Redstone Federal Credit Union

14 | r e d f c u.o r g Need a "get out of debt" plan or just need someone to read over your credit report with you? Redstone Federal Credit Union's accredited financial counselors can help. Do not email any account or personal identification information. Should I put money away in my emergency savings account or pay off debt first? Ask any of the top money gurus from Suzie Orman to Dave Ramsey and they will tell you to save first before starting to pay down debt. Life happens fast, so you have to be ready. Having at least $1,000 in an emergency fund will keep your budget on track so you can continue to pay off debt. It will also save you from going into more debt while going through a traumatic event. While building your emergency savings, continue paying the minimum on debts. Once the fund is in place, focus all of your energies on paying off the debts. YOU ASK – WE ANSWER! As a college student, how can I get credit if I've had none in the past? Building a solid credit history while still in college can be challenging, but will be a great benefit to you once you have graduated. ere are several ways you can start building a credit history while still in college. Some of the most common ways are: • Open a secured credit card account. With a secured card, you will have to put a certain amount of money down as a deposit in exchange for receiving a credit card with a small credit limit. e amount you deposit, usually in a savings account, is used to secure the card and cover the charges should you fail to make payments. Make sure that lender reports secured accounts to the credit bureaus. • Ask a parent or other family member to add you to one of their credit card accounts. Becoming an authorized user or a joint account holder on a parent or family member's credit card account can help build your credit. As a joint account holder, you are fully and equally responsible for payments on the account, so be aware that any late payments will affect you also. If you are only an authorized user, you will not be financially responsible for making payments, even though you are able to use the account. • Take out a small personal loan or student loan in your name. If you have the means to make monthly payments, consider applying for a small loan in your name. As with a credit card, you may need a cosigner in order to qualify for the loan. If you have student loans in your name, those loans can also help you build credit. No matter what type of credit account you start out with, the important thing to remember is to make every payment on time. Call Redstone at (256) 722-3796 to schedule an appointment with an accredited financial counselor or send your financial questions to aspire@redfcu.org. Money Repair

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