Navigating Mortgage Lenders and Credit Checks: Your Roadmap to Informed Choices

If you need a mortgage but you’re worried about the negative effect on your credit from a credit check, remember the 45-day rule. Learn about that and more in our guide!

Q: What happens when a mortgage lender checks my credit score?

A: That’s a great question! Let’s explore the mortgage-shopping process, how credit checks can affect your score, and some helpful tips for choosing the right lender.

Understanding Credit Scores:

First off, what’s a credit score, and why should it matter to you?

Your credit score is a three-digit number that reflects your financial responsibility and creditworthiness. It considers factors like your payment history, credit utilization, types of credit, outstanding debt, and credit history. A higher credit score not only improves your chances of mortgage approval but also helps you secure more favorable interest rates.

Demystifying Credit Checks:

When you apply for a mortgage, the lender will likely request your credit report from one or more major credit bureaus. This process is commonly known as a credit check. The lender examines your credit report to evaluate your creditworthiness and determine whether you’re a suitable candidate for a mortgage. If any concerning red flags appear, it could lead to a higher interest rate or even a potential denial of your mortgage application.

Impact on Your Credit Score:

A credit check can have a temporary impact on your credit score. Each credit inquiry is noted on your credit report and might be viewed as a potential risk by lenders. However, the good news is that the effect is usually minor and short-lived. Your credit score typically bounces back within a few months.

Managing the Effect on Your Credit Score:

Contrary to common misconceptions, you don’t need to limit your mortgage applications out of fear of harming your credit score. Here’s the encouraging part: Multiple credit checks from mortgage lenders within a 45-day window are treated as a single inquiry on your credit report. Lenders understand that you’re in search of a single home loan, so these inquiries won’t be seen as multiple loan applications. This means you can take your time, explore various lenders, and gather loan estimates without worrying about negative consequences to your credit score.

Choosing the Right Mortgage Lender:

When seeking potential lenders, it’s always valuable to consider personal recommendations from family and friends who share your values. Additionally, you can explore online ratings and reviews of lenders to gain insights into their reputation and customer experiences. As you evaluate different options, prioritize lenders who demonstrate excellent customer service, transparent loan processes, reasonable closing costs, and fees, and offer favorable interest rates.

This knowledge will empower you as you embark on your homeownership journey. By understanding the impact of credit checks and making well-informed decisions, you can confidently select the mortgage lender that resonates with your beliefs and values.

AGCU is committed to helping you find the right home loan option for you. We offer a variety of products to meet your requirements. Whatever your lending needs are, AGCU is here to help you navigate the process.

Visit our Home Loan Center to get started!

Buying and Leasing a Car: What You Need to Know

Finding a new or used car that meets your criteria is a challenging endeavor in today’s market. If you need a new car right now, what’s your best choice? Let’s take a deeper look at buying versus leasing a car to help you determine which option makes the most sense for you.

4 Tips to Help You Decide: Should You Buy or Lease?

In every market, there are some drivers who are better suited toward owning a car and others who benefit more from leasing. The following are the top four important factors we suggest for you to consider when making this decision.

1. How long do you hold onto your cars?

If you like to swap in your cars for a newer model every few years, a lease may be a better fit for your lifestyle. On the flip side, if you tend to hold onto your cars for many years, consider buying a car instead.

2. What kind of insurance costs do you want?

Leases require full insurance coverage, which can be pricey. When you own your vehicle, though, the amount of insurance coverage beyond what is required by law is your decision.

If you like having full protection that includes GAP insurance (GAP Insurance pays the difference between what you owe on a car and its true value if it’s totaled in an accident or stolen), then a lease may be a better choice for you. If you tend to purchase just minimum coverage, you may be better off purchasing your vehicle.

3. How much mileage do you typically drive?

If you usually put more than 10,000 miles on your car each year (the standard milage amount allowed by most leasing companies before charging extra), you may be better off buying a car. Keep in mind, though, that you’ll still need to pay for those miles in depreciation costs of the car.

4. Are you willing to pay for your vehicle’s maintenance?

When you lease a car, most maintenance costs are on the leasing company. You’ll need to pay for anything related to wear and tear of the vehicle, but most other repairs will be covered. You’ll also have the option to pay extra for tire protection, and dent and scratch insurance.

