Visa Platinum Rewards Card, 2 Time for a U-Turn?, 3 Mortgage Center, 3 Your Credit Score, 7 New Website, 11
And Much More!
Contents The Power of Platinum
Time for a U-Turn
The Mortgage Center
Go Green! With Online Banking
Your Privacy is Our Policy
Your Credit Score and What it Means
Aerospace Federal Credit Union
Auto Loan Help, page 3
is proud to announce the arrival of our newly formatted newsletter. We know you’ll find it to be an indispensible tool for pertinent financial information and money saving tips. We value your membership. Thank you for giving us the opportunity to turn your financial goals into reality!
AFCU as of December 31, 2008: Assets = $239,059,124 • Shares = $213,452,377 • Loans = $39,474,119 • Members = 10,431
Power of Platinum Introducing the New AFCU Platinum Visa with Rewards This past month we made some improvements to our credit card program. Our goal - to make the AFCU Visa® credit card more desirable for our members. The result – the New AFCU Platinum Visa with Rewards! The AFCU Platinum Visa with Rewards has many of the same great features you have come to love, plus some new benefits: • The Same Low Rate We’ve Stood By Since 1997 – 10.9% APR* • No Annual or Cash Advance Fees • High Credit Limits up to $40,000** • FREE $100,000 Travel Accident Insurance • Easy Balance Transfers • Convenient Online Payment • Cash Access Wherever You See The Visa Logo • 24/7 Customer Service and Lost/Stolen Reporting • Zero Liability for Fraudulent Transactions
Same Low Rate Since 1997!
And the best part about the AFCU Platinum Visa is our New CURewards Program: • FREE Merchandise Travel Points – Earn one CURewards point for every dollar spent • 5,000 BONUS Rewards Points earned with your first purchase • Points are redeemable for once-in-a-lifetime experiences, travel and merchandise at www.curewards.com Plus, during our introductory period, get a 2% cash rebate credited to your primary share account for all balance transfers until April 30, 2009. We’ve eliminated the need for multiple rewards credit cards by creating a program that utilizes reasonable redemption levels for a variety of products and services. Why have a card that only offers rewards for one hotel or airline, when our card offers a large selection of merchandise and travel options. Join the hundreds of AFCU Platinum Visa Rewards cardholders who are already enjoying the benefits!
2 * APR = Annual Percentage Rate **Subject to loan policy limits. Restrictions apply, please contact a loan officer for details.
Time for a U-Turn? Refinance Your Auto Loan
Even a small decrease in your interest rate can make a difference.
If your car payments are driving your budget off-track, there’s a simple solution: Refinance your auto loans from other lenders with AFCU. You probably thought refinancing was just for mortgages. Considering the cost of a new vehicle these days, it also makes a lot of sense for auto loans. Even a small decrease in your interest rate can make a significant difference in your payment. And if you choose to extend your term, you can pay even less each month. Visit www.aerofcu.org for the most up-to-date loan rates*. We offer terms up to 72 months. Compare our rates to what you’re paying now – or bring us your current loan and let us run the numbers for you. Refinancing is quick and easy. Why pay more than you need to? Give us a call or stop by the branch, and we’ll be happy to take care of all the details. *Rates and terms subject to change without notice.
AFCU HelpYou with your Mortgage Needs Let
- We Make it Simple
Mortgage rates today are near record lows while home prices are at very affordable levels. And, the recent stimulus legislation provides first time home buyers with an $8,000 tax credit if they purchase a home before December 1, 2009. Thus, there has never been a better time to buy a home (and get low monthly payments) or refinance (to lower your interest rate). Let Aerospace Federal Credit Union assist with lowering your current monthly mortgage payment or with your new home financing. Our affordable mortgage loan products, competitive mortgage interest rates and low costs ensure that you get the most for your money. (Continued on next page)
Our mortgage programs include fixed rate loans with terms of 10 to 40 years along with FHA loans (the loan program that lets home buyers make a very a low down payment) and VA loans (the loan program designed to assist our military members buy a home or refinance). These programs meet both member needs and member budgets. If you would like to have lower monthly mortgage payments, check out our very competitive mortgage rates and low loan costs. Refinancing may help increase your monthly savings. If you want to buy a home now, or in a few months, get pre-qualified before you start looking. This puts you in a stronger negotiating position; you know what you can afford and the seller knows that you can close the deal. Pre-qualifying is easy; it only takes a few minutes. Call us today and talk to one of our friendly and helpful loan counselors.
