Champion Chatter - March 2007 A special section for Champion Credit Union’s young savers

Spring Is In The Air! The CCU young savers are off to a great start in 2007. The credit union loves to see our young savers making deposits into their accounts on their way to their bonus deposit in December. Spring is here! Signs of it are everywhere, including your credit union. If you are a saver that will be graduating soon, don’t wait to start planning now for college. You’ve filled out your college applications, completed your FAFSA… but have you planned for your finances? Prepare early by applying for a low limit CCU Visa, opening up a checking account with a MasterCard MasterMoney ATM/debit card or getting your student loan from the credit union. Get out of your chair and get into your credit union. Keep saving in your Champion Credit Union Young Savers Club account!

Spring, Graduation, Off To College - Be Smart About Credit Cards The TV program guests told appalling stories. "I owe more than $26,000 on my credit cards," one said defiantly. Another, confessing that he liked to treat friends to expensive dinners out, admitted, "I've trashed my credit rating." And another, insisting she could manage her bills, said she's charged a staggering $50,000 on 11 different credit cards. And the biggest jolt of all? These guests on TV's Oprah show all are college students in their late teens and early 20s. Two of them already have declared bankruptcy. Many of the student guests said they'd first gotten a credit card at the sign-up tables at college registration areas. One young man, a student who'd worked registration as a recruiter for a national card company, said, "[students] are the bait, and we're the sharks." He explained that he earned points for each student he signed up. All the participants said they'd learned some hard facts about using credit cards: Be realistic about your expenditures. If you're covering routine expenses with credit, you're living beyond your means. Understand the trap of minimum monthly payments. If you make a minimum payment--say the lesser of 2% of the balance or $25--on a $2,000 credit card balance, paying 18% interest, you won't pay off the balance for nearly 16 years, and you'll pay $3,328 in interest charges. If you can't keep up with one credit card, it's foolhardy to add more. More cards do not mean more money coming in--they mean more going out, and for a much longer time. Remember that each time you apply for a card (To get that t-shirt or duffle bag), your credit score decreases. Over time this can hurt your chances at better rates or approval for a loan for something you really want - like a house or car. When you and your parents agree that you're ready to handle a credit card, talk to Champion Credit Union. Our credit card carries a low interest rate, no annual fee, and a credit limit that gives you the convenience you need without putting you in a lifetime of credit jeopardy. Copyright 2002 Credit Union National Association, Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.