NEWARK – Park National Corporation on Monday reported lower revenue for the quarter and year, compared to the same periods in 2018. Park National Bank, meanwhile, reported increases in revenue.

Park’s net income for the second quarter was $ 22.2 million, down 21.5% from $ 28.2 million in the second quarter of 2018. Net income per diluted common share of the second quarter was $ 1.33, compared to $ 1.83 in the second quarter of 2018.

Park’s board of directors declared a quarterly cash dividend of $ 1.01 per common share, payable September 10, to common shareholders of record on August 16.

Park’s net income for the first half of the year was $ 47.6 million, a decrease of 19.8% from $ 59.4 million for the first half of 2018. Profit net per diluted common share was $ 2.94 for the first half of 2018, compared to $ 3.85 for the first half of 2018.

Park CEO David Trautman said: “Comparing the first half of 2019 to the first half of 2018 is a challenge. The first half of 2018 included unforeseen one-time revenues and the second quarter of 2019 included expenses related to the merger.

“Our banking organization continues to perform well, including increases in commercial and installment loans in the first half of this year.”

Park’s community bank subsidiary, Park National Bank, reported second quarter net income of $ 29.4 million, an increase of 2.1% from $ 28.8 million in the second quarter of 2018 .

The bank reported net profit of $ 56.1 million for the first half of 2018, compared to $ 55.5 million for the first half of 2018.

In the first half of the year, the bank increased its installment loans by 10.1% on an annualized basis and its commercial loans by 3.5% on an annualized basis, excluding loans from the Carolina Alliance Bank Division.

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Today, the Consumer Financial Protection Bureau (CFPB) sued MoneyLion Technologies (NYSE:ML), an online lender, and 38 of its affiliates for charging illegal and excessive fees to service members and their dependents. The CFPB alleges that MoneyLion violated the Military Loans Act by charging more than the legally permitted 36% cap on loans to military members and their dependents, through a combination of reported interest rates and fees. monthly membership. The CFPB also alleges that MoneyLion forced customers to join a membership program to access certain “low APR” loans and then did not allow them to cancel their membership until their loans were repaid. This is the CFPB’s fourth enforcement action related to the Military Loans Act in the past two years.

“MoneyLion has targeted military families by illegally collecting fees and making it difficult to cancel monthly subscriptions,” CFPB Director Rohit Chopra said. “Companies are breaking the law when they charge monthly membership fees for loans and then create barriers to canceling those memberships.”

MoneyLion, based in New York, is a fintech company that offers online installment loans and other products. MoneyLion requires customers to join a MoneyLion membership program and pay a monthly membership fee to access what it markets as its “low APR” installment loan product.

The CFPB alleges that MoneyLion’s practices violated the Consumer Financial Protection Act and the Military Loans Act. The Military Loans Act protects active-duty military members and their dependents, including limiting the annual rate on credit extended to military members and their dependents to 36 percent. Specifically, MoneyLion allegedly harmed consumers by:

Overcharging and deceiving military and military dependents: MoneyLion imposed membership fees on covered borrowers that, combined with interest charges on loans, exceeded the law’s 36% cap on military loans. MoneyLion deceived these borrowers by stating that they owed loan payments and fees that they did not actually owe because the loans were void under the Military Loans Act.
Refusing to allow customers to leave its membership programs and stop paying monthly fees: To access what MoneyLion markets as its “low APR” installment loan, the company asked consumers to join its programs membership and pay a monthly membership fee, which ranged from $19.99 to $29. MoneyLion has falsely tricked many consumers into believing that they can cancel their membership at any time. In fact, MoneyLion refused customer requests to cancel memberships and stop paying membership fees if they had outstanding loan balances. In some cases, MoneyLion refused to cancel memberships after loan repayment if consumers had outstanding membership fees.

Enforcement measures

Under the Consumer Financial Protection Act, the CFPB has the power to take action against companies that violate consumer financial protection laws, including engaging in unfair, deceptive or abusive acts or practices. The CFPB also has the authority to enforce Military Loans Act protections for service members and their dependents. The CFPB is calling for monetary relief for consumers, restitution of unfair winnings, an end to MoneyLion’s illegal practices, and a civil monetary penalty.

