For many people, the first step to improving your credit rating is knowing what it is, and understanding how it became negative in the first place. The Fair and Accurate Credit Transactions Act of 2003 entitles you to a free credit report from each major credit bureau once a year. You can order your credit report online from annualcreditreport.com. For the most detailed explanations on your FICO scores, go to the credit education area at myfico.com.

Most negative information can appear in your credit report for seven years. This includes lawsuits, judgments against you, paid tax liens, accounts sent to collection, criminal records, late payments, and overdue child support. Bankruptcies can stay in your credit report for up to ten years.

Credit scores below 620 are generally considered sub-prime, at least in the mortgage world. Of course, this definition changes all the time. But, if you are below 620, it is time to do something about it.

Creditors like to see evidence of stability, so if any of the following information is not in your report, send it to the bureaus and ask that it be added: your current employment, your previous employment (especially if you’ve been at your current job fewer than two years), your current residence, your telephone number (especially if it’s unlisted), your date of birth, and your checking account number. Again, the credit bureau doesn’t have to add these, but often will.

If you don’t have a credit card, apply for one. If your application is rejected, try to find a cosigner or apply for a secured card — one issued after you deposit some money into a savings account, against which you can charge purchases.

Creditors like to see evidence in your credit report that you have a history of paying off credit on time. If you have a credit card, use it every month. Make small purchases and pay them off to avoid interest charges. But, as always during challenging times, be sure to spend within your means.

Ideally, you should carry one or two financial institution credit cards, maybe one department store card, and one gasoline card. Creditors want to see that you can handle more than one credit account at a time. But use all of the cards only if you can pay the charges in full each month — don’t build up interest charges.

It usually takes about two years to rebuild your credit so that you won’t be turned down for a major credit card or loan. After four years or so, you should be able to qualify for a mortgage. So, be patient, and stick to your plan. And, remember, CoastHills offers free credit counseling services, so don’t be afraid to ask us for help.

At CoastHills, our vision is “Making a Difference in our Neighbors’ Lives.” This commitment expands beyond the 61,000 members of our Credit Union.  It speaks to being difference makers in all of the great communities that make up the Central Coast.  The employees and volunteer board members that make up our staff volunteered more than 4,000 hours of community service last year, and are on pace to exceed that amount in 2011.

Not only does community service provide the foundation for countless organizations, it also provides many benefits for those who do the volunteering.

Healthy

Experts will tell you that when you focus on someone other than yourself, it can be essential in reducing tension. Plus, the satisfaction of providing a helping hand and the joy that comes from the physical nature of volunteering can help strengthen your immune system and increase your overall health.

There are many ways to volunteer your time, so look for an activity or organization that provides enjoyment for you. A great way to get involved is to provide support for community resources that impact you or your family, or for some cause that benefits people you care about. Once you find a good match, the time spent on volunteer work really becomes a labor of love rather than laborious.

Wealthy 

The estimated value of volunteer service is more than $15 per hour. That means that for every 10 hours a person volunteers his or her time, that enables $150 to be spent on materials such as food, clothing, research, or other valuable resources.

Wise

When you take an active role in your community, you become more aware of the goings on around you. It is easy to sit on the sidelines and be critical of decisions that are made or of programs that are implemented. But when you take part in the process, you develop a stronger appreciation for it. Plus, identifying and utilizing the necessary resources to solve the needs of your community is often an awakening experience.

The bottom line in volunteer service is simple: It is a great investment in your community and in the people who live in it. So, make a goal to get involved, to volunteer your time, and to make a difference in your neighbors’ lives.

That’s So CoastHills.

Whether you need a bigger car, a more reliable car or a more fuel-efficient car, now could be a great time to get into the car buying mode. But before you venture onto any vehicle buying web sites or set foot on a sales lot, follow these easy tips to help make the best decision.

Tip 1: Determine how much you can afford.

This seems logical, but the smell of a new car under the bright lights can cloud your budget judgment and it is all too easy to overspend. The “gotta have” feeling can be overwhelming. Affordability is more than just payment. You have to consider the cost of fuel, insurance and maintenance.

Tip 2: Shop for the best rate before you buy.

Most of us need to borrow money to buy a vehicle. If you are one of us, be sure to locate for the best loan rate before you begin your new vehicle quest. CoastHills will “pre-approve” you for a specific rate and loan amount without any obligation. That way you will know exactly what you can afford, and you won’t waste time and energy shopping for something out of your affordability range.

Tip 3: Select the type of vehicle.

With your budget figure firmly in hand, begin your search by selecting the type of vehicle (passenger car, SUV, pickup truck, etc.) Once you determine the type, consider all manufacturers. Each manufacturer will have detailed information on their website about safety, reliability and performance. Check them all and then make your final list.

Tip 4: Finding the perfect fit.

Car dealers used to figure that a person looking for a car would make a decision in two or three days at the most. Now, there is so much research available, buyers often take weeks to make a decision.  If you want it, the information is literally at your fingertips.  You can use online sites to find out technical features, price comparisons, and consumer reviews.  Once you have located a few vehicles that fit your criteria, test-drive each one of them.

Tip 5: Getting the best deal.

Be sure to get the total price of the car, including any add-ons features such as security alarms, exterior/interior protection coating, etc. There can be a big difference between the M.S.R.P. and dealer sticker price. Don’t be afraid to ask! And, speaking of asking, if you find what you want, we encourage you to tell the dealer that you want the CoastHills loan.   Our rates have never been lower.

While the process of buying a car can be daunting, you want to feel good about your purchase. There is nothing like the feeling of knowing you got the best car, for the best price.