When you own your car, you’ll be footing the bill for all these costs, plus any maintenance needs. To minimize these costs, don’t finalize a car purchase without first ensuring it’s in good working order. You can do this by using its VIN (vehicle identification number) to look up its car history and by having it professionally inspected by a mechanic.

Long Term Effects of Leasing or Buying a Vehicle

While individual circumstances vary, in general, you can expect the cost of purchasing and leasing a vehicle to break even at the three-year mark. While a lease may offer you cheaper monthly payments, you’ll likely earn back two-thirds of the price you paid on a car if you sell it after three years.

If you’re choosing between buying or leasing a car, be sure to weigh all variables carefully before making your decision.
When you’re ready to make your decision, a great option to consider is applying for an auto loan face-to-face with AGCU’s video banking service.

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

Adulting with Faith: Biblical Financial Advice for Young Christian Adults

Adulting Like a Boss

Achieving Financial Freedom: Tips for Young Christians.

Congratulations on taking the first step towards achieving financial freedom and adulting like a boss! We know that the thought of managing your finances can seem daunting, but don’t worry, we’ve got you covered with some tips and tricks to help you along the way.

As you start taking on more responsibilities and managing your finances like a pro, don’t forget to have fun and enjoy the journey. Remember, being an adult doesn’t mean you have to stop having fun! Make time for hobbies, spend time with friends and family, and don’t be afraid to try new things. And always remember, no matter how challenging adulting may seem, you’re not alone! As a Christian, you have a loving God who is with you every step of the way.

Remember, with a little bit of guidance, a lot of hard work, and a healthy dose of humor, you can adult like a champ!

Here are some tips to get you started:

• Set financial goals: Start by setting clear financial goals. Whether it’s paying off student loan debt, saving for a down payment on a home, or building an emergency fund, having clear goals will help you stay motivated and on track.
• Create a budget: A budget is essential for managing your finances and achieving financial freedom. Create a budget that includes all of your income and expenses, and stick to it as much as possible. AGCU has handy budget tools to help track and manage your finances. Log in to Online Banking, or Become a Member today and get started!
• Minimize debt: High levels of debt can be a major obstacle to achieving financial freedom. Focus on paying off high-interest debt first, and consider strategies like debt consolidation or refinancing to make your debt more manageable.
• Live below your means: Living below your means is key to achieving financial freedom. Look for ways to cut back on expenses, such as eating out less or finding cheaper housing options.
• Increase your income: Consider ways to increase your income, such as taking on a side hustle or seeking out promotions or new job opportunities. Increasing your income can help you pay off debt faster and save more money.
• Invest in your future: Investing in your future is an important step toward achieving financial freedom. Consider investing in a retirement account or a diversified investment portfolio.
• It’s worth noting that many young adults still rely on financial support from their parents. According to a recent survey, about 50% of adults aged 18-34 receive financial support from their parents, with the average amount being around $3,000 per year. While receiving financial support from parents can be helpful, it’s important to work toward financial independence and not rely on this support long-term.

Achieving financial freedom as a young adult requires discipline, goal-setting, and a willingness to make sacrifices. By creating a budget, minimizing debt, living below your means, increasing your income, and investing in your future, you can take steps toward achieving financial freedom and securing your financial future.

Intro To Adulting :
Saving :
Debt :
Income :
Employment :
Budgeting :
Retirement Planning :
Housing – Buy Vs. Rent :
Transportation- :
Health Care Costs :
Family Financial Obligations:
The Biblical Perspective On Money Management:
Setting Financial Goals:
Creating A Budget:
Tracking Expenses:
Saving For Emergencies:
Managing Debt:
Building Credit Responsibly:
Understanding Interest Rates:
Planning For Retirement:
Investing Basics:
Transportation Expenses:
Giving And Tithing:
Avoiding Financial Pitfalls:
Choosing The Right Bank Account:
Finding Ways To Save Money On Everyday Expenses:
Using Coupons And Discount Codes:
Avoiding Unnecessary Purchases:
Using Credit Cards Wisely:
Making A Shopping List And Sticking To It:
Budget-Friendly Meal Planning:
Avoiding Lifestyle Inflation:
Side Hustles And Ways To Earn Extra Income:
Paying Off Student Loans:
Understanding Insurance Options:
Preparing For Financial Emergencies:
Prioritizing Financial Goals:
Continual Financial Education And Growth:
Saving For A Down Payment On A Home:
Understanding The Real Cost Of Owning A Car:
Planning For The Cost Of Higher Education:
Developing A Long-Term Financial Plan:
Avoiding Scams And Fraudulent Financial Schemes:
Discussing Finances With A Significant Other Or Spouse:
Finding The Right Financial Advisor:
Creating A Will And Estate Plan:
Planning For Charitable Giving:
Creating A Financial Legacy For Future Generations:

APR=Annual Percentage Rate. *Annual Percentage Yield (APY) 4.33% effective date 2/8/23 and subject to change without notice. New money only. Minimum balance of $10,000 required. Penalty for early withdrawal will apply.

