What If The Lender Says "No"?
Getting The Credit You Deserve
What To Know About Credit Cards
Check Up On Checking Habits
Understand Your Paycheck
How To Get That Job
Money Strategies For Young Adults

What If The Lender Says "No"?
It can happen. You apply for a loan and it's denied.

Rather than be upset, find out why you were turned down. Perhaps your income is inadequate, you have too many other bills — or you have a poor credit record. Whatever it is, listen to what the lender says and then work with him or her to improve your finances.

You may need to clean up your credit record, save more money or pay off existing debts. Maybe you need to rethink your priorities. Do you really need a different car? Or, that new stereo equipment? We can work with you to sort through these questions.

Are loan payments a problem? Again, talk to us. For more affordable payments, you can pay less each month for a longer period of time. We also can give suggestions on how to get out — and stay out — of debt.

Just don't ignore your obligations. By doing nothing, you demonstrate you're not serious about paying your bills. You also jeopardize your credit record. This may hurt your chances of getting loans and other financial services in the future. Always cooperate with lenders. Then the next time you ask for a loan, you'll get it!
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Getting The Credit You Deserve
Off to college? Want a car? You'll probably need a loan. So how do you get one?

You must build a credit record — and your reputation. A credit record helps lenders, including us, decide whether to lend you money. It becomes a permanent part of your reputation.

To establish a credit record:

1. Set up a savings account and contribute to it regularly. Your ability to save tells us you have good financial habits.
2. Get a checking account. Then use it responsibly. This also demonstrates good money management skills.
3. Ask us for a credit card. It's OK if your parents co-sign for it. Just make it your responsibility to repay what you owe — on time. Timely payments prove your ability to handle credit. The more responsible you are, the sooner you can ask to borrow more.

When you borrow, always call People's Community Credit Union first. We're especially willing to help young adults get started. Other financial institutions often aren't. Here, you'll also find low borrowing rates. Especially low cost are share-secured loans.

Whether you apply in person or by phone, put your best foot forward. You've got a great opportunity to impress people with whom you want a long-lasting relationship.

Once you get your loan, pay it back on schedule. If you're chronically late, you'll have trouble getting another loan. You'll also jeopardize your credit record — and your reputation.
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What To Know About Credit Cards
Getting started with credit cards is deceptively simple. Avoid costly mistakes. Here's how:

• Understand that credit is expensive. Paying off a $1,200 stereo system for four years with an 15 percent credit card costs $403 in interest. So your stereo ends up costing $1,603!
• Pay more than the monthly minimum. If you pay only what's required — usually two percent of the balance — you'll have the debt for years. That $1,200 stereo? If you just pay the minimum, you'll be paying on it for 16 years!
• Limit your charges. If you can't pay back what you buy within a month or two, don't buy it. You have better things to do with your money than spend it on interest.
• Have just one card. The one from the credit union is the only one you need. With its low rate, you'll save every time you spend.
• Skip cash advances. For free cash, ask your credit union about a debit card. Or, use no-surcharge credit union ATMs.
• Talk to us. We're here to help you learn to use credit cards wisely.

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Check Up On Checking Habits
Use these tips to manage your checkbook:

1. Balance — When you write a check — or make a debit purchase — always record the amount in your register. Then subtract the amount from your previous balance. Otherwise, you'll never know how much you have to spend — or save. And, you won't pay overdraft fees.
2. Stay clean — Overdrafts cost money. Too many will affect your ability to borrow. Want a credit card — or car loan? You'll likely be denied if you have a lot of overdrafts. So manage your checkbook without them. Remember: Just because you have checks doesn't mean you have money available.
3. Wait — Perhaps you're expecting a paycheck this Friday. Don't write checks against it until it's deposited. Doing so is illegal — and can ruin your credit record. Which lenders, employers and landlords all review. Make sure the money's there before you spend it.
4. Use direct deposit. It's the fastest, surest way to get your paycheck deposited — on time, all the time. Your employer probably can handle this for you. So ask. Your paycheck then will be automatically put into checking. And, you won't have to rush to make the deposit.
5. Use free ATMs. For cash, you'll probably want an ATM/debit card. If using one, always find credit union no-surcharge ATMs. We can tell you where to find them.

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Understand Your Paycheck
Your paycheck is exciting, helpful — and confusing. Here's what to know about your money — and how to handle it:

• Record-keeping — You take home less than you earned because your employer withholds state, federal and social security taxes from each paycheck. You often get some of it back after filing your tax return. For that, you'll need good records. Your employer provides a record (called a W-2) of earnings and withholding. Keep it. Also keep records of deductions, including those for charities and retirement.
• Savings — Try paying yourself first. Before spending your paycheck, save 10 percent of it. For help, use payroll deduction at your credit union. You'll start a great habit, have resources for future needs and a successful financial future. With the magic of compounding, you'll be amazed at how quickly savings grow.
• Goals — Having a target makes it easier to save. Want to go to college? Thinking about a car? Start saving for your goals now. The sooner you do, the less you need to save.

Questions? Talk to us. We're eager to help.
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How To Get That Job
You've heard about a great job. Now you must get it. Your strategy: a successful interview. To prepare yourself, rehearse answers to these commonly asked questions:

• What skills do you have for the job?
• What work or school achievements have most satisfied you?
• Why do you want this job?
• What do you want to be doing in five years?
• Why are you changing jobs?
• What did you like about your last boss? Dislike?
• What jobs have you enjoyed the most? Why?
• What jobs have you enjoyed the least? Why?
• What are your strengths? Weaknesses?
• Practice with a parent or friend. Or, use a tape recorder. Make sure your responses are honest and upbeat. Eliminate bad language habits like "um" and "like, you know." Avoid a lot of gestures. Sit upright and look directly at the interviewer. Wear simple, tailored clothing.
• Learn about the job beforehand — and jot down questions to ask. You want to know if the job is right for you.
• Know exactly where to go for the interview. Be there early.

Now you're ready for the job you want!
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Money Strategies For Young Adults
Whether a recent graduate — or first-time employee — you've got the time to succeed financially. Here's what to do:

1. Set priorities. Want a house? Stop spending on less important things and start saving the down payment. By keeping your goal firmly in mind, you'll get what you want. Set a schedule — and save — for other goals, too. In time, you'll achieve them.
2. Save regularly. Put aside $100 a month, and you'll have $24,609 in 15 years (assuming 4 percent average after-tax annual interest). After 30 years, $69,405! Another idea: Put your first $10,000 into a tax-deferred retirement fund. With compounding, you'll accumulate $115,618 in 35 years at 7 percent - without contributing one penny more. To get into the savings habit, use credit union payroll deduction.
3. Pay off debt. Excessive debt limits your flexibility — and keeps you from getting what you want. Consider credit card debt. Suppose you have a $1,000 balance at 18 percent and only pay the minimum each month. Result: You'll have the debt for 10 years. Total interest paid: $799 — plus the $1,000. Refinance costly debt. Or, use savings to pay it off. You'll be money ahead.
4. Borrow strategically. Some loans help you; others don't. Credit card debt usually is more painful than productive. With a mortgage, however, you get 1) a tax deduction, 2) the possibility of realizing healthy profits later, and 3) an investment you can live in and enjoy.
5. Buy security. To protect against expensive losses, make sure you have disability, health, auto and liability insurance. If others are financially dependent on you, also get term life insurance.
6. Create an emergency fund. Your goal: three- to six-months' worth of take-home pay.

.By using time to your advantage, you'll be financially successful.
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