gross Monthly Income K Net Monthly Income $ _________________ Mother’s Maiden Name
Other Source: _____________________________________________________ $ ______________ Per ______________
Home Phone
Work Phone
K Own
Monthly Payment
(
)
(
)
K Rent
Co-Applicant ( If co-applicant is not a spouse, use separate application except for VISA.)
Last Name First Middle Social Security #
Street Address
Apt. #
City
State
Zip
Birth Date
Employer
Employer Address
Start Date
Position
Notice: Alimony, child support, or separate maintenance income need not be revealed if you do not choose to have it considered.
K Gross Monthly Income K Net Monthly Income $ _________________ Mother’s Maiden Name
Other Source: _____________________________________________________ $ ______________ Per ______________
Work Phone
Home Phone
K Own
Monthly Payment
(
)
(
)
K Rent
Please Sign Here (Both signatures required for Joint Credit)
A consumer credit report may be required in connection with this application and with any renewals, updates or extensions of any new credit extended as a result of this application. The Credit Union is relying on what you stated in this application and you acknowledge that everything you have stated is true. If a credit card is issued to you and you use the card (or its account number) or authorize its use, you agree that such use will constitute your agreement to the terms of the cardholder agreement that you receive from the Credit Union. Applicant Signature Date Co-Applicant Signature Date
X _________________________________________________________________
X ________________________________________________________________
For Debt Consolidation Loans, list the loans you wish to pay off:
Name of Creditor 1. 2. 3. Present Balance $ $ $ Monthly Payments $ $ $
The information about the cost of the card described in this application is accurate as of 03/05. This information may have changed after that date. To find out what may have changed, call or write to us at the number or location listed above.
Annual percentage rate for purchases
Grace period for repayment of the balance for purchases 25 days
Method of computing the balance for purchases and cash advances Average Daily Balance (including new purchases)
Minimum Finance Charge $0.50
Transaction fee for purchases None
Annual Fee None
Other Fees Late Payment Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10.00 Return Check Fee . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . $15.00
Visa® Classic Visa® Platinum
10.90% 9.80%
New York residents may contact the New York state banking department to obtain a comparative listing of credit card rates, fees and grace periods by calling 1-800-522-3330.
Application for Credit Disability Insurance
Check if Credit Disability Insurance is desired. The Credit Union will disclose the actual cost of this voluntary insurance to you. J Yes, I want Credit Disability Insurance J No, I don’t want Credit Disability Insurance
FOR CREDIT UNION USE ONLY
J
Approved
J
Declined
Credit Limit ___________________________________________________ Credit Card Account # __________________________________________ Loan Officer Signature __________________________________________
Signature
Date
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