Power of Home Equity For members who would like to do some home improvement, we have attractively priced home equity loan products. Spruce up your yard, redo a tired old room, energize your kitchen, fix a leaking roof, or just do some repairs, painting, and clean up.
Now is the Time Finally, while housing prices may remain low for some time, mortgage rates will most likely go up (sooner rather than later). They are subject to actions by the Fed, the Treasury, the global economy and almost everything else. Now is the time to take advantage of some of the lowest mortgage rates in recent history. We make applying for a mortgage loan easy; it only takes a few minutes. Visit www.aerofcu.org, click on “Apply For Credit” and scroll to “Mortgage Center.” This will take you to our online mortgage application (which takes about 15 minutes to complete). From here you can also check our competitive interest rates and review our low loan costs. For the right program, terms that will fit your budget, a great interest rate, low costs, and excellent member service, call one of our friendly and knowledgeable loan counselors at 800-795-2325, option 7 today. Don’t let this opportunity slip away!
Go Online. . . and Go Green You probably already know that online banking, online bill pay and e-statements can help save time, but the benefits go well beyond personal convenience.
AFCU makes it easy to do your part for the environment.
These terrific services can help the environment, too! According to a recent report*, about half of all U.S. households use online banking, with about half of those also paying bills online. If everyone started using these services on a regular basis, the results would be remarkable: • More than 16 million trees would be spared. • Fuel consumption would drop by 26 million BTUs – enough to provide residential power to San Francisco for a year. • Air pollution would be reduced by 3.9 billion pounds of carbon dioxide equivalents – comparable to taking 355,015 cars off the road. • Waste water would drop by about 13 billion gallons – enough to fill nearly 20,000 swimming pools. • About 1.6 billion pounds of solid waste would be eliminated – equal to 56,000 fully-loaded garbage trucks With a wide range of secure online services, we make it easy to do your part for the environment, while enjoying 24-hour convenience. Take advantage of AeroAccess today! Learn more about online banking, online bill pay and estatements by visiting our website at www.aerofcu.org. Please let us know if you have any questions.
AFCU, Your Privacy is our Policy
Aerospace Federal Credit Union understands the importance of protecting the privacy of our members. As such, we are committed to maintaining the confidentiality of each memberâ€™s financial records consistent with state and federal laws. The following sets forth our policies regarding our use and protection of your financial information. During the course of business, we collect the information you provide us, the information available from public records and credit reports, as well as your transactions with third parties. We use this information about you to administer your records and accounts, to process your transactions, to assist us in developing new products and services, and to fulfill any legal and regulatory requirements. Generally, we may share all information that we collect about you as described above. We share your non-public personal information with nonaffiliated third parties to complete transactions and maintain accounts and related records (such as data processing transactions and records). We may also share information with select nonaffiliated third parties if: 1) you request or authorize it; 2) the information is provided to help complete a transaction initiated by you; 3) the information is provided to a consumer reporting agency in accordance with the Fair Credit Reporting Act; or 4) the disclosure otherwise is lawfully required or permitted. Also, at times we may enter into agreements with other businesses to provide support services to us for one or more of our products, such as check-printing or data processing companies. Under certain circumstance we may also enter into joint marketing agreements with other financial brokers and insurance agents, to provide you with a broader range of financial products to choose from. Before entering into relationships with such entities, we require them to agree to safeguard our membersâ€™ information and to comply with all applicable privacy laws. If you decide to terminate your membership or become an inactive member, we will adhere to the privacy policies and practices as described in this notice. We restrict access to your personal and account information to those employees that need to know that information to provide products and services to you. We maintain physical, electronic and procedural safeguards that comply with federal regulation to guard your non-public personal information. If we change our privacy policies, we will notify existing members at the appropriate time. We strive to ensure that our records contain accurate information about you. If you see any inaccuracy in your statements, please contact us immediately. We will promptly investigate and make appropriate changes to update our records.