The complaint is not a final finding or determination that the defendants violated the law.

Virginia Retirement Systems ET AL reduced its position in Customers Bancorp, Inc. (NYSE: CUBI – Get Rating) by 8.2% during the 1st quarter, reports Holdings Channel.com. The fund held 22,300 shares of the bank after selling 2,000 shares during the quarter. Virginia Retirement Systems ET AL’s holdings in Customers Bancorp were worth $1,163,000 at the end of last quarter.

A number of other institutional investors have also been buying and selling stocks recently. Maryland State Retirement & Pension System increased its holdings in Customers Bancorp 1.4% in the fourth quarter. Maryland State Retirement & Pension System now owns 11,888 shares of the bank valued at $777,000 after acquiring 161 additional shares in the last quarter. Captrust Financial Advisors increased its holdings in Customers Bancorp by 9.0% in the third quarter. Captrust Financial Advisors now owns 2,801 shares of the bank valued at $120,000 after acquiring 231 additional shares in the last quarter. Lazard Asset Management LLC increased its holdings in Customers Bancorp by 70.5% in the fourth quarter. Lazard Asset Management LLC now owns 687 shares of the bank valued at $44,000 after acquiring 284 additional shares in the last quarter. Exchange Traded Concepts LLC increased its holdings in Customers Bancorp by 1.6% in the fourth quarter. Exchange Traded Concepts LLC now owns 18,133 shares of the bank valued at $1,185,000 after acquiring 292 additional shares in the last quarter. Finally, Two Sigma Advisers LP increased its stake in Customers Bancorp by 3.7% in the third quarter. Two Sigma Advisers LP now owns 8,400 shares of the bank valued at $361,000 after acquiring 300 more shares in the last quarter. Institutional investors and hedge funds own 83.48% of the company’s shares.

NYSE CUBI opened at $34.50 on Thursday. The company has a market capitalization of $1.14 billion, a P/E ratio of 3.44 and a beta of 1.61. The company has a debt ratio of 0.15, a current ratio of 0.81 and a quick ratio of 0.81. The stock’s 50-day moving average is $38.30 and its 200-day moving average is $51.23. Bancorp, Inc. Customers has a one-year minimum of $32.19 and a one-year maximum of $76.13.

Customers Bancorp (NYSE:CUBI – Get Rating) last released its quarterly results on Wednesday, April 27. The bank reported EPS of $2.19 for the quarter, beating analyst consensus estimates of $1.66 by $0.53. The company posted revenue of $185.90 million for the quarter, compared to analyst estimates of $170.48 million. Customers Bancorp had a return on equity of 30.79% and a net margin of 40.14%. Stock analysts expect Customers Bancorp, Inc. to post EPS of 7.3 for the current year.

CUBI has been the subject of several analyst reports. B. Riley reduced his target price on Customers Bancorp from $100.00 to $90.00 in a Tuesday, April 12 research note. Maxim Group reissued a “buy” rating and published a target price of $85.00 on Customers Bancorp stock in a research note on Friday, April 29. Stephens launched coverage on Customers Bancorp in a research note on Monday, March 28. They issued an “equal weight” rating and a target price of $62.50 on the stock. StockNews.com launched coverage on Customers Bancorp in a research note on Thursday, March 31. They issued a “holding” rating on the stock. Finally, Keefe, Bruyette & Woods upgraded Customers Bancorp from a “market performance” rating to an “outperform” rating and increased its target price for the business from $72.00 to $80.00 in a research note from Monday, March 28. Four investment analysts gave the stock a hold rating and five gave the company a buy rating. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $72.36.

Separately, Chief Financial Officer Carla A. Leibold purchased 1,000 shares of the company in a transaction that took place on Friday, May 6. The shares were acquired at an average price of $42.10 per share, with a total value of $42,100.00. Following the transaction, the CFO now owns 68,348 shares of the company, valued at $2,877,450.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, accessible via this hyperlink. Additionally, CEO Samvir S. Sidhu purchased 2,965 shares of the company in a transaction that took place on Friday, May 6. The shares were purchased at an average cost of $42.10 per share, for a total transaction of $124,826.50. Following the transaction, the CEO now owns 80,637 shares of the company, valued at approximately $3,394,817.70. Disclosure of this purchase can be found here. In the past ninety days, insiders have purchased 4,465 shares of the company worth $186,912. 6.75% of the shares are currently held by insiders.

