Category Archives: Credit Management and Credit Cards

Smart Ways To Use Your Credit Card Rewards This Summer

Posted on by
Reply

Summer is all about soaking up the sunshine, making memories, and — ideally — sticking to your budget. If you have a rewards credit card, you may already hold the key to a more affordable and enjoyable summer. At First Financial, our Visa Signature Cash Plus Credit Card allows members to earn cash back and uChoose Rewards points that can be redeemed in various fun, practical, and rewarding ways.* Here are some great ideas to help make the most of your credit card rewards this summer.

1. Book Your Dream Vacation

Whether heading to a tropical beach or planning a relaxing weekend close to home, travel expenses can add up quickly. Luckily, your uChoose Rewards points can help offset big-ticket items like flights, hotel stays, and even cruises. With your travel partially or fully covered, you can use more of your travel budget for experiences and relaxation, without compromising on fun.

2. Live in the Moment without Breaking the Bank

Fortunately, cash back rewards can help take the sting out of seasonal expenses. Our Visa Cash Plus Credit Card allows you to earn rewards on everyday purchases, then redeem them later to help offset credit card expenses. Whether it’s gas for a weekend getaway, supplies for your next BBQ, or your weekly grocery haul – those daily swipes add up to future savings on purchases you would have made anyway.

3. Treat Yourself

Summer is the perfect time to indulge a little. Maybe it’s a fancy dinner out, a gadget you’ve been eyeing, or a spontaneous day trip down the shore. Use your earned cash back rewards as a statement credit to be applied to your next credit card bill, and turn those treats into guilt-free fun. You’ve already earned that cash back, so use it on a treat for yourself!

4. Share the Joy with Friends and Family

Your rewards can go even further when you use them to celebrate others. Use your uChoose Rewards points to find the perfect gift for a birthday, graduation, or other summer milestone. From merchant gift cards, to electronics, home goods, and accessories – you’ll have plenty of ways to spread the love. Plus, you can also redeem your rewards directly through the Apple Store for the latest Apple products, as well as on various merchant websites to reduce your total cost when PayPal is selected as a payment option during checkout.

5. Prep for Back-to-School Season

Summer may have just gotten started, but back-to-school season will creep up before you know it. Redeem your rewards to stock up on school supplies, electronics, or even new clothes for the kids. Using points for these essentials can free up room in your budget for more summer fun or help you transition between seasons a little more smoothly.

Maximize Your Rewards with First Financial

No matter how you choose to use them, your credit card rewards are a smart way to stretch your money a little further. If you’re not already taking advantage of our First Financial Visa Signature Cash Plus Credit Card, now is the perfect time to apply! For more tips on using your credit card wisely or to explore our other credit card options, visit us at firstffcu.com, call 732.312.1500, or stop by a local branch.

 *Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

Finding a Credit Card That Fits Your Lifestyle

Posted on by
Reply

Although picking a credit card isn’t as big of a decision as buying a house or car, choosing the right credit card to add to your wallet isn’t a decision that should be taken lightly. You might have an idea of the cards that are out there as a result of receiving offers in the mail, or you might just be embarking on your hunt for “the one” – your dream credit card, that is. Either way, the number of options available to you might be overwhelming. Just like the cliché saying goes, there is a credit card out there for everyone – you just have to find it. Here are some steps to help you find a credit card that fits your lifestyle.

Check Your Credit Report

Although report cards as you know them stop after high school, a credit report functions like an “adult” report card. A credit report is a snapshot of your credit situation today and your credit history over time, such as your current loans and how well you’ve done paying those loans on time. Just like your parents might have rewarded you for bringing home a satisfactory report card, credit card companies reward you for maintaining a good credit history by qualifying you for credit cards with better perks. There are various ways to check your credit score and once you do – you’re one step closer to identifying what credit cards you may qualify for. Check out our Guide to Understanding Your Credit Score to understand what factors make up your credit score and how to maintain or improve it.