AGCU, The Secure Place To Save Your Money

When you deposit money at AGCU, safety should be at the top of your priority list. One of the primary reasons to use a financial institution is to keep your money safe.  It’s a great idea for members to save regularly to build economic security for themselves and their families.

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

Like us on Facebook!

Savings Account vs. CD vs. Money Market Account: Which is Right for You?

Shopping around for the best savings account can make a significant impact on your financial well-being. With inflation nibbling at our budgets, finding an account that offers decent returns has become more crucial than ever. Certificates of Deposit (CDs) and money market accounts are two alternatives to traditional savings accounts that offer higher interest rates with minimal risk. But how do you choose between them? Let’s explore the factors to consider and help you decide which option best suits your needs.

CDs and money market accounts offer competitive interest rates with low risk, but they serve different purposes based on your financial goals and needs.

CDs: Locking in Returns for a Fixed Term

A Certificate of Deposit (CD) operates as a time-bound investment where you deposit a lump sum for a fixed term, typically ranging from three months to five years. In exchange, you receive a fixed interest rate, and at the end of the term, you get back your initial deposit plus the accumulated interest. CDs are NCUA-insured and do not lose value, making them a safe investment option.

Pros and Cons of CDs:

Pros:

• Higher interest rates compared to regular savings accounts.
• Certainty of returns; you know exactly how much you’ll earn and when.
• Safety and security; CDs are NCUA-insured and do not lose value.

Cons:

• Early withdrawal penalties may apply if you need access to funds before the CD matures.
• Opportunity cost if interest rates rise during the CD term.
• Long-term returns may be lower compared to diversified investment portfolios.

Money Market Accounts: Balancing Flexibility with Returns

A money market account blends features of both checking and savings accounts. You can deposit and withdraw funds as needed, typically via checks or a debit card. Money market accounts offer higher interest rates than regular savings accounts, making them an attractive option for savers looking to earn more while maintaining access to their funds.

Pros and Cons of Money Market Accounts:

Pros:

• Competitive interest rates higher than regular savings accounts.
• Flexibility to access funds easily through checks or debit cards.
• NCUA-insured, ensuring the safety of your deposits.

Cons:

• Minimum balance requirements may be higher than regular checking accounts.
• Withdrawal limitations on number of transactions per month.
• Potential fees for falling below the minimum balance or exceeding withdrawal limits.

Choosing Between a CD and Money Market Account: Consider Your Needs

Deciding between a CD and a money market account boils down to your financial goals and timeline. Here’s when each option might be more suitable:

When a Money Market Account Might Be a Better Choice:

• You prioritize flexibility and need access to your funds for unexpected expenses or emergencies.
• You want to continue making contributions to your savings over time.
• You maintain a sufficient balance to meet minimum requirements and maximize interest earnings.

When a CD Might Be a Better Choice:

• You have a lump sum of money that you won’t need access to for a fixed period.
• You have a specific financial goal with a defined timeline, such as saving for a down payment or a future expense.
• You anticipate a decline in interest rates and want to lock in a higher fixed rate for guaranteed returns.

In Conclusion:

CDs and money market accounts offer safe and reliable ways to earn higher interest on your savings. Choosing between them depends on your individual financial circumstances, goals, and need for access to funds. By evaluating the pros and cons of each option and considering your long-term objectives, you can make an informed decision that aligns with your financial strategy and helps you achieve your savings goals effectively.  Contact Member Care to Open a CD or Money Market Account Today!

Start a Video Banking Call or apply through an online application.

Speak face-to-face with an AGCU Video Banking Representative from anywhere.
Give it a try today! Video Banking Hours (CST): Mon – Fri: 9:00 a.m.- 5:00 p.m.

Apply through online application.

