WHAT IS IN YOUR CREDIT SCORE

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					                                                                                          Brought to you by Vermont Federal Credit Union
                                                                                                                                          WINTER 2010


                                                            WHAT IS IN YOUR CREDIT SCORE?
                                                            When you apply for any type of a loan, lenders want to understand the risk they
                                                            are taking by providing you with the money. One number that they often look at
                                                            is your credit (or FICO®) score, a number that summarizes your credit risk based
                                                            on a snapshot of your credit report at a particular point in time. But what is in
                                                            your credit score? Below is a list of five items that it is based on:
                                                            Payment History
                                                            Approximately 35% of your FICO® score is based on this category.*
                                                            • Payment information on credit cards, installment loans, finance company
                                                            accounts and mortgage loans. • Public record and collection items (reports of
                                                            events such as bankruptcies, foreclosures, suits, wage attachments, liens and
                                                            judgments). • Details on late or missed payments (“delinquencies”), public record

WELCOME...
                                                            and collection items. • How many accounts show no late payments.
                                                            Amounts Owed
                     ...to the Local Record, the first      Approximately 30% of your FICO® score is based on this category.*
                     edition of our 2010 newsletter         • The amount owed on all accounts. • Whether you are showing a balance on
                     series. You’ll note some minor         certain types of accounts. • How many accounts have balances. • How much of
                     changes to the design. In addition     the total credit line is being used on credit cards and other “revolving credit”
                     to our desire to keep the look         accounts. • How much of installment loan accounts is still owed, compared with
                     fresh and interesting, we also         the original loan amounts.
                     strive to better communicate
                     our commitment to the local            Length of Credit History
                     communities that we serve.             Approximately 15% of your FICO® score is based on this category.*
                                                            • How long your credit accounts have been established, in general. • How long
In a time when many financial institutions are changing     specific credit accounts have been established. • How long it has been since you
hands and even being sold to out-of-state corporations,     used certain accounts.
I’m proud to highlight our local heritage. Being owned
by Vermonters makes all of us at Vermont Federal proud,     New Credit
not just as employees of the Credit Union but also as       Approximately 10% of your FICO® score is based on this category.*
members right along side you. We feel that local values     • How many new accounts you have. • How long it has been since you opened a
can only be exhibited, well...by LOCALS! Our value in the   new account. • How many recent requests for credit you have made, as indicated
community is steadfast. Not only do we provide top-         by inquiries to the credit reporting agencies. • Length of time since credit report
notch financial products and services to Vermonters;        inquiries were made by lenders. • Whether you have a good recent credit history,
we also give back to our community in so many ways.         following past payment problems.
From supporting a variety of non-profit charities, to
                                                            Types of Credit in Use
allowing our employees paid time away from work to
                                                            Approximately 10% of your FICO® score is based on this category.*
volunteer in ways that matter to them, to providing
                                                            • What kinds of credit accounts you have. • How many of each.
financial education that helps improve the lives of many
Vermonters and enables them to better plan for their        Now that you know what’s in your credit score, learn more by visiting
future and the future of their children.                    vermontfederal.org/home/selfservice/learn.
It may not be what you EXPECT from a financial              *These percentages are based on the importance of the five categories for the general population. For
institution, but it’s what you get with Vermont Federal.    particular groups—for example, people who have not been using credit long—the relative importance of
Wishing you joy and prosperity in the upcoming year!        these categories may be different.