Identify Which Credit Card Will Help You Meet Your Needs

Once you know your credit score, you can better assess what type of credit card will best meet your needs and what you can reasonably expect to get approved for. According to NerdWallet, there are three general types of credit cards:

  • Cards for those with limited or damaged credit history: Some credit card issuers offer credit cards for young people over age 23 who are looking to establish credit history. These credit cards are often easier to get qualified for and typically have lower credit limits. Secured credit cards may be an option if you have no credit or poor credit. To compensate for the added risk, the credit card issuer will take an initial deposit from you which sets your “credit limit.” Your deposit is not used to pay for your purchases – the deposit is there for the card issuer if you don’t pay your bill. If you exhibit good behavior, such as paying your bill on time each month – the issuer may upgrade your account to an unsecured credit card with no deposit required.
  • Cards for those who value low interest: Cards with introductory 0% APR periods or ongoing low APRs are usually better options for those who expect to carry a balance, have an unpredictable income, or who expect to make large or emergency purchases.
  • Cards for those who value rewards: Rewards credit cards are generally well-suited for those who intend to pay their balance in full every month and not incur interest. That’s because rewards credit cards generally have higher APRs, but provide benefits like sign-up bonuses and points, miles, or cash back on purchases.

It’s important to examine your values and spending habits to determine which credit card type would be the best fit for you.

It’s Time for a Vocabulary Lesson

You are setting yourself up for success when it comes to using your credit card responsibly if you understand important credit card terminology. Although there are more comprehensive lists of credit card terminology, here are a few terms to get you started.

  • Annual Percentage Rate: Usually referred to as APR, this is the interest rate you are charged if you carry a credit card balance each billing cycle – if you don’t pay your balance off in full.
  • Credit Limit: The maximum amount of money you can charge to your credit card, set by your credit card issuer. This is a ceiling, as you typically can’t spend more than your credit limit without incurring penalties.
  • Minimum Payment: The smallest amount you can pay on your credit card bill each month to keep your account in good standing. Failing to make this payment typically results in late payment penalty fees.

Apply for the Credit Card That Fits Your Lifestyle

Once you’ve done your homework and are confident in your decision, it’s time to apply for your credit card of choice. Depending on the type of credit card you decide on, ensure you understand all of the terms and benefits to make the card work for you. For example, if you applied for a credit card because you liked their introductory cash bonus offer – make sure you understand the amount you have to spend by the deadline to ensure you qualify for the cash bonus.

If your credit card research has led you to First Financial, rest assured we have a credit card to fit any lifestyle. Whether you’re looking for a no-frills credit card with a lower interest rate, a credit card that’s a stepping stone, or a credit card that rewards you – we have various options that put your needs and wants first.* You can apply online 24/7, or call our Loan Department at 732-312-1500, Option 4 if you have questions.

*APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See firstffcu.com for current rates.

Smart Strategies for Managing Debt

Posted on by
Reply

Managing debt effectively is key to achieving financial stability and long-term success. If debt is weighing you down, know that you’re not alone — and that there are proven strategies to help you regain control. Whether you need to adjust your spending habits, create a structured repayment plan, or explore consolidation options, taking proactive steps today can set you up for a more secure financial future. Here’s how to get started:

1. Identify the Root Causes of Your Debt

Before tackling your debt, it’s important to understand how you got there. Ask yourself:

  • Are you overspending on non-essentials?
  • Do you lack a clear financial plan?
  • Have unexpected expenses left you struggling to catch up?

Debt is often a symptom of deeper financial habits. Acknowledging the behaviors that led to debt allows you to make meaningful changes. By recognizing these patterns, you can create a plan that pays off what you owe and prevents future debt from piling up.

2. Stop Adding to Your Debt

The first step to getting out of debt is to stop accumulating more. Here’s how:

Stick to a Budget: A well-planned budget helps you manage debt and daily expenses. When you take on debt, you’re using future income to pay for today’s expenses, making it harder to reach your financial goals. Use First Financial’s Home Budget Calculator and our other budgeting tools to take control of your spending.

Build an Emergency Fund: Creating a safety net of 3-6 months’ worth of expenses prevents you from relying on credit cards or loans in times of financial strain.

