Credit plays a pivotal role in shaping financial well-being and future prospects. Alive Credit Union members stand to benefit immensely from a firm grasp of credit fundamentals and the role it plays in financial decision-making. In this article, we'll delve into the importance of credit for Alive Credit Union members and break down the elements of a credit report and how each factor influences credit decisioning.

The Importance of Credit

Access to Financial Products

Credit is the key that unlocks access to various financial products. For Alive Credit Union members, a strong credit history can lead to better loan options, lower interest rates, and increased chances of securing mortgages, auto loans, and personal loans.

One highlight you can share with members that differentiates Alive from other Financial Institutions is our in-house loan decisioning.

Financial Stability

Creditworthiness is a significant indicator of financial stability. A positive credit report can help members secure lower insurance premiums, as well as rental and utility agreements with more favorable terms.

Future Investment Opportunities

For members aspiring to achieve long-term financial goals such as homeownership or entrepreneurship, credit serves as a foundation. A robust credit history allows for attractive investment opportunities and opens doors to partnerships and business ventures.

Understanding the Credit Report

A credit report is a detailed record of an individual's financial history, compiled by credit reporting agencies. Lenders and financial institutions use this report to assess a person's creditworthiness. The report is divided into several key sections, each contributing to the overall credit decisioning process.

Personal Information

This section contains your personal details, including your name, address, Social Security number, and employment history. While this information doesn't directly affect your credit score, it helps verify your identity.

Credit Accounts

This portion lists all your credit accounts, such as credit cards, loans, and mortgages. It includes information about the account balance, payment history, and credit limit. Timely payments contribute positively to your credit score, while missed payments can have a detrimental effect.

Credit Inquiries

Whenever you apply for new credit, a record of this inquiry is added to your credit report. Multiple inquiries in a short time can indicate financial distress and potentially lower your credit score.

Public Records

This section includes information about bankruptcies, tax liens, and judgments. These negative items can significantly impact your credit score and creditworthiness.

Collections

Accounts that have been sent to collections due to non-payment or delinquency are listed here. These accounts can have a severely negative impact on your credit.

Credit Utilization

This factor represents the percentage of available credit that you're using. High utilization rates can hurt your credit score, so it's advisable to keep this ratio low.

Credit Age

The length of your credit history matters. A longer credit history can positively impact your credit score, as it provides more data for assessing your creditworthiness.

Credit is a powerful financial tool that Alive Credit Union members can harness to secure their financial future. Understanding the elements of a credit report is essential for assisting our members in making informed financial decisions. As a trusted Alive team member, your role in imparting this knowledge is invaluable, as it empowers individuals to make informed choices and improve their financial well-being. By fostering a deeper understanding of credit among your community, you are playing a vital part in their financial success and the growth of your community.

Since 1948, International Credit Union Day has been celebrated on the third Thursday of October. On this day we celebrate the spirit of the global credit union movement. This is a day to reflect on the history of the movement, celebrate achievements, and share experiences.

Where it all began

In 1846 Germany suffered from a crop failure that led to famine. Hermann Schulze-Delitsch took it upon himself to make a difference in his community. He founded a cooperatively owned mill and bakery but wanted to more. In 1852 he founded the first “people’s bank” which provided credit services to entrepreneurs. Meanwhile, Friedrich Wilhelm Raiffeisen established a credit society also in Germany in 1849. His credit society grew until in 1864 he organized a credit union for farmers.

Credit Unions Come to North America

Credit Unions grew popular throughout Europe and to communities around the world. In 1901, Alphonse and Dorimene Desjardins founded La Caisse Populaire de Levis. With a simple deposit of ten cents, he began the credit union movement in North America. Shortly after the credit union’s successful launch, Alphonse teamed up with two Americans, Edward Filene and Roy Bergengren to establish credit unions in the United States.

Credit Unions Today

Today, Credit Unions are well established throughout the world. There are credit unions in 118 countries and 375 million members worldwide. We have endured financial storms through the years and due to the movement’s principles and self regulation; have never needed a government bailout. Credit Unions are still the most trusted financial institution and will continue to stay true to their purpose of “people helping people” into the future.