Sincerely,


                                                                                                       AVOIDING FRAUD TIPS
Bernie Isabelle
President/CEO of Vermont Federal Credit Union

L O C A L VA L U E S . U N E X P E C T E D A D VA N T A G E S .                               vermontfederal.org 888-252-0202
   SAVE ON YOUR AUTO LOAN                                                     AVOIDING FRAUD TIPS
   Are you interested in finding ways to save money? During these
   tough economic times, many people are looking at cutting back on         Recently, our Call Center has received an increasing number of
   their expenses but a lot of people don’t know that they can “cut back”   reports of fraudulent activities, including phone scams, e-mail
   on their monthly auto loan payment.                                      scams and credit card scams. As a valued member of the Credit
                                                                            Union, we want to help you protect your personal information,
                                                                            your accounts, your identity and, ultimately, your money. Below
                                                                            are some tips to help you avoid fraud:
                                                                            KEEP INFORMED - Always stay informed about security issues
                                                                            and activities that could affect your economic future. Visit our
                                                                            home page regularly for alerts.
                                                                            VERIFY IDENTITY - If someone contacts you and says you’ve
                                                                            been a victim of fraud, verify the person’s identity before you
                                                                            provide any personal information. To be on the safe side, ask
                                                                            for the person’s name, the name of the agency or company, the
                                                                            telephone number, and the address. Get the main number from
                                                                            the phone book, the Internet, or directory assistance, then call to
                                                                            find out if the person/organization is legitimate.
   Credit unions are known for their lower loan rates and if you received   NEVER CLICK - Don’t click on links within e-mails that ask for
   an auto loan elsewhere, we could help you refinance your loan with       your personal information. A trustworthy organization will never
   a better rate, bringing your monthly payments down significantly.        request sensitive information by e-mail.
   Many members find they can save hundreds of dollars over the
   course of their loan.                                                    PREVENT HACKERS - Protect your computer with spam filters,
                                                                            anti-virus and anti-spyware software, a firewall, and keep them up
   To make it even more convenient, we offer 24/7 loan application and      to date.
   approval service to make it easier for you to apply. Either call our
   Loan Line at 888-252-0202, option 2 or visit our Web site today at       ACT IMMEDIATELY - If you believe your information may have
   vermontfederal.org to see if you can start saving money.                 been compromised notify the companies with whom you have
                                                                            the accounts right away. If you have a share draft account, you
                                                                            are enrolled in VRS Elite™, a service that will help you through the

   DIRECT DEPOSIT OF IRS TAX
                                                                            process in the unfortunate event you are a victim of identity theft/
                                                                            fraud. For more information on VRS Elite™, contact an Identity
                                                                            Fraud Representative at 866-443-3728.
   REFUNDS                                                                  At Vermont Federal, we work diligently to ensure your safety and
                                                                            security.
   In order to ensure that your tax refund is properly deposited to your
   Vermont Federal account, please make sure that you provide the IRS
   with accurate account information as follows:                            IRS SPLIT DEPOSITS
                                                                                                                             SAFE
                                                                                                                             EASY
                                                                                                                             FAST
                                                                            Did you know that you can split your tax return to deposit into
                                                                            separate accounts? Transmit your 2009 return using direct deposit.
   Note: If you wish to have your refund deposited to an account suffix     It’s safe - there’s no check to get lost or stolen. It’s easy - as it
   other than your checking, please specify your account number on          automatically goes into your account. In addition, it’s fast - you will
   your tax return as your member number followed immediately               receive your refund up to 3 weeks earlier! Stop by any branch and
   by the suffix. For example: The share account for member 12345           ask a Member Service Representative to help you determine what
   would be entered as:1234500 (do not include any dashes between           account information to provide to the IRS with our easy form.
   the member number and suffix number).