Bancorp Clients Profile (Get a rating)

Customers Bancorp, Inc operates as a banking holding company for Customers Bank which provides financial products and services to individuals and small and medium businesses. The Company offers deposit products, including checking, savings, MMDA and other deposit accounts. It offers lending products, including commercial warehouse mortgages, multifamily and commercial real estate loans, business banking, small business loans, equipment financing, residential mortgages and installment loans.

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Want to see which other hedge funds hold CUBI? Visit HoldingsChannel.com to get the latest 13F filings and insider trading for Bancorp, Inc. (NYSE: CUBI – Get Rating) clients.

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Southern Crown Corporation found using ticker (SSB) now have 7 analysts covering the stock. Analyst consensus indicates a rating of “Hold”. The range between the high target price and the low target price is between 93 and 70.5 by calculating the average target price that we see 84.93. Now, with the previous closing price of 78.28, that would imply a potential rise of 8.5%. The 50-day moving average is 79.6 while the 200-day moving average is 79.13. The company has a market capitalization of $ 5,533 million. Visit the company’s website at: https://www.southstatebank.com

The South State Corporation is the banking holding company of the South State Bank which provides a range of banking services and products. The company accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposit and other term deposits. It also offers commercial real estate loans, residential real estate loans, commercial and industrial loans, as well as consumer loans, including auto, boat and personal installment loans. In addition, the company provides cash management services, merchant services, debit card products, automated clearinghouse services, safe deposit box services, remote deposit capture services and other treasury services. As of December 31, 2020, it was serving clients at 285 branches in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. The company was previously known as First Financial Holdings and changed its name to South State Corporation in July 2013. South State Corporation was founded in 1933 and is headquartered in Winter Haven, Florida.

If you’ve been shopping recently, you’ve probably been offered the option to “buy now, pay later” (BNPL) – in other words, split your transaction into installment payments. Getting extra time to pay might seem like a good deal if your budget is tight, but going this payment route may not be risk free for your credit.

Installment payment services have really taken off. And credit card issuers are starting to offer their own versions. But not all BNPL programs work the same. Before signing up, make sure you don’t put your credit score at risk.

The key questions to be answered before connecting to BNPL are as follows:

• Will your payment activity be reported to the credit bureaus?
• Does the service make a hardware or software request when you apply?
• What happens with late or missed payments?

Are BNPL’s services the responsibility of the credit bureaus?

Because BNPL is an emerging field, there aren’t many definitive answers as to whether or not BNPL transactions are reported to credit bureaus, says Ethan Dornhelm, vice president of scores and predictive analytics for FICO.

“The consumer can ask or do a little research online to determine if that particular issuer is reporting loans to the credit bureau right now,” says Dornhelm. “This will at least give them an indication of the immediate likelihood that their credit score and records could be affected by getting the loan.”

The problem? “Nobody reads the fine print,” says Howard Dvorkin, CPA and president of Debt.com. “Either you check on a terminal, or your computer or your phone, and the screen is small, and you’re not going to sit there and read that loan language.”

No one reads the fine print. Either you pay at a terminal, or on your computer or phone, and the screen is small.

– Howard DvorkinPresident, Debt.com

With 60% of consumers reporting having used a BNPL service, and more of these services appearing all the time, it’s important to understand how they work. Here’s a look at how choosing BNPL could impact your credit.

Do BNPL services use a soft or hard request?

Many people use BNPL’s services as an alternative to credit cards, assuming no risk for their credit. Mary Rosado, a resident of Staten Island, NY, says she uses BNPL Afterpay and Klarna services all the time. “They don’t ask for your social security number, so I don’t see how they can pull your credit report,” Rosado says. “I use them, to be honest, because I have bad credit and I can’t get credit cards. “

Rosado is right. The services she uses perform a smooth credit draw that does not affect your credit score. “When a credit check is performed, we verify a client’s identity using the details they provide and we review information on their credit report to understand their financial behavior and assess their creditworthiness,” explains a spokesperson for Klarna.

