Benefits for AFGE Members

When you join the union, you have access to these AFGE benefits. These benefits are backed by the collective strength of over 10-million members of AFL-CIO unions. By using one or two of the programs, many members save as much as their annual dues.

These Money-Saving Benefits are Available Only to AFGE Members:

10 Ways To Improve Your Credit

For most of us, it's a mystery: you fill out a credit card application, send it in, cross your fingers, and hope for the best. And with most lenders, chances are about 50/50 that you'll get a card. That's because many issuers turn down about half of the applications they get. And just because you get a pre-approved offer does not mean you'll get the card. Even pre-approved applications will be evaluated before a card is mailed.

What can you do to maximize the chances that your application for credit will make it into the "yes" pile? Most credit card companies, as well as many other lenders, use credit scoring systems to help them decide who gets credit and who doesn't. A credit scoring system works like this: a lender takes a look at its customer base and compares those borrowers who have paid their bills on time with those who haven't. Using sophisticated computer programs, the lender tries to figure out what factors those customers have in common. For example, the lender may discover that people who move frequently are less likely to pay their bills on time than people who stay put. If that's the case, then they will look at how long new applicants have been at their current address in their scoring systems.

Credit scoring has become so sophisticated that, many times when you apply for a credit card, your application is reviewed and evaluated by a computer rather than a person. It may sound spooky but, in fact, lenders can review and approve a lot more applications that way.

It doesn't mean these programs are perfect though. If you have unusual circumstances like a recent illness with high medical bills, a divorce that hurts you financially, or other problems, you may find it very frustrating to try to get credit because you don't "look" like everyone else, credit-wise. Even then, however, there are almost always things you can do to improve your credit and your score.

Scoring programs will usually evaluate information in your credit report and your application. It's the information in your credit report that carries the most weight, though, so you'll really want to make sure that it's complete and accurate.

Here are some steps to help improve credit, including factors that are most likely to be considered for a credit score and strategies for using them to your advantage:

1. Create a Spending Plan

Take a month or two to make lists of every outlay of cash or cash equivalent, such as checks or debit cards used to make purchases or pay bills. Also track your income for those months. At the end, list every category of expense, and then write down the total amount per month (taking an average if you tracked expenses for two months) you spent in that category. You are now ready to make a spending plan. One goal is to generate enough cash each month to put toward savings - a necessary step in rebuilding your credit. Your list indicates how much you project spending each month. If the total exceeds your income or leaves you with little left over, you'll have to cut back. For example, if you love to read and spend a lot on books, you can reduce that amount by checking books out from the library or buying only at used bookstores. If you go out to lunch everyday, consider bringing your lunch.

2. Review your credit report and address any problems

Also note: Every time you apply for credit and someone looks at your credit report, an "inquiry" is added to your file. It doesn't matter whether or not your application was approved, what matters is the fact that someone accessed your credit report recently. Usually, more than four or five inquiries in the previous six months will count against you. So, if you're looking for a loan, be careful how many applications you submit. Once inquiries are on your credit report, you can't remove them, but after six months they probably won't count against you.

3. Add Positive Account Histories to Your Credit Files

Often, credit reports don't include accounts that you might expect to find. Some major commercial lenders don't report mortgages or car loans. Local banks or credit unions often don't provide information to credit bureaus. If your credit file is missing information for accounts you pay on time, send the credit bureaus a copy of a recent account statement and copies of canceled checks showing your payment history. Ask the credit bureaus to add the information to your file. While they aren't required to do so, they might - but may charge you a fee.

4. Add Information Showing Stability to Your Credit File

Creditors like to see evidence of stability in your file. If any of the items listed below are missing, send a letter to the credit bureaus asking that the information be added. Enclose any documentation that verifies information you're providing, such as your driver's license, a canceled check, a bill addressed to you, a pay stub showing your employer's name and address or anything else similar.

• Current employment - employer's name and address and your job title
• Previous employment if you've had your current job under two years
• Current residence, and if you own it
• Previous residence if you've been at your current place under two years
• Telephone number, especially if it's unlisted
• Date of birth
• Social Security number, or
• Bank checking or savings account number.