L O C A L VA L U E S . U N E X P E C T E D A D VA N T A G E S .                       vermontfederal.org 888-252-0202
HOME-BUYING
MADE SIMPLE                                                                                          Enhancements
At Vermont Federal, we                                                                    to our Overdraft Privilege Program
understand that buying a
home can be confusing and
overwhelming when in fact it
should be an exciting and proud
                                                                                                                       Beginning February 1,
time in your life. This is why we
would like to help make this
                                                                                                                       2010, Vermont Federal
process a little easier for you. Our Mortgage Officers will aid you in
better understanding the process, who’s involved, and what you will                                                    Credit Union will begin
need to reach your end goal of being a homeowner. They will walk
you through the process and answer all your questions so that you can                                                  using all overdraft
spend your energy focusing on finding the right home for you.
Our Mortgage Officers below have several years of experience in the
                                                                                     sources, including overdraft privilege plus and
mortgage industry and will help find the right mortgage program for
you.                                                                                 designated lines of credit, to authorize debit card
Suzanne Johnson                                                                      point of sale transactions and ATM withdrawals.
Office: (802) 923-1305
Toll Free: (888) 252-0202 ext. 1305
sjohnson@vermontfederal.org
                   Mark Antell                                                       As a reminder, available balance will represent any
                   Office: (802) 923-1126
                   Toll Free: (888) 252-0202 ext. 1126                               amounts on deposit in our share draft checking
                   mantell@vermontfederal.org
                                       Patricia Boyce
                                                                                     account plus any designated lines of credit for
                                       Office: (802) 752-3706
                                       Toll Free: (888) 252-0202 ext. 3706
                                                                                     overdrafts and any approved overdraft privilege
                                       pboyce@vermontfederal.org
                                                                                     amounts.
To start learning about how simple home-buying is with us, call one of
our Mortgage Officers or visit vermontfederal.org.




SCHOLARSHIPS 2010                                                               TURBO TAX® ONLINE
                                                                                Maximize your refund. Minimize your time.
Vermont Federal is offering six (6) $1,000 educational scholarships
for the 2010-2011 school year. Applications will be available                   For the first time ever, you can do your taxes with fewer steps and
beginning February 1, 2010 on                                                   fewer stops because now Turbo Tax® is built into our online banking
our Web site, vermontfederal.                                                   site, e-Branch24, for your use!
org. If you do not have access to
                                                                                • Save compared to retail pricing.
the Internet or would like more
                                                                                • TurboTax® guides you through your taxes step-by-step.
information about this year’s
                                                                                • Get every deduction you deserve.
scholarships, please contact a
                                                                                • Get your maximum refund in as few as 8 days.
Member Service Representative at
                                                                                • Deposit directly into your Vermont Federal account.
888-252-0202, option 3. Good luck!
                                                                                Sign-in to e-Branch24 to learn more.

                                                   HOLIDAY CLOSINGS                                              For branch locations and hours, visit
           Call Center: (888) 252-0202, Option 3
                                                   All locations will be closed for the following holidays:       our Web site, vermontfederal.org.
           Monday-Friday, 8:00 am to 6:00 pm
                                                   Martin Luther King, Jr. Day - Monday, January 18, 2010
           Saturday, 9:00 am to 12:00 noon         Presidents’ Day - Monday, February 15, 2010
           Loan Line: (888) 252-0202, Option 2
                                                   IMPORTANT DATES
           24 Hours a Day, 7 Days a Week           February 2, 2010, Groundhog Day
Call-24: (800) 280-9630                            March 14, 2010, Daylight Savings Time
                                                   March 17, 2010, St. Patrick’s Day                             This credit union is federally insured by the
Email: memberservices@vermontfederal.org           April 20, 2010, Vermont Federal Credit Union Annual Meeting     National Credit Union Administration.



