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.
Using Credit Wisely
Time can clean up a bad credit record, but it takes years, and during that time, you might suffer further misfortunes. One helpful thing to do is to start using credit actively, and using credit wisely. You can do this even if your credit is bad. It works in much the same manner as getting credit for the first time.
Don’t Make the Same Mistakes
As you are rebuilding your credit, you will find it necessary to avoid getting into the traps that caused it to fall so badly before. This takes discipline, vigilance, the willingness to delay gratification and stop indulging, and patience. That is why you should look into making a budget, cutting back your expenses, taking a second job, or other tough measures.
Don’t avoid credit cards
Having bad credit may tempt you to swear off the credit cards, but if you want to improve your credit, you must eventually use credit. One option is to get a secured credit card, which requires you to put down a deposit that can be used as collateral.
When applying for new credit cards, too many applications can lower your credit score. Apply for only a few instead.
Don’t do anything to harm your credit score
Your credit score is made of 35% payment history, 30% amount owed, 15% length of your credit history, 10% new credit, and 10% type of credit used. To keep your score good:
- Pay your bills on time, fully if possible. Consider setting up automatic payment deductions from a credit union or bank account to pay your bills; this can help you avoid late fees and default interest rates.
- If you can’t make your payment on time, call up the card company and explain your situation. Ask to have the late fee waived. Though not guaranteed to work, card companies sometimes will waive them for you. They can also extend your due date for you and forego reporting the late payment to the credit bureaus.
- Don’t max out your cards. Using about a third of your credit limit is optimal.
- Don’t apply for a lot of new credit cards. Keep only a few.
- Use your card or cards regularly so that you can build up a history. Charge only as much as you can pay off (set aside the cash for it ahead of time), and do this every month.
Closing a card
If you have more cards than you need, consider closing some of them. This will reduce your total available credit limit, which can work in your favor. Too much credit can make you appear risky. However, closing a card can negatively impact your credit score. Here are some things to keep in mind:
- Closing a card that still has a balance can cause it to appear as maxed out on your credit report, since there is no longer a credit limit on it.
- Closing your oldest card will shorten your credit history and therefore make you look risky.
- Closing ALL of your cards can prevent you from using credit in the first place, which does not help your credit score.
- Closing only those cards that have the least favorable terms (fees, interest rates, perks) may be in your best interest.
- After you have closed a card (do it in writing), check your credit report a few months later to make sure that the card is indeed closed.
Help From Mid Oregon
Mid Oregon’s Banking App includes Credit Savvy, which provides your credit score and information which would be on your credit report. Credit Savvy also breaks down some factors which influence your score, with recommendations on actions to improve.
Talk to a Mid Oregon loan officer to get more personalized feedback on improving your credit. They can help guide you in using credit wisely. As you would be a member, the credit union is more successful when you are, too. Visit a Central Oregon branch, email us to info@midoregon.com, or call us at (541) 382-1795. Find out how using credit wisely will improve your financial well being.
Holiday Dough Supporting Local Charities
Mid Oregon Launches Annual Holiday Dough
Mid Oregon Credit Union is encouraging the communities we serve to contribute to our annual fundraiser, Holiday Dough supporting local charities. These Central Oregon organizations provide food, clothing and shelter for individuals and families in greatest need during the holidays.
Accepting Financial Contributions Through December 1st
Members and the general public can stop by any Mid Oregon branch to make a Holiday Dough donation via cash or check through December 1, 2020. For contactless donations, members can complete the convenient online form at www.midoregon.com or call our Contact Center at (541) 382-1795. All contributions stay in the community where they are collected. No amount is too big or too small.
One hundred percent of the donations will benefit these local agencies:
• The Giving Plate of Bend, coordinating the Monthly Food Box program, Grow & Give Garden, Kid’s Korner food bank, and Backpacks for Bend.
• La Pine Christmas Basket Association, providing food during the Christmas holiday for people in the South Deschutes County area
• Redmond Jericho Road, Providing hot meals, backpacks of food, emergency and housing assistance to those in need in the Redmond area.
• Jefferson County Food Bank (Madras), supplying food to families and individuals
• Crook County Holiday Partnership—(Prineville), providing holiday support to families with children, senior and disabled citizens in need in Crook County
• Sisters Kiwanis Food Bank – Distributing more than 60,000 pounds of food annually and helping more than 100 families each month, the food bank offers a shopping-style food pantry to patrons.
Living Out “People Helping People”
Giving back to the community is a core value of Mid Oregon Credit Union, aligning with the credit union philosophy of “people helping people,” Mid Oregon members and the community responded generously during 2019 Holiday Dough effort, donating nearly $3,500 to local holiday food banks.
“This time of year can be challenging for some local families—maybe more so in 2020. When putting food on the table is a daily struggle, planning a festive holiday meal can be almost impossible,” says Kyle Frick, VP of Marketing for Mid Oregon Credit Union. “We hope to see continued support from our members and the community for the Holiday Dough fundraiser this year.”
Central Oregon Continues To Be Generous
In the difficult year of 2020, Mid Oregon members and others in the community have proven their generosity. Our activities of collecting donations during our Free Shred Event (for Healthy Beginnings), Supplies 4 Schools (Family Access Network & Schools) and the Wildfire Relief Response with the American Red Cross, produced significant contribution amounts, in many cases our most ever. We expect this to continue with Holiday Dough supporting local charities. We appreciate the continued kindness expressed through financial giving our members have shown.
Fall Smart Money Moves
5 Smart Money Moves to Make This Fall
As the leaves begin to change color, it’s time to start thinking about your year-end money strategy. The fall and winter holidays are close…closer than you think. Use the following strategies, Fall smart money moves, to make the rest of the year count.
- Clean out your closet. You looked into your closet and decided you have nothing to wear. Before you start buying new clothes, pull out your cold weather clothes and give them a good look. Try them on to make sure everything still fits and donate what you no longer wish to keep.
- Add holidays into your budget. This year, the year-end holiday celebrations will likely be virtual rather than in-person, so you’re less likely to have travel expenses, but there’s still a chance you may overspend on gifts and decorations. If you haven’t already made a spending plan for them, do so now. Figure out how much you can afford to spend and stick to that amount.
Save Now, Benefit Later
- Up your 401(k). If your budget can handle it, why not increase your retirement deductions by 1%? The more you save now, the more tax benefits you’ll get, AND the less you have to worry about the future.
- Spend your Flexible Spending Account (FSA) dollars. Use it or lose it. You’ve already saved this money, so don’t leave it on the table. Check your FSA documentation to see what health-related expenses you can use this account for and use those dollars.
Don’t Lose Your Time Off
- Plan to use your vacation days. Using your vacation days is key to living a successful, balanced life. Even if you have a staycation, it’s critical to use your well-deserved days off. If you plan now, you can even save for a weekend getaway before the end of the year. Life is all about balance.
As the weather turns colder, it’s a great time to reflect on the money progress you’ve made throughout the past year and start focusing on small wins to finish the year right.