How to get involved

This year, for International Credit Union Day, we will be highlighting credit unions from around the world, past and present. We will have signage in English and Spanish for all of our branches. We are sending out coloring sheets for you and the members to use. Get creative, and then submit your entry to see who is the most creative in their International Credit Union Art for a chance to win a free coffee! We will also have a large social media presence centered around International Credit Union Day.

A message from CEO Rose Gunter:

Over the past 18 months, our Board and Senior Management have developed a relationship with City & Police FCU that has evolved into a partnership that will unite our financially strong and healthy institutions. Together, we will continue to be dedicated to serving those on the frontline, including healthcare, law enforcement, and City of Jacksonville workers as well as our existing select employee groups.  This strategic merger, which is pending the approval of its members and our regulators, will increase our resources to add value to both memberships, make a greater impact in the communities we serve, and provide our employees with more growth opportunities.

The merger will expand our branch network and increase potential opportunities for expansion and innovation.  Our combined credit union will operate under the Alive brand and our current State charter.  We will add a tagline to our logo that identifies police, city, and healthcare.  We will retain the same friendly faces and provide the service our members are accustomed to at both of our credit unions, which have very similar cultures.

Once the merger is completed, as early as December 31st, Aaron Logue, City & Police FCU’s CEO will become Alive’s CEO.  Those of you who know Aaron can attest to his strong character work ethic, and commitment to the credit union movement.  He will be a great leader for our credit union.  Aaron worked with us from 2010 – 2012 as AVP of Compliance & Risk Management before becoming the CEO of CPFCU, and before that, he was our auditor with Smoak Davis and Nixon. He served on the NEFL Chapter board for nine years, including as the President for several years.  He currently serves on LSCU’s Florida Advocacy Committee.  Our senior officers will remain the same:  Cindy Smith, SVP Operations, Ricky Joshi, CFO, Shanaz Abadi, VP Member Experience, and Jocelyn Jones, VP Lending.  Personally, I have thoroughly enjoyed working in two credit unions for over 43 years and will greatly miss the meaningful work we do, and each of you.  However, my husband and I have really been looking forward to my retirement for quite a while. 

Both credit unions plan to announce to our members next week after each of you has had time to learn additional details about this wonderful opportunity that will mutually benefit both of our credit unions. Please reach out to me with any questions or bring them to our training sessions next week.  We will have additional information and commonly asked questions that will help answer any member’s questions.

On behalf of our Board of Directors and Senior Management team, who unanimously endorse this merger, thank you in advance for supporting our efforts to grow and preserve the legacy of both credit unions. 

As the seasons change and the cool air meets the warm, storms begin to brew in the ocean and within the financial scape. Criminals are clever and know that during a time of crisis, they can try to take advantage of unsuspecting victims. As our members’ chosen financial institution, we are often the first line of defense when it comes to preventing scams. Hurricane season is upon us now so let’s brush up on best practices and common occurrences when it comes to hurricane scams.

Fraudulent emails

We are all well-versed in spotting phishing emails but often times our members are not. During a hurricane, criminals can capitalize on sending malicious links and attachments. Often, cybercriminals will send emails that convey an urgency that may seem more likely in a hurricane. You may remember that last year, there were several JEA email scams. If a member comes in to request a wire or you see suspicious activity on their online banking, ask extra questions to gently sus out if it is a genuine transaction or if they are being victimized.

Charity scams

Unfortunately, the scams do not end after the storm has passed. Every year more and more charity scams pop up. On social media it is very easy to read a sad story and feel compelled to donate to a cause. Prior to making a donation — especially a generous one— guide our members to fact check. If they are requesting a wire or check cut for a charity be sure to check out the charity’s website. You can also check the state’s charity regulator website to see if it is legit. You can find the register for your state here.

Post-Disaster Insurance Scams

There are two varieties of insurance scams. In some cases, members may receive a call from a criminal posing as an insurance agent who will ask for all of their personal information. They may even suggest that they need payment right away to start the insurance claim. This is untrue. Advise members to hang up and call the insurance company directly. Policyholders with the National Flood Insurance program can call 1-800-638-6620.

Another post-disaster scam that can occur in the midst of an emergency is when a member comes upon a fraudulent insurance check. Remember to follow the hold policy and make your supervisor aware if you notice anything suspicious about any monetary instrument.