But consumers should be aware that some BNPL services use strict credit checking. For example, Affirm offers a 0% APR option with four biweekly payments and no credit checks, but its long-term installment loans rely on careful investigation. PayPal’s “Pay in 4” only uses soft credit, but PayPal Credit does a full credit check.

Overview of bank rates

One serious request is not going to lower your score, but consumers should be aware that some BNPL services use a serious credit check.

It is important to understand these distinctions when you are presented with different payment options at checkout, as new credit requests account for 10% of the FICO score calculation.

“The analysis of millions of credit reports that we use to establish our FICO scores consistently shows that those with a higher number of recently requested and recently acquired accounts are a slightly high retention risk across the board,” says Dornhelm. .

Of course, one serious investigation is not going to lower your score. “We usually say that a survey is unlikely to impact the score by more than five points,” says Dornhelm. “But for a rare segment of the population, it could have a significant impact.”

If you’re applying for a mortgage or refinance, for example, just a few points could put you in a different level of interest rate qualification.

The biggest problem is whether you take out loans that regularly use in-depth surveys. “If they do a report and you go out and get five of these loans, it looks like you are in desperate need of credit,” says Dvorkin. “You have to be very careful.”

Do BNPL services report payment activity?

The next potential credit impact occurs if the BNPL service reports account activity to one of the credit bureaus. Again, some do and some don’t, and this can vary depending on the loan product. For example, Affirm does not report activity on its four bi-weekly payment offer, but longer-term loans are reported as installment loans.

Then there are some BNPL products, like PayPal Credit, which can offer revolving lines of credit rather than fixed loan payments, explains Dornhelm. With revolving accounts, the amount of available credit you use (called credit usage) also has a significant impact on your credit score, which is 30%.

This is why it makes sense to know if and how the BNPL service you are considering is paying off your business. Since payment history is the most important factor in calculating FICO, accounting for 35% of your score, consumers with thin credit files might even benefit from using these products as a way to demonstrate a positive payment behavior, explains Dornhelm.

What happens if you miss a payment?

When it comes to your credit, missed payments can be very damaging, but remember: not all BNPL programs report your activity. So if you miss a few payments but catch up, your score might come out unscathed.

“I was late this week, so they just sent me a notice saying ‘okay we’ll try again in a few days’,” Rosado said. “They don’t have my social security number so I don’t know how that can go against my credit.”

Because her services don’t report, she’s right to be in the clear. But let’s say someone ends up defaulting on their remaining balance. Once a debt is sent to collections, the credit bureaus will be notified. Klarna does this after 82 to 90 days of delinquency, while Affirm waits 120 days.

Of course, if BNPL makes a report, once you miss a billing cycle it will likely show up as a negative item on your credit report and trigger a drop in score.

“When it comes to missing payments, the main goal of the score is when the payment was missed and the severity of the payment default,” says Dornhelm. “And so to that end, missing payments are likely to have a significant impact on a consumer’s score.”

Verdict on BNPL’s credit impact

BNPL’s offers could be useful tools, especially for consumers who do not have access to other types of credit. When used with care, and especially if there is no investigation or report, they can offer some leeway for credit inconvenience-free repayment.

Overview of bank rates

When used with care, especially if there is no investigation or report, BNPL plans can provide leeway for inconvenience-free credit repayment.

“For me, BNPL is more manageable as long as I don’t get carried away,” says Rosado, who typically tries to keep spending less than $ 400 so his payments don’t go over $ 100 at a time.

Choosing BNPL options that perform credit checks and report payment activity is a bit riskier on credit terms, but as long as you use them sparingly and pay on time, they can work in your favor.

Credit issues aside, it’s important not to be tempted by BNPL’s offers. “If you can’t afford it, don’t buy it,” Dvorkin says. “Consumers are very optimistic and sometimes get into trouble. But if you are using a BNPL offer, he recommends that you automate your payments, so you don’t trip up and forget to pay.