Again, credit bureaus aren't required to add this information, but they often do. Keep in mind: With most lenders, you'll score better if you've been in the same job or working at the same company for at least a couple of years. That doesn't mean you should stick with a job you don't like just to improve your credit score. But it does mean that if you are planning to leave your current employer and think you'll need to apply for credit in the next year or so, do it now. Similar to your job, lenders generally want to see that you've been living at the same address for a couple of years. This isn't always the case, though. In particular, lenders really like to target people who have just moved for new credit cards. Like employment, though, it's stability that lenders want to see, and living at the same place can help demonstrate it. Also, homeowners may score better than renters.

5. Get Credit In Your Own Name

If you are married, separated or divorced, you're entitled to a credit report issued in your own name. This is an excellent strategy for repairing your credit if:

All or most of your financial problems can be attributed to your spouse or former spouse, or you and your spouse have gone through financial difficulties together, but most credit was in your spouse's name only.

Even if both of you have had financial problems, separating your credit histories can help you both repair your credit. Contact all three credit bureaus and ask that a credit file be created in your name only. Then insist that the credit bureaus remove all accounts belonging to your spouse alone. If you want to obtain credit in your own name, complete credit applications in your name only.

6. Combine Your Credit History With Your Spouse's

If you are married, you and your spouse can ask that your credit histories be merged. If you have bad credit and your spouse has good credit, getting his or her credit histories into your file may be just what you need.

Write to the three credit bureaus and request that they merge your files. Once your request is complete, your file will contain your negative marks and your spouse's positive ones. Your spouse must then write the credit bureaus to have your credit accounts removed from his or her file. (Step 5.)

7. Get Credit Cards and Use Them Wisely

Even if you're really careful with your money, and have avoided debt all your life, if you don't have credit cards, your score will suffer. Using a credit or department store card will improve your credit history quickly. Most credit reports show payment histories for 24-36 months. If you charge something every month and make your payments on time, your credit report will show steady and proper use of revolving credit.

If you don't currently have a credit card, apply for one. It's often easiest to obtain a card from a department store or gasoline company. These companies usually open your account with a very low credit line.

Once you have your first card, apply for a regular credit card from a bank, such as a MasterCard, Visa, or Discover card. You may be eligible only for a card with a low credit line or high interest rate. If you make your payments on time, however, after a year or so you can apply for an increase in your line of credit or a reduction of the interest rate. (Hint: Many gasoline cards and small, local department store cards are not reported to the major credit bureaus unless you don't pay. So be sure to get at least one major credit card, like a MasterCard or Visa.)

If you don't qualify for a regular credit card, consider one of the following:

• Cosigned or guaranteed account - someone else promises to repay if you default. Be sure that the payment history is reported for both you and the cosigner or guarantor, not just the cosigner or guarantor.
• Authorized user account - someone will add you to an account as an authorized user; you can use the credit line but you are not responsible for repaying the charges. Again, make sure the payments are reported for you.
• Secured credit card - you deposit a sum of money with a bank and are given a credit card with a credit limit for a percentage of the amount you deposit.

8. Open Deposit Accounts and Pay Your Bills

Having both a checking and a savings account can improve your credit score. Don't worry about how much money you have in these accounts; it's really just important that you have one of each. Creditors look for bank accounts as a sign of stability. They also look for bank accounts as a source of how you will pay your bills. If you fill out a credit application and cannot provide a bank account number, you won't be given credit.

A savings account, too, will improve your standing with creditors. Even if you never deposit additional money into the account, creditors assume that people who have savings accounts use them. Having an account reassures creditors of two things: You are making an effort to build up savings, and if you don't pay your bill and the creditor sues you, it has a source to collect.

Paying your bills on time is one of the best things you can do to help your score. It really doesn't matter whether you pay off your accounts in full each month, or can only afford the minimum due. What's most important is that you mail those checks on time! If you've had late payments in the past, try from here on to make sure they're paid promptly. Eventually, the older, negative information will become less important.

Collection accounts, judgments and/or liens can also be a real red flag to lenders. Many will turn down your application if you have one of these accounts with an unpaid, outstanding balance. Make every effort to get them paid off as quickly as possible. Once you do, check your credit report to make sure they are listed as "paid" on your report.

