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A recent study by LendingTree found that in 2021, 95.20% of adults in San Diego, California had at least one active credit card. But how many of us are using our credit cards to their fullest potential? When used responsibly, a credit card is a powerful financial tool to have in your toolbox and, since you probably already have one, we want to help you maximize its effectiveness.

1. Pay on time and never skip a payment
Making your credit card payment on time each month is the first crucial step to avoid inconvenient late fees (which can often be as much as $39). Creating a personal payment schedule, setting yourself reminders, or implementing automatic payments are all great ways to ensure the good standing of your credit score – and your overall credit health – over time.

2. Pay off your balance each month, if possible
Think of your credit card as a temporary loan to yourself. Would you loan someone money when you know they don’t have the means to pay you back? The same idea applies when using your credit card. Having the funds to pay off your entire outstanding balance each month not only keeps you from paying any interest, but also boosts your credit score substantially (since 35% of your score is based on your payment history).

If you plan to make a large purchase with your credit card but don’t have all the cash to pay down your entire balance immediately, make a strict timeline to pay it off over the course of a few months. Keep in mind that you’ll have to be disciplined and pay a bit in interest for the luxury of spreading out the payments.

3. Pursue rewards strategically
Lots of credit cards offer users reward points for dollars spent on specific spending categories. Take advantage of these perks but proceed with caution! Only pursue reward points by making big purchases when you are certain you can pay off your balance in full at the time your next payment is due. Otherwise, the amount in interest you accrue will cancel out any rewards you’ve potentially earned.

4. Know your limit
Experts have long recommended that cardholders who carry a balance aim to keep the utilization rate below 30% to keep their score strong. For example, if your credit card limit is $3,000, your outstanding balance should always stay under $900. If you find yourself struggling to keep this up, consider asking for a credit line increase. Increasing the limit to $5,000 would allow for a safe outstanding balance of $1500, effectively giving you more room to spend without hurting your credit health in the long run.

5. Do an audit of where you spend the most money
Use your credit card as a budgeting tool. Unlike cash purchases, credit cards allow us to log on and check our accounts often to keep track of spending specifics. Do an assessment of where most of your money is being spent, and then choose a primary credit card whose reward benefits compliment your largest spending category. For example, if you consider yourself a food lover, you might take interest in the Wheelhouse Visa Platinum Rewards Credit Card. Right now, you earn five times the reward points per $1 spent on takeout such as Blaze Pizza, Luna Grill and R&B Tea. Check out Wheelhouse Credit Union’s other credit card options here: https://www.wheelhousecu.com/visa-credit-cards/

All in all, using your credit card shouldn’t be a daunting task. Keeping your payments timely, your outstanding balance low and your reward points in check are all positive steps towards keeping debt low and getting the most out of that piece of plastic in your wallet.

Plan for the Next Heat Wave

As we continue making our way through this years’ heat waves, it may be a good time to plan for the next – since it typically remains hot in San Diego well into October, while Fire Season can last all the way through November.

The following is a list of things to do during a heat wave to keep you, your household members, and your pets safe:

  1. Drink plenty of water to keep hydrated. Avoid alcohol, tea and coffee as these can dehydrate you.
  2. Keep out of the sun and avoid exercising between 11:00 am and 3:00 pm – the hottest part of the day.
  3. Pay special attention to those most at risk, namely elderly people and small children; ensure that they’re comfortable and staying out of the sun as much as possible.
  4. Ensure pets have a constant supply of fresh water, do not let them outside for long periods of time and never leave them in a car.
  5. When letting your pets outside, be mindful of the asphalt temperatures. The ground may be too hot for their paws to walk on, so you’ll want to wait until it’s cooler or have them wear shoes.
  6. Turn on your air conditioning to keep your house cool and comfortable, relying on solar, including solar batteries, whenever possible.

If you want to beat the heat while at home, but not break the bank with your electricity bill, you can still install solar or get a solar battery. To learn more about how solar can help you through the next heat wave and reduce your monthly expenses, visit WheelhouseCU.com/solar.

How to Fund and Set Up a Home Office and Classroom

Many of us have found ourselves in a new reality this year, one that comes with new work patterns, school environments and more. As our Stay-at-Home efforts continue, we thought it would be helpful to provide some insight into how to fund and set up a functioning home office, one that can be used for telecommuting and/or academics.

Step 1: Determine How Many Office Spaces You Need

First off, determine how many office or classroom spaces you need. Depending on the number of people working from home and taking classes online, you may need more than one office or classroom space. Whether it is one or ten, it’s important to know exactly who needs dedicated space to complete their tasks, prior to setting everything up.

Step 2: Choose Dedicated Areas

Once you have a good understanding of how many office spaces you need, identify where each person will be working. In some cases, you may all need to work in one area. In others, you may be able to identify a space in separate rooms for each worker. Ideally, a home office should be in a quiet area that allows some privacy. This is especially important if you share your residence with children or roommates.

It is important to note, children who are participating in online classes may need some supervision; therefore, you may want to pick a location for them to work that is within your eyesight.

Step 3: Make a List of What You Need

Take a moment to make a list of all of the items each person will need to fulfill their responsibilities. Then, create a budget to purchase the items you currently do not have. The following is a good start of what you may need:

  • Computer, Laptop, iPad
  • Monitor
  • Wifi
  • Desk
  • Comfortable Chair
  • Good Lighting
  • Cell Phone and Charger
  • Printer
  • Cabinet
  • Paper, Pens, Notepads, Stapler, Calculator, Highlighters
  • Fire Safe
  • Shredder
Step 4: Pay for Your Office Needs

Since the need to work and learn from home came out of the blue, you may not have the savings to purchase what you need. But not to worry, there are several ways to pay for the expenses. Credit cards are an option; however, they tend to have high interest rates. An alternative is a Personal Loan, like the low-rate Life Loan from Wheelhouse. With a fixed-rate and term and a minimum loan amount of $500, you can easily make a plan to pay off these expenses quickly. To learn more and apply for a Life Loan, visit WheelhouseCU.com/lifeloan

Step 5: Security

Once you’ve completed these four steps, you can set up your new office and/or classroom space in no time! With your spaces up and running, you should ensure your system(s) are always up-to-date and secure. You can update your systems manually or turn on Auto Update. Install an anti-virus program and make sure it updates daily.

Step 6: Minimize Distractions

The last thing to remember is to minimize distractions and do your best to keep your personal life from spilling over into your business life—and vice versa. Create a schedule, which includes breaks and lunches, and remember to walk away from your office space at the end of the day.

 

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