L O C A L VA L U E S . U N E X P E C T E D A D VA N T A G E S .                                     vermontfederal.org 888-252-0202
                                                                               MEMBERS Financial Services
                                                                                                                      Fred Dufresne, CRPC®
                                                                                                                      Financial Advisor
                                                                                                                      The MEMBERS Financial
                                                                                                                      Services Center located at:
 Credit Union Week - October 13th-16th                                                                                80 Midas Dr
                                                                                                                      South Burlington, VT 05403
 Vermont Federal celebrated this year’s International Credit Union Day                                                Phone: (802) 923-1116 or
 a bit differently than in the past. While we always like to celebrate our                                            (888) 252-0202 ext. 1116
 members, this year we also celebrated the communities we serve by
 providing donations to charities in the names of any new member
 who joined the Credit Union during that week. Donations were made            New Rules For 2010 Roth Conversions May Help You Save
 to Humane Society of Chittenden County, COTS, American Heart                 on Taxes - A message from MEMBERS Financial Services
 Association, Voices Against Violence, N. W. Counseling and Support           Many investors are now familiar with the traditional IRA - an individual
 Services, Care Partners Adult Day Center, John W. Graham Emergency           retirement account or annuity that provides a tax-deferred way to save for
 Shelter, Addison County Humane Society, ACCAG, Addison County                retirement. But many people are not aware of the Roth IRA alternative, an
 Home Health Care & Hospice, Elderly Services and the Sara Holbrook           option that offers the potential for tax-free savings. Many are also not aware
 Community Center. Of course, members did not go away empty                   of the ability to convert a traditional IRA to a Roth IRA, to take advantage of
 handed. They left with a nip of Vermont Maple Syrup, along with              the Roth IRA’s unique benefits. In the past, there were income limits that kept
 the knowledge that their membership at the Credit Union helped               many traditional IRA owners from converting to a Roth. But beginning in
 support local non-profits and others in need.                                2010, the rules change.

                                                                              No Income Limits for Roth Conversions Starting in 2010
 Feed Your Neighbor - November 25th                                           Before 2010, conversions from a traditional IRA to a Roth IRA were available
                                For the second year in a row, Vermont         only for those making $100,000 or less in modified adjusted gross income
                                Federal joined radio stations 99.9            (MAGI). Beginning in 2010, though, the income limit goes away and everyone
                                The Buzz and 106.7 WIZN at Costco,            is eligible. Not only that, for conversions done in 2010, the taxes due when
                                on the day before Thanksgiving, to            switching to a Roth IRA can be deferred and spread across two years - 2011
                                help collect food for the Chittenden          and 2012. For those considering a Roth conversion, that could provide real
                                Emergency Food Shelf. Staff was               advantages.
                                available to accept donations of              Consider the Differences
                                non-perishable food items and cash
                                                                              Keep in mind there are distinct differences between a traditional and a Roth
 donations for this cause. An amazing 12,649 lbs of food was raised at
                                                                              IRA:
 this location alone, surpassing last year’s total of 7,128 lbs. This kind
 of generous support was unexpected during a time of economic                                Traditional IRA                                                  Roth IRA
 struggle, but graciously appreciated in the effort to prevent any            • Earnings grow tax deferred until you                         • Earnings are free from income tax when
                                                                                 withdraw, at which time deductible                             you withdraw if you’ve reached age 59
 neighbor from going hungry this holiday season.                                                                                                1/2 and have had the Roth for at least
                                                                                 contributions and earnings are taxed at
                                                                                 your regular income tax rate                                   5 years
 Our Employees Give Back                                                      • Distributions before age 59 1/2 may be
                                                                                 subject to a 10% federal tax penalty
                                                                                                                                             • Qualified distributions are tax free
                                                                                                                                             • There are no required distributions
 Donna Bogue has been employed at Vermont Federal Credit Union                • You are required to begin distributions                         beginning at age 70 1/2
                                 for 16 years. As the Assistant VP of            once you turn age 70 1/2
                                 Lending, Donna’s job keeps her plenty
                                 busy on a daily basis. But for years,                             Upcoming MEMBERS Financial Seminars:
                                 Donna has put aside hours of her              IRA Contributions - February                                    Estate Planning - September
                                 time to oversee Vermont Federal’s             Protection Reviews – March                                      Retirement Planning – November
                                 annual United Way campaign, raising
                                                                                                          Visit vermontfederal.org for details.
                                 hundreds of thousands of dollars for a
                                 cause that she believes in. Donna has       Fred is a Financial Advisor with MEMBERS Financial Services located at Vermont
                                 had the opportunity to experience a         Federal Credit Union. If you have any questions, or would like to provide feedback,
                                 variety of the United Way’s programs        regarding the information presented in this article, you may contact Fred at (802)
 in her personal life and is passionate about the mission and values of      923-1116.
 the organization. This passion, along with Donna’s energy, creativity
 and leadership, helped Vermont Federal raise $16,483 in our Fall 2009       *Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a
                                                                             tax professional. For legal advice, consult an attorney. Representatives are registered, securities are sold, and investment
 campaign. In addition, Donna participates annually in our Relay For         advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and
 Life Chittenden County Team. THANKS DONNA!                                  investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and
                                                                             insurance products are not federally insured, involve investment risk, may lose value and are not
 Vermont Federal is fully committed to supporting our employees              obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution,
 as they go out and donate their time and/or money to our local              through the financial services program, to make securities available to members. *CHARTERED RETIREMENT PLANNING
 community organizations and members in need.                                COUNSELOR (SM) and CRPC® are registered service marks of the College for Financial Planning.®
                                                                             Ref: FR110919-1B89