The most important thing to remember is that members can feel stressed, worried, overwhelmed, and upset before and after a natural disaster. Operating with empathy and understanding, as we always do at Alive, provides our members a special safe haven of security. Stop and think about any of our members requests and guide them towards safe financial practices during this season— just as we do every season.

For more information on hurricane scams, visit the Cybersecurity and Infrastructure Security Agencies website.

This year in addition to our typical member engagement and branch celebrations, we had our first ever Credit Union Spirit Award.

What is the Credit Union Spirit?

Credit union spirit refers to the fundamental principles and values that guide the operation and culture of credit unions. At its core, credit union spirit embodies the essence of cooperative ownership, member-centric service, and community support. Unlike traditional banks, credit unions are not-for-profit financial institutions owned and governed by their members, who are also customers. This unique structure fosters a strong sense of community, collaboration, and shared responsibility.

The credit union spirit emphasizes the importance of putting members' needs first, offering competitive and transparent financial services, and promoting financial literacy and empowerment. Credit unions are committed to building lasting relationships with their members, often tailoring their products and services to meet specific needs and circumstances.

Furthermore, credit union spirit extends beyond individual members to the communities they serve. Credit unions are active in supporting local initiatives, charitable causes, and community development, with a focus on improving the financial well-being of their members and neighbors.

The 2023 Credit Union Spirit awardees

This year two individuals were nominated repeatedly with a common explanation of deep connection to the Credit Union Movement. Congratulations to both of Alive’s Credit union Spirit Award winners!

Jessica Parmenter

Jess has worked at Alive Credit Union as a Teller, Member Service Representative, and now as the Touchton Branch Supervisor. Over the years Jess has been active in Healthy Habits and CARES. She is always a mentor to teammates around her. One except from a nomination stated “Jess works hard for both our internal and external members. Even when it is a bit overwhelming, she cares for their concerns with a smile.” Another nomination read “every time I have ever had to call Jess, she is always very helpful and pleasant. She always helps me and calls me back if I don't reach her. I know she is very busy but always happy to help you.” Jess, today your peers solute you as embodying the Credit Union philosophy of People Helping People.

Shanaz Abadi

Shanaz has worked at Alive Credit Union for many years. Shanaz has worn many hats and mentored most Alive team members during her tenure. Shanaz shines at supporting both external and internal members, providing support of each individuals career path or member’s financial wellbeing. One nomination read “Shanaz's compassion and empathy for our members and employees is truly remarkable.” While another team member shared, “She is very good with the members, and they love her. They miss her when she is not here or anytime that they don't see her.” Shanaz, we are all grateful for the impact you make on us as a Credit Union and proudly recognize you as a representation of the Credit Union Movement.

Alive CFO and Northeast LSCU Chapter Treasurer, Ricky Joshi is working among the cooperatives to reinvigorate the League of Southeastern Credit Union & Affiliates Northeast Chapter’s Young Professionals Group. The LSCU is the regional trade association for credit unions in Alabama, Florida, and Georgia. They provide resources, tools, and support that enable credit unions to grow and succeed.

The Young Professionals group or “YP” is made up of credit union professionals, 40 years of age and younger, working to positively impact the credit union movement. The goals of the program are “improved industry awareness, increased knowledge and professional development, and a collaborative spirit among young credit union professionals”, according to the LSCU. These individuals are the future leaders of the credit union movement.

Ricky joined YP as soon as the program was initiated several years ago. He has since aged out of being an active participant but is taking on an active role in encouraging the YP program’s growth. Ricky shared ”The value added that comes from the YP program is the people you surround yourself with. You get to bounce back ideas among each other and see what they are doing to further themselves in their career.” One of the 9 Cooperative Principles of the Credit Union Movement is “Cooperation among cooperatives”, which is why groups such as YP are so special. Other industries that may be less cooperative do not have the safe space to bounce ideas off of peers. It’s not all about tight ties and stiff shoes though, in fact, when asking Ricky about his YP experience he shared one of his greatest joys was simply “attending social hours and connecting with people”.