Get the Right Insurance Coverage: Medical bills, home repairs, or car accidents can derail your finances. Proper insurance — whether health, auto, home, or renter’s insurance, can prevent major unexpected expenses from pushing you further into debt.

3. Develop a Realistic Debt Payoff Plan

Paying off debt requires a sustainable plan tailored to your financial situation. Consider:

  • Your Income and Expenses: Determine how much extra you can realistically put toward debt each month.
  • Your Financial Priorities: Do you have other obligations – such as rent, childcare, or savings goals?
  • Opportunities to Increase Income: Can you take on extra work or reduce expenses to accelerate debt repayment?

Depending on your situation, one of the following common strategies may work to help you pay down debt efficiently:

The Snowball Method: Focus on eliminating smaller debts first for quick wins that keep you motivated.

  1. List out your debts from the smallest to the largest balance.
  2. Make minimum payments on all your debts except the smallest one.
  3. Put all your extra funds toward paying off the smallest debt first.
  4. Once the smallest debt is gone, roll that payment into the next smallest debt.

The Avalanche Method: Prioritize high-interest debts to save the most money over time.

  1. List your debts from the highest to lowest interest rate.
  2. Make the minimum payment on all debts except the one with the highest interest.
  3. Apply any extra funds to the debt with the highest interest rate first.
  4. Repeat the process until all debts are eliminated.

Choose the method that best aligns with your financial situation and motivation style.

4. Consider Debt Consolidation

For those with multiple high-interest debts, consolidation may be an effective strategy. Debt consolidation involves taking out a new loan to pay off existing debt, allowing you to combine payments into one manageable monthly bill — ideally at a lower interest rate.

Benefits of a First Financial Debt Consolidation Loan:

  • Fixed monthly payments
  • Flexible terms up to 60 months
  • No pre-payment penalties

This option works best if you qualify for a lower interest rate than your current debt has, otherwise – you may only be shifting debt rather than reducing it. Apply for a First Financial Consolidation Loan today and simplify your repayment process while saving money on interest.*

Take Control of Your Debt Today

Managing debt doesn’t have to feel overwhelming. We’re here to help you make steady progress toward financial freedom. For more financial resources, advice, and loan options – call us at 732.312.1500, visit your local branch, or explore our services online. Subscribe to our First Scoop Blog for ongoing tips and insights to keep your finances on track!

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. A First Financial Federal Credit Union membership is required to obtain a Personal or Consolidation Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

Retiring Debt When You Retire

Posted on by
Reply

Many Americans rely on credit cards for their everyday purchases. After all, it’s so easy and tempting – that new pair of shoes looks great, and while they’re expensive, you can pay them off over time, you think, barely giving things a second thought as you tap your smartphone or swipe your card for payment.

But these spontaneous purchases come at a cost – interest that accumulates if you fail to pay your charge card bill in full each month. That debt is bad enough at any age, but when you’re facing retirement and need to live on a fixed income, it can be a brutal financial strain.

While you may not be willing to part with your credit card as you reach your Golden Years, there are a few key considerations for using it when relying on a fixed monthly income.

1. Recognize that not all credit cards are alike. When trying to decide whether to sign up for a card, think about your intended use. While it may offer an attractive rewards program, if you’re not paying off the balance each month, you could pay far more in interest than any rewards would provide. Additionally, these cards typically come with large annual fees and even higher interest rates. Think twice before agreeing to that new card and instead look for a card with a lower interest rate.*

2. Building up a good credit score can help you get a lower interest rate on a credit card. To improve your rating, make sure that you pay your bills on time and minimize your debt. It’s a catch 22 – if you could pay your bills on time each month, you wouldn’t necessarily need a credit card.

3. Try your best to reduce your debt each month. While doing away with all credit cards may be impractical, reducing your debt will help keep your finances in order and your fixed income more predictable.

If you need help reducing your debt, talk to a financial professional who could help you develop a plan that works for your habits and lifestyle.

Call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.

 Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

Tracking #1-05363571

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Common Reasons for Drops in Your Credit Score

Posted on by
Reply

When it comes to personal finance, one of the most pivotal benchmarks is your credit score. This three-digit number is the barometer lenders use to gauge your creditworthiness. It’s a quantified assessment of your ability to repay debts, and it can fluctuate for a variety of reasons. Understanding these fluctuations, especially what causes a drop in credit score – is essential for financial stability and agility.

Late or Missed Payments

One of the most significant contributors to a drop in credit score is late or missed payments on your credit card. Your payment history carries considerable weight in credit score calculations, and even a single missed payment can negatively affect your score. It’s imperative to stay on top of your payments. If you’ve missed a payment, don’t panic. Instead, set up automatic payments to prevent future lapses and regularly review your credit report to ensure all payment information is accurate and up to date.

High Credit Utilization

Another reason for a drop in your credit score can be high credit utilization. Experts recommend keeping your credit utilization—the percentage of your credit limit that you use, below 30%. High utilization can signal to creditors that you’re over-reliant on credit, and reducing your balances can help mitigate the impact on your score. Remember, the goal is to demonstrate that you can manage credit responsibly.

Decreased Credit Limits

Sometimes, a drop in credit score is due to a lower credit limit. This can unexpectedly increase your credit utilization ratio. If you find your limit reduced, contact your credit issuer to discuss why it happened and whether it can be restored – especially if you haven’t changed your spending habits.

New Credit Applications

Applying for new credit can also result in a drop in your credit score due to inquiries from lenders. While one application might not cause a significant change, multiple applications within a short timeframe can be problematic. Be strategic about when and how often you apply for new credit to minimize the impact on your score.

Closing Credit Accounts

Closing credit accounts might seem like a positive step, but it can actually lead to a drop in your credit score. This can shorten your average credit history and potentially increase your credit utilization ratio. Sometimes the long-term benefits of closing an account outweigh the short-term impact on your score. Ultimately, you’ll need to decide which is right for your particular financial scenario. It’s often best to pay off these credit accounts, and just stop using them – rather than closing them out completely.

Major Financial Events

Major negative financial events such as bankruptcy or foreclosure, have profound effects on your credit score. These incidents can stay on your credit report for years, so it’s important to manage debt wisely and seek assistance before such events occur.

Inaccurate Information

At times, a drop in credit score could be due to errors on your credit report. Regular checks of your credit report can help you spot and address inaccuracies quickly. Whether it’s a misreported payment or incorrect personal information, it’s within your rights to dispute these errors and have them corrected.

Identity Theft

Lastly, identity theft can cause a significant and unexpected drop in your credit score. Monitoring your credit can alert you to potential fraud, and if you suspect identity theft – immediately placing a fraud alert or credit freeze can prevent further damage to your score. Brush up on what to do in this situation ahead of time so you’re prepared if this ever happens to you.

Maintaining a robust credit score is an ongoing process. By understanding the common causes that can trigger a drop in credit score, you’ll be better prepared to protect and improve your credit standing. Always remember that each aspect of your credit history is a piece of a larger financial puzzle.

For more information on managing your credit and to set-up an appointment at one of our branches, contact us at 732-312-1500. Stay on top of your financial health by subscribing to First Financial’s monthly newsletter or check out our handy guide on credit management.

Ways to Avoid and Fix Credit Card Debt

Posted on by
Reply

At the beginning of 2023, the total of U.S. credit card debt remained at $986 billion, unchanged from the end of 2022 – according to a Federal Reserve Bank of New York report on household debt. In addition, credit card balances are up 20% from a year ago, according to a recent report from TransUnion. The average balance was found to have risen $5,733 over that same period. These figures are astonishing, however as inflation continues to rise – many consumers have turned to their credit cards to purchase items they feel they need to continue their standard of living. Continue reading to discover ways to avoid credit card debt, and if you’re currently in debt – how to fix it.

Avoiding Credit Card Debt

Know your numbers. Do you know what your Annual Percentage Rate (APR) is on the credit card you use most frequently? If you pay your balance off in full each month, this number might not make a difference to you – but if you carry a balance, you’ll want to make sure it’s on a credit card with as low of an APR as possible. This number determines the interest you’ll pay each month for carrying a balance. And the bigger the balance, the more you’re going to pay in interest. Credit unions have a maximum APR of 18% on all credit cards. Be sure to stop into your local credit union to inquire, or if you live, work, worship, volunteer or attend school in Monmouth or Ocean Counties in NJ – check out our four great consumer credit card options.* We’re sure there’s one out there for you!