L O C A L VA L U E S . U N E X P E C T E D A D VA N T A G E S .                                      vermontfederal.org 888-252-0202
                    Notice of Annual Meeting and Election of Directors
The Vermont Federal Credit Union, 2010 Annual Meeting will be held Tuesday, April 20th, 2010 at
5:30 pm at the Double Tree Hotel located on Williston Road in South Burlington, VT. All members are
encouraged to attend.

Two Directors will be elected to the Board this year. A Nominating Committee has been established according
to Vermont Federal bylaws. They have submitted the following candidates: Douglas Fisher and Joseph Finnigan

Any member in good standing, age 18 or older is eligible for election to the Board of Directors.

Questions regarding the election process should be directed to Katherine Placey at 802-658-0225 ext 1171 or
any Vermont Federal board member.

                     Members are advised that VTFCU bylaws stipulate the following:

    1. Any member can place his/her name in nomination exclusive of the nominating committee, by written
       petition that includes a brief of qualifications, biographical information and at least 20 member
       signatures. All nominees must sign a certificate agreeing to serve if elected. Nominations must be
       postmarked by March 2, 2010, and sent to the Board Secretary, at the Vermont Federal Credit Union, P.O.
       Box 36, Burlington, VT 05402-0036.

    2. During the meeting there will not be an opportunity for nominations from the floor, unless there are
       positions without a nominee.

    3. Should the number of candidates equal the number of open positions on the Board of Directors, the
       chair may take a voice vote or declare each nominee elected by general consent.
                                Current Nominees for the Board of Directors:

• Joseph Finnigan
Joseph Finnigan was elected to the Board of Directors and as Treasurer of Vermont Federal Credit Union in
1978. He served as President/CEO for more than 30 years, retiring in March 2009. Joe currently serves as the
Board representative on the Asset Liability Management Committee. He serves on the Credit Union Advisory
Panel for CUNA Mutual Group and on the Board of Trustees of the National Credit Union Legislation Action
Council (CULAC). Joe is finishing his third term as a director and Chairman of the Board of TriCorp Federal Credit
Union. He has also served on the Board of Directors of the New England Credit Union Heritage Foundation. In
1999, Joe was honored to be nominated for Director of the Year for CUES Directors Educational Forum, and in
2005 was honored to be inducted into the Credit Union Executives Society’s Hall of Fame. He has been active
on various community boards including the Vermont Children’s Aid Society, the Jimmy Fund Council through
the Dana-Farber Cancer Institute, and the Y Time Children’s Center. Joe is a graduate of Northeastern University
and resides in South Burlington with his wife, Sue.

• Douglas Fisher
Doug served on the Vermont Federal Credit Union Supervisory Committee from 1993 until his election to the
Board of Directors in 2002. He is the Finance Director for the Town of Essex. Prior to his current position, he was
an Audit Partner and Managing Partner for R.F. Lavigne and Company. He is also a member of the Government
Finance Officers Association. Doug graduated from Bentley College with a degree in Accounting. Doug and his
family reside in Burlington.




            Jean Isham
            Secretary, Board of Directors