Each year, YP hosts an event called “YP Think Tank”. Jessica Parmenter, supervisor of the Touchton Branch and Hali Hagist, community development representative, both had the opportunity to attend in 2023. At the event each speaker addressed a topic of professional development from self marketing, to being a team leader, to understanding what the LSCU does. Other YP Chapter Board Members sat on a panel and shared the value they have received from being active in their groups. Jess shared that she “enjoyed being around other like-minded young professionals. It was fun hearing their experiences and stories within the credit union space. Seeing how excited and encouraging everyone was really motivated me to want to become more involved in the credit union industry.”

If you are interested in joining the reinvigorated and exciting YP movement or are passionate about credit unions and want to deepen your impact, join the YP chapter for free by using the button below.

For many years now, Alive has offered Free Financial Wellness Coaching to our members. Recently, this program has expanded with a new self service scheduling system rolling out so our members can request meetings with the coaches at their convenience. This new feature is located on the alivecu.coop website.

Alive’s Coaches are credit union certified financial counselors who offer motivational guidance and support to members in achieving their financial goals. Goals vary from improving credit, to paying down debt, preparing to purchase a home, or even transitioning into retirement. Every step of the way, the coach is there to assist the member in choosing the right “plays” and celebrating the victories. Tellers, member service representatives, contact center representatives, and loan officers are encouraged to recommend financial wellness coaching to the members who may benefit this service.

The Coaching Team is currently growing with several new coaches starting their own vigorous “training” through the CUNA eSchool. It’s not too late to join this year’s trainees! Webinars are available to view in your down time and all training resources as well as the national accreditation exam are free for employees courtesy of Alive. In addition to making a big difference in your local community, being a Financial Coach is a great resume builder and showcases your dedication to the credit union movement as well as your depth of knowledge.

If you are interested in becoming an Alive Financial Wellness Coach, send a quick email to get started!

Did you know?

• Close to 4.5% of U.S. households are “unbanked”.

• Almost 14.1% of U.S. households are underbanked, meaning they still use some fringe financial services.

• Nearly 29.2% of unbanked households earn less than $30,000 per year.

• Nationally, 36% of Black households and 33.4% of Hispanic households are unbanked or underbanked , compared to less than 12% of White households.

Solution:

One key challenge facing unbanked and underbanked individuals has been a lack of safe and appropriate accounts offered by mainstream financial institutions, particularly those without overdraft.

The CFE Fund has worked closely with the Bank On National Advisory Board and other key stakeholders to develop the Bank On National Account Standards. Inspired by the Federal Deposit Insurance Corporation’s Model Safe Accounts Template, these standards provide local programs with a benchmark for account partnerships with financial institutions, including their local partners. Financial institutions with accounts that meet these Standards can apply free for national certification.

Bankon at alive

As of February of 2023, Alive’s Fresh Start Checking is officially accredited as a Bank On Certified account by the Cities for Financial Empowerment Fund. Fresh Start accounts give an opportunity to the member to turn over a new leaf and start rebuilding a positive banking history. Members with poor credit or banking history can start in the Fresh Start Checking account and be converted into a Free Checking after a year of positive history upon review by management. They can then begin rebuilding credit with our Credit Builder Loan. As with all members, from the time they open their Fresh Start account, they are eligible to access our Free Financial Coaching Team who can guide them through the rebuilding process. This is another example of the products and services Alive has created to cater to the underserved and underbanked members of our community. #Bankingforall

Read more about our various credit and checking solutions in the Alive Credit Union Product Knowledge Manual.

Please see our collective goals progress so far in 2020.

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Welcome Victoria Garces to the Alive team!

We’re happy you’re here and can’t wait to get to know you. We’re a small but mighty team so please know that you can count on any of us to help you succeed in your new role as a Teller at our Main Office. Good luck!

“I’ve heard of credit unions, I just never really knew what they were. I know it’s something to do with finance?”

“I know we have a lot. I don’t know what they’re doing, like what they’re used for. But I think it’s more or less to help loans and stuff?… I don’t know.”

“I don’t know, like groups of people that help bring up your credit?”

Check it out here!

Please see our collective progress so far in 2020!

Click Here to View

Jeans are allowed every Friday, with an Alive CU shirt.