The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Your Top Five Credit Questions Answered
By Jean Chatzky* When it comes to building and maintaining good credit, the best path isn’t always obvious.
A new survey from U.S. News & World Report shows that nearly one-third of Americans surveyed were unclear about exactly what factors have an impact on their credit score. It’s no wonder with a lack of financial literacy courses available to most school-age students in the U.S.
While some people may not realize it, a good (or excellent) credit score gives you the best chance of applying for and receiving low interest rates on big-ticket purchases such as mortgages and car loans as well as on the credit cards you use for everyday purchases. Your credit also plays a role in whether you qualify to rent an apartment and what you pay for homeowners and auto insurance.
Here are some frequently asked questions about credit with answers to help you make better informed financial decisions.
What’s a credit utilization ratio and the ideal range?
Many people don’t realize that using too much of your available credit can have a negative impact on your credit. That’s where your credit utilization ratio comes in. Essentially, it’s the percentage of available credit that you’re using at any given time. To keep your credit score up, aim to use at most only 10% to 30% of the credit you have available at any time. To do that, carefully monitor how much you spend each month and if you have a heavy spending month, pay your bill before it’s due to bring the ratio down and keep yourself in range.
Will carrying a zero balance on my credit card help build credit?
If you haven’t used your credit card in a six-month period, it could be considered inactive and your issuer could cancel the account. This will unfortunately have a negative impact on your credit score. The reason? That goes back to your utilization ratio. If you have a small amount of debt and a lot of available credit, that means you have a low utilization ratio, which is good. When your credit card issuer closes your account because of inactivity, it decreases your available credit, and dings your credit score.
The solution? To keep your cards active, use them once a month or so, then pay off the balance on or before the due date. Another easy way to keep a credit card account active is to place a monthly automatic charge on the card. Then, pay that credit card itself via an automatic payment. You’ll never be late!
Should I close credit card accounts I don’t use anymore?
Not necessarily. Why? It goes back to that utilization ratio. When you close an account, you lose that line of credit. That tends to automatically increase your utilization ratio which — depending on where it is to begin with, can hurt your score. If you want to switch cards to avoid an annual fee, one option is to replace the line of credit with another card that doesn’t charge fees. You can also ask your credit card issuer (nicely) to switch you to another card with no fee. The alternative? If you do close a card, pay down some debt to keep your utilization ratio in the clear. One more thing to consider if you’re thinking of closing a card is your credit age, closing your oldest card could impact that factor as well.
How can I improve a low credit score?
First: pay your bills on time every time. If you’re having trouble qualifying for a regular credit card (or in the process of rebuilding your credit), consider applying for a secured card. With this type of card, you deposit a sum of money (typically a few hundred dollars). That becomes your collateral to secure your credit. Then you go about using the card and paying the bills. That habitual behavior will help you improve your credit. Check with your credit union or bank to see what secured card options they offer.
How long will it take to see improvement in a low credit score?
Those who keep credit card balances low — at 30% of the credit line or less — and making timely payments for at least six months in a row, should start to see an improvement in their credit scores. Don’t be discouraged if it takes a bit longer, though. Think of this as a marathon, not a sprint.
*This guest article is from the “Your Money Blog” in Mid Oregon’s Digital Banking Credit Savvy resource. It is made possible by Savvy Money. “Your Top Five Credit Questions Answered” by Jean Chatzky with Casandra Andrews was published in May 2021.
Go Paperless With Mid Oregon eStatements
Looking for ways to declutter and simplify your financial life? One easy way is to reduce the amount of paper you receive in the mail. If you find that you’re leaving your Mid Oregon statements sitting on your counter, unopened, consider trying eStatements instead!
How to opt in to Mid Oregon eStatements
You can opt in/out of Mid Oregon eStatements with just a few clicks:
- Log into your account on Digital Banking using your desktop computer or the mobile app on your phone or tablet.
- Click on the eStatement widget at the left hand side of your screen (bottom toolbar on mobile). If you can’t find eStatements, click the more…. button to reveal any hidden widgets
- Tap the “gear” icon at the right of the Statements and Notices header and select the button to switch from “Paper” to “Online”
Benefits of eStatements and eNotices
When you choose eStatements, you’ll also have access to your tax statements and other Mid Oregon notices electronically (certificate renewal letters, overdraft notices, etc.). Your documents are easy to find, download and print anytime you need them, just by logging into Digital Banking. Because they’re stored securely, you never have to worry about them getting into the wrong hands. Plus, you’ll always have 24 months of statements right at your fingertips!
Tackle the paper, reduce waste
With eStatements, you won’t need to dig through files, or try to keep up with shredding your outdated financial documents! Plus, you’ll receive your statements a day or two earlier than you would if you receive them by mail. And no more worries about important personal data being intercepted in the mail stream.
Adopt-A-Bear Donations Raise More Than $6,100 for Healthy Beginnings
Mid Oregon Credit Union members were generous with 2021 Adopt-a-Bear donations, raising more than $6,100 for Healthy Beginnings. Thank you!
Throughout April, Mid Oregon members and the community supported Healthy Beginnings by “adopting a bear.” They donated at branches, online at www.midoregon.com, and over the phone. Additionally, Mid Oregon accepted donations at its annual Free Shred event with Republic Services on April 17.
Continued Support of Adopt-a-Bear Donations
Nearly 40% of children enter kindergarten with a barrier to success. Healthy Beginnings provides free health and development screenings to identify barriers and connect families to life-changing services. Their goal is to make sure every child enters kindergarten ready to learn, contribute, and thrive. To date, Healthy Beginnings has served more than 10,000 children in Central Oregon.
Since 2004, Mid Oregon’s Adopt-A-Bear fundraiser has raised close to $35,000 for Healthy Beginnings.
“We are amazed by our members’ generosity with community initiatives, like the Adopt-a-Bear donations,” says Kyle Frick, VP of Marketing and Community Relations. “Their contributions make sure more children have access to screenings.”
Executive Director of Healthy Beginnings Kathleen Cody adds, “Mid Oregon Credit Union has been a valued partner for over 15 years. They share our commitment to helping all children enjoy a brighter future.”
About Healthy Beginnings
Healthy Beginnings is a registered 503(c) non-profit organization in Bend, Oregon. Their screening services are available in Deschutes, Crook, and Jefferson counties. To learn more, visit www.myhb.org.