9. Work With Local Merchants

Another way to repair your credit is to approach a local merchant (such as a furniture store) and arrange to purchase an item on credit. Many local stores will work with you in setting up a payment schedule, but be prepared to put down a deposit of up to 30% or to pay a high rate of interest. If you still don't qualify, the merchant might agree to give you credit if you get someone to cosign or guarantee the loan. Or you may be able to get credit by first buying an item on layaway.

10. Obtain a Bank Loan and Watch Your Debt

Take some money you've saved and open a savings account. Ask the bank for a loan against the money in your account. If the bank doesn't offer these types of loans, apply for a personal loan and offer either a cosigner or to secure it against some collateral you own. In either case, make sure the bank reports the loan payments to credit bureaus. (Hint: Finance company loans can actually hurt your score, so steer clear.)

It's amazing how much credit card debt some people can rack up - and then still get lots of offers for more. But, if you want to refinance your debts and obtain lower interest rates, having too much debt may be a problem. There are two things that lenders may consider here: how much debt you have in comparison to your income as reported on your application (your "debt-to-income ratio") and how close you are to your available credit limits. Since every lender is different, it's hard to say how much is too much, but paying down your debts can only help improve your financial life.

A Word About Credit Repair Clinics

It's simple. Avoid these outfits. Many of their practices are illegal. Some have been caught stealing the credit files or Social Security numbers of people who are under 18, have died or live in out-of-the-way places like Guam or the U.S. Virgin Islands, and substituting these for the files of people with poor credit histories.

Other credit clinics break into credit bureau computers and change or erase bad credit files. Still others suggest that you create a new identity by applying for an IRS Employer Identification number (EIN), a nine-digit number that resembles a Social Security number, and use it instead of your Social Security number. Not only is this illegal, but by using an EIN, you won't earn Social Security benefits.

These methods are just the tip of the iceberg. Credit repair clinics devise new schemes as often as consumer protection agencies catch onto their previous ones.

Even assuming a credit repair company is legitimate, these companies can't do anything for you that you can't do yourself. What they will do, however, is charge you between $250 and $5,000 for their unnecessary services.

Federal law regulates for-profit credit repair clinics. Under the federal law, a credit repair clinic must:

• Inform you of your rights under the Fair Credit Reporting Act
• Accurately represent what it can and cannot do
• Not collect any money until all promised services are performed
• Provide a written contract, and
• Let you cancel the contract within three days of signing.

Even with these regulations, you're better off steering clear. Don't confuse credit repair companies with non-profit credit or debt counseling agencies.

Consumer Credit Counseling Services (CCCS)

Financial problems can happen to anyone, regardless of income. Those problems can range from minor budgeting difficulties to major concerns that threaten bankruptcy. They may stem from a sudden loss of income, unexpected expenses or uncontrolled spending. Unfortunately, financial difficulties frequently aggravate existing problems and create new ones. People experiencing money troubles are sometimes surprised by how rapidly the situation affects their job performance and personal relationships.

CCCS helps people prevent further financial problems by providing instructions in the wise use of credit, budgeting and in family money management. CCCS has several locations throughout the Gulf Coast area.  to find a location near you please call 1-800-873-2227.

Counseling is available online or by telephone, and in person - in Spanish and in English.

Here's One Way to Start with a Clean Slate:

Good news for union members who have poor credit or little or no credit history: The Union Plus Secured Credit Card offers an opportunity to establish or re-establish a clean credit record - and it's a better deal than other secured credit cards, which often charge high annual and other fees.

The card is granted to approved members who make a deposit in an interest-bearing savings account. After 18 months of on-time payments, members are eligible to be reviewed for the regular Union Plus Credit Card.

The Union Plus Secured Credit Card benefits include:

• The Secured Credit Card gets reported to the credit bureau as a regular credit card, so other creditors who review your credit will see that you were issued a major credit card - meaning you can build or repair your credit report
• Deposit anywhere between $250 and $5,000 in an interest-bearing Secured Credit Card savings account, then charge against this line of credit every month
• No application fees
• A competitive fixed Annual Percentage Rate (APR)
• A low annual fee
• Eligibility to be considered for the regular Union Plus Credit Card after 18 months of on-time payments

Access: This benefit is only available to members of AFGE. If you are a member of AFGE, please login to the Members Only section. If you are not a member, but would like to find out how to become one, please visit the Join AFGE section.

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