How Your Credit Score is Calculated... and what can you do to improve it Your credit score is a 3-digit number, designed to measure your credit risk. The most commonly used credit score, also called a FICO score, uses 22 pieces of data from the three major credit bureaus (Equifax, Experian and TransUnion) to come up with a number between 300 and 850. Generally, a score below 620 is considered high-risk, while a score over 750 is excellent. Lenders, landlords and insurance companies commonly check credit scores to evaluate an individual’s financial status, so a high score is beneficial in many different ways. What is included in your credit score? Here is the basic formula: • Your payment history – 35% • Your total debt – 30%
What’s not included? • Your income, occupation or length of employment • Your age, race, sex and national origin • Your address
• The length of your credit history – 15% • Amount of new credit – 10% • Types of credit used – 10% By evaluating the pertinent factors in your credit score, you can keep that important number as high as possible. For example, it’s a good idea to keep your debt ratio fairly low and avoid opening a lot of new credit accounts within a short period of time. The following steps can help improve your score over time: • Check your credit reports. Visit www.annualcreditreport.com to order your reports from Equifax, Experian and TransUnion. Make sure there are no errors or fraudulent accounts listed. • Pay your bills on time. Late or missed payments can really bring down your score. Consider using online bill pay, or set up automatic payments to keep yourself on track. • If you’re having trouble paying a bill, contact the creditor. Don’t ignore it. Many creditors will work out payment plans with you. • Transfer your high-rate balances to us – but keep your old accounts open. Don’t close your old credit cards, but don’t use them either. The available credit can help raise your score. Aerospace Federal Credit Union is here to support your financial well-being, so please come talk to us if you have any questions. For more information, visit www.myfico.com and click on “Credit Education.”
Online Resources Credit reporting agencies: www.experian.com • www.transunion.com • www.equifax.com Free credit reports: www.annualcreditreport.com Info on credit scores & money management: www.myfico.com • www.federalreserve.gov • www.fdic.gov
New ATMs Throughout February and March, AFCU replaced all three of our existing ATMs with brand new ATMs. The new machines have easy-to-read screens and improved reliability. They can be found in the following convenient locations: The Aerospace Corporation – Building A3, Cafeteria The Aerospace Corporation – Building D8, Cafeteria Los Angeles Air Force Base – Building 270, Gordon Conference Center Additionally, we placed a new ATM at the following location: The Aerospace Corporation – Building A9, Conference Center
Marvin Thomas, President/CEO conducts the first transaction at the new A9 ATM
Member Confession Recently I needed financing for a used truck. My first thought was to contact AFCU. After viewing the customary great rates online, I called and was gently directed to fill out the online loan application. Shortly after, I ended up at a dealership that I thought was giving me a great deal. However, as I was sitting at the dealership negotiating a price, I received a phone call from a familiar voice – an AFCU loan officer. After asking each other a few questions, I realized the vehicle I was currently looking at wasn’t right for me. Thank you for saving me from buyer’s remorse and for maintaining a great staff. I would like to express my sincere appreciation for the services Aerospace Federal Credit Union has provided my family for almost two decades.
- Paul H.
Rollover IRAs Have an IRA from an old job? Take your retirement account with you. When you retire or change jobs, you have lots of decisions to make. One of the most important is: what will you do with your retirement account? Basically, you have four choices: 1. Leave the money where it is (probably not your best option). Your investment choices may be limited, and you may be over-weighted in company stock. If you switch jobs several times, you could end up with a hodge-podge of retirement accounts that are hard to
3. Cash out your account (really bad idea). You will probably have to pay taxes and penalties, and you’ll lose out on future tax-deferred earnings. It may be tempting to take the money and run, but we’ve got three words of advice: don’t do it. 4. See us for a rollover IRA (now you’re talking!). We can arrange a direct rollover into a Traditional IRA. It’s simple, flexible and convenient. Your money will be safe and sound at a financial institution you know and trust.
keep track of. For more information simply call or stop by. We will be 2. Arrange an indirect rollover (not a good idea). In an indirect rollover, you take the money out of the account, minus 20% for tax withholding*. You have 60 days to establish a new account. But there’s a catch. You have to contribute the entire original amount, making up the 20% difference from your own pocket. You’ll recover the 20% at tax time, but handling a rollover this way is complex and a bit risky.
What will you do with your retirement account? *Subject to IRS withhholding regulation. For more information, visit www.irs.gov/pub/irs-pdf/p590.pdf
happy to evaluate your current situation and arrange the accounts you need.