Do you have questions regarding becoming a member or opening an account? Call (417) 831-4398 or fill out our contact form and we will contact you!

Member Spotlight

Lynne Hall

If you visited one of our branches during the Christmas season the past two years, you may have noticed some extra decoration on our windows.

In light of celebrating the birth of Jesus Christ and bringing extra joy to the hearts of our members during the winter season, AGCU hired Lynne Hall to decorate our windows.

After hearing numerous compliments from our members on the presence of her art, we can’t help but highlight her talent and blessing to our branches and members.

We reached out to her with a few questions, and we thought you might want to hear the heart behind the beautiful art that you see every time you visit one of our branches.

We are always proud to highlight the talent and dreams of our members, and we are excited to tell you more about Lynne Hall.

When did you first decide to follow your heart and call to be an artist? 

In 2016, my first grandbaby was on her way, and I had always wanted to draw more realistic portraits, so I took a course and fell in love with the process!

What inspires you to create?

I love how God created each of us and everything so uniquely-I’m intrigued by the intricacies of His creation. I especially love to capture the candid looks on a child’s face, or really anyone’s face, the personality of people & their furry friends, as well as the color and beauty of flowers, boats on the water, sunsets on the beach… I’m also inspired by other artists, I love seeing people thrive in what God has called them to do.

What advice would you give other creatives if they wanted to start their own business?

Creative wise- I’ll forever be working on this. Create lots and lots of art and find those things that inspire you; that don’t feel like work, by doing so, others will take notice because you’ll likely be doing what God has put on your heart to be a blessing to others and they can see that in you.

Financially-set up your business properly, take care to treat it like a business

Relationally -learn about the people you meet, what inspires them and you’ll be able to create something really special that they’ll treasure and will fill your heart too!

Who inspired you most to follow your heart in your career choice? 

First, the prompting of the Holy Spirit to act upon long held desires.

My portrait instructor, Audrey Bottrell Parks, inspired and encouraged me that I could do it. My family was also a great encouragement.

Ultimately, my good friend, Kellie Jones, who when she saw some of the portraits I had given away as gifts, exclaimed-”why are you hiding your talent:)”  Before that, I don’t know if I realized that this could be the thing God was giving me to do to love on others and make some sort of an impact on the world around me.

How do you continue to find joy in your work? 

It is not hard to find joy in my work. When you get to create something that people really treasure, it makes even the harder days or the ugly stage of the work, enjoyable!

What is your favorite part about your job?

The look on the face of the recipient-lots of joyful tears, hugs and smiles!  That truly fills my heart!

How could AGCU help you more in your career as an artist?

I see that you have financial services that help business owners.  Do you also offer assistance for the person who are not necessarily business minded such as, how to set up your business properly and other details of running a profitable business? I love that you are spotlighting your members, what a great opportunity to learn about other people in our area!

AGCU’s Answer: We do not have a business advisory, but we are always happy and willing to answer any business related questions, and will do our best to assist in any needs requested.

If you could be a part of or create one thing before you retire, what would it be or what would you do?

I have lots of creative dreams, so this is tough. However, my husband and I have talked, over the years, about creating some books that include his creative writing and my artwork that can inspire, uplift and make an impact.

Another thing would be to be a part of larger mural projects alongside other muralists and communities to create a beautiful work of art that has that same impact – inspire and uplift. I love to travel, so I would love to see that take place in many locations!

Because I feel like I was so slow to realize that this thing I take so much joy in is available to others, I want to do workshops or classes to show others that sometimes through the creative process, letting go of perfectionism and doubt, God shows us something.  He has created us all to be creative, whether it’s through fine arts, being good at organizing, business mindedness, that thing you do that you take for granted and think everyone can do this. God wired you to make an impact on this world, so we can all honor Him and do that thing to the best of our ability and to His glory!

Who or what is your true inspiration?

I would have to say, God’s creation. I get inspired to create by seeing the beauty all around. Sometimes it’s the fullness I feel from beautiful colors or flowers, landscapes, sunrise and sunset. Sometimes it’s adorable furry creatures. Often, it’s precious faces, young and old whose expression tells part of their story. I think all of it tells God’s story and we can love and appreciate Him through it all.

Thank you Lynne, for reminding us of the joy of Jesus Christ during this winter season, and your beautiful artwork at our branches that brightens the hearts of our members.

You are appreciated.