You’ll also want to pay attention to if your credit card offers a grace period on payments, if there’s an annual fee associated with your card, what your monthly payment due date is, and if there are any additional fees. Note that late and annual fees can add a balance that you weren’t expecting, which can be worrisome if you’re already carrying a high balance that you’re having trouble paying.

Use your credit card as just that. Using your credit card for anything other than making occasional purchases within your budget, can cause you to rack up more debt from fees and other service charges. For example, using your credit card to make a cash advance, using your credit card at an ATM, or to make a balance transfer can end up costing you more in the long run. Taking a cash advance out of your card balance or using your credit card at an ATM for cash, typically come with higher interest rates on the cash advance and fees for using the service. While a balance transfer promotion offering a lower APR to transfer your balance from another higher rate card might seem attractive, if you don’t pay off that balance within the promotional period or make any new purchases on that card – you may be paying anything remaining after the promotion ends at an even higher interest rate (plus any initial balance transfer fees for using the service). The moral of the story here is – if you are going to use a credit card, use it for regular purchases only that you can afford to pay off within the current billing cycle (usually 30 days).

Avoid auto-saving your card online. If your credit card is saved online within a website you frequently shop, an app, or your mobile phone – delete it. If one-click impulse buying is a problem for you, manually having to get your credit card and type the numbers in for every purchase should really make you evaluate whether that purchase is worth it or not.

Don’t carry your card on you all the time. If you’re always reaching into your wallet for that certain credit card, leave it at home and only take it out when you absolutely need it. This will also stop impulse buying, and you’ll have to plan out your trip to the store you want to use the card at and can decide if you truly need and can afford the item(s).

Already in Credit Card Debt? Here are some ways to fix it:

Evaluate what and where you charge. Start with a monthly budget. You can’t pay off debt if you don’t actually know what’s coming in and going out each month. This will give you the real numbers you need to work with so you know how much you bring in on a monthly basis, and what bills you need to pay in that month with that income. Anything else that is not a necessity should be stopped until your credit card debt is paid off.

Make a plan for paying off your debt. The best approach here, especially if you have multiple credit cards to pay off – is tackling the one with the highest interest rate first. Pay this card all the way down and then move onto the card with the next highest interest rate until all are paid off. Do not charge any additional purchases to any credit cards during this payoff period.

Take out a personal loan from your credit union. Instead of continuing to rack up debt and pay more in interest on high rate credit cards, take out a lower rate personal or consolidation loan from your local credit union.** Use the loan to pay off all your credit card debt, don’t make any additional credit card purchases, and then tackle paying off that personal loan. You’ll pay off your debt at a much lower interest rate, and your credit score may even improve since you’ll be reducing your credit utilization at the same time.

Look for a long-term 0% balance transfer offer. While a short-term credit card balance transfer isn’t usually advisable, a longer term one which offers 0% on balance transfers for at least one year or longer – may work for you if you do it right. This means you will need to fully concentrate on paying off all your credit card debt within the balance transfer period. If that promotional period is 0% for 18 months, then all the debt you have transferred needs to be paid off by the end of that 18 months and no new charges – otherwise you risk adding on more interest at a higher rate for anything not paid off by the time the offer ends. This method requires strict planning and budgeting.

Open a high yield savings account. If you have any leftover funds at the end of each month in your budget, put them in a high yield savings account that will pay you some dividends for keeping your money in it. This will help you build a savings reserve and hopefully prevent you from accruing more debt while you’re trying to pay off your existing balance.

While credit cards can be a great financial tool and resource, it’s good practice to only use them as that. Always use a credit card in moderation, and avoid making tempting but unnecessary purchases on them. If you have questions about credit management or would like to make an appointment with one of our staff to help you with a game plan to pay off credit card debt – visit a local branch or call 732.312.1500.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.