Mark Your Calendar! Holidays (Branch Closures)* Monday, May 25, 2009 - Memorial Day Friday, July 3, 2009 - Independence Day
Monday, September 7, 2009 - Labor Day Monday, October 12, 2009 - Columbus Day
April Wednesday, April 1 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Wednesday, April 8 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo) Thursday, April 9 – AFCU Financial Seminar 12:15 - 12:45 ET (Greens 1, Rm. 6092 - Conference Rm. B,The Aerospace Corp., Chantilly) Thursday, April 9 – AFCU Financial Seminar 11:30 a.m. - 12 (A3 1607A, The Aerospace Corporation, El Segundo) Thursday, April 9 – AFCU Financial Seminar 12:30 - 1 p.m. (A3 1607A, The Aerospace Corporation, El Segundo) Tuesday, April 21 – A9 Grand Opening Celebration - 11 a.m. – 1 p.m. (A9 AFCU lobby, El Segundo)
May Wednesday, May 6 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Wednesday, May 13 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo) Thursday, May 14 – First Time Home Buyer Workshop 1 p.m. - 4 p.m. (Los Angeles Air Force Base, El Segundo)
June Wednesday, June 3 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Tuesday, June 9 – AFCU Auto Show 11 a.m. - 2 p.m. (Paulikas Mall, The Aerospace Corporation, El Segundo) Wednesday, June 10 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo) Thursday, June 11 – AFCU Financial Seminar 12:15 - 12:45 ET (Greens 1, Rm. 6092 - Conference Rm. B,The Aerospace Corp., Chantilly) Thursday, June 11 – AFCU Financial Seminar 11:30 a.m. - 12 (A9 1029A, The Aerospace Corporation, El Segundo) Thursday, June 11 – AFCU Financial Seminar 12:30 - 1 p.m. (A9 1029A, The Aerospace Corporation, El Segundo)
July Wednesday, July 1 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Wednesday, July 8 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo)
August Wednesday, August 5 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Wednesday, August 12 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo) Thursday, August 13 – AFCU Financial Seminar 12:15 - 12:45 ET (Greens 1, Rm. 6092 - Conference Rm. B,The Aerospace Corp., Chantilly) Thursday, August 13 – AFCU Financial Seminar 11:30 a.m. - 12 (A3 1607A, The Aerospace Corporation, El Segundo) Thursday, August 13 – AFCU Financial Seminar 12:30 - 1 p.m. (A3 1607A, The Aerospace Corporation, El Segundo) Thursday, August 13 – First Time Home Buyer Workshop 1 p.m. - 4 p.m. (Los Angeles Air Force Base, El Segundo)
September Wednesday, September 2 – Q & A 11 a.m. - 1 p.m. (A3 Cafeteria, The Aerospace Corporation, El Segundo) Wednesday, September 9 – Newcomers’ Orientation 11:30 a.m. (Los Angeles Air Force Base, El Segundo) *Please Note: On March 9, 2009, Aerospace Federal Credit Union moved from our long-standing location in Building A2, to the first floor of the newly constructed Building A9. ** Standard Aerospace Corporation and Los Angeles Air Force Base badge access requirements apply.
STANDARD Building A9, Suite 1100 2350 E. El Segundo Blvd. El Segundo, CA 90245
U.S. Postage PAID PSB 92799
Visit our New Website You probably noticed some big changes to our Website (www.aerofcu.org) in March. We launched a completely redesigned site in order to improve the loading time of our homepage, increase the ease of navigation, enhance our finance tips and tools sections and add entirely new features. We brought our “News & Events” section to the center of our homepage so we can convey important messages, alerts and event reminders to our members. Along with the redesigned homepage, featuring one-click links to the items you need access to most, you will notice that we changed the navigation. We believe the new layout will make finding information about our products and services even easier. Another item we added was the addition of the “change font size” function. This tool will adjust the text on our site up or down one size depending on the preference of the user.
(800) 795-2325 www.aerofcu.org
Additionally, we implemented a feature on our site that allows new members to join and fund an account online, or existing members to open and fund a sub-account online such as a checking account, share certificate or special purpose savings account. A new tool found in the lower left-hand corner of the homepage is to help alert members when items on our site, such as rates or important news, change. Sign up today to start receiving RSS feed notices (a timely email notification when rates or other important information on our site has changed). If you have any questions regarding the new look and functionality of the site, please don’t hesitate to call.