As with any credit product, your primary goal should be to keep debt low and pay that debt on time, adds Dornhelm: “These behaviors, whether it’s on a BNPL loan, a credit card or a loan. staff, are likely to help the consumer’s FICO score in the long run.

Dear Credible Money Coach,

I owe the IRS $16,000, interest added daily. Should I take out a loan with interest? — Granny

Hello Mom and thank you for your question. Many Americans feel stressed when tax season approaches. But if you have tax debt, that anxiety can last all year.

Your question highlights the biggest problem with tax debt – interest. When you owe taxes, you may also face penalties, but interest is what keeps your debt growing. And interest will continue to accrue until you repay the debt. Tax debt can be so heavy that the IRS actually recommends that taxpayers either liquidate assets to pay their debt or consider getting a loan, as both options may be cheaper in the long run than paying penalties and interest from the IRS.

Before taking out a personal loan for any reason, it is a good idea to compare the rates of several lenders. Credible, it’s easy to view your prequalified personal loan rates.

How Tax Debt Works

From source deductions to estimated tax payments, the IRS expects you to pay at least 90% of the tax you owe in the months leading up to the filing deadline. and payment of taxes, and any remaining balance before the deadline itself.

If you don’t reach that 90%, you could face an underpayment penalty on top of your remaining balance, although there are some exceptions. And, if you make the mistake of not filing a return on time, in addition to not paying your tax liability in full, you may also face a failure to file penalty.

How tax debt can increase

Any tax balance that you do not pay in full on tax day is subject to 3% interest which, as you noted in your question, is compounded daily. Interest applies to the total outstanding balance, including the amount of tax owing, penalties and unpaid interest.

Although 3% may not seem like much, daily compounding can cause your debt to balloon. For example, a tax bill (capital, penalties and interest) of $5,000 can reach $5,152 at the end of the first 12 months if it is not paid.

Options for Repaying Tax Debt

To repay a tax debt, you have several options:

Cash payment

If you have savings to cover that $16,000 balance and tapping into those funds won’t leave you financially strapped, paying off your balance in full immediately is the way to go. The disadvantage of this option is that you will take a significant part of your savings.

IRS Payment Plan

IRS payment plans are an option if you want to break your tax debt down into manageable payments. The IRS allows taxpayers to make short-term and long-term payment plans, and requesting one is quite easy. You can call 800-829-1040 or request a payment plan online.

But there are downsides to IRS payment plans, including interest and fees for setting up or changing your plan. If you opt for a long-term plan, paying off your debt in full could take a long time and interest will continue to accrue until you pay off your balance.

Credit

While using the credit for pay your tax bill is literally to swap one type of debt for another, in some situations this can make sense.

If you have a credit card with a large available balance, using it to pay your tax bill might be the quickest option. But that’s rarely the best, because credit card interest rates can be high. At the end of 2021, the average rate on credit cards with assessed interest was 17.13%, according to Federal Reserve data.

Depending on your credit score, your rate could be much higher than average. Also, since credit cards are revolving credits, your interest rate and costs may increase while you are pay on debtwith no definite end date in sight.

On the other hand, personal loan interest rates tend to be lower than credit card rates, so if you need to use credit to pay your tax debt, a personal loan may be a cheaper option. At the end of 2021, the average 24-month personal loan rate was 9.39%, according to the Federal Reserve. Since personal loans are installment loans, you will have a specific repayment date and know before you sign on the dotted line exactly how much interest you will pay over the life of the loan.

But personal loans can have drawbacks. Some lenders charge origination or application fees for processing the loan, as well as prepayment penalties if you repay the loan early, so it’s important to fully understand the terms of any loan you’re considering.

Is the personal loan the best option to repay a tax debt?

Grandma, if your credit is good to excellent and you meet the income requirements, you may be eligible for a $16,000 personal loan at a favorable interest rate and terms. A personal loan could allow you to pay off your tax debt and avoid the snowballing interest charges that can come with unpaid tax debt, credit cards, or an IRS installment plan.

Finally, don’t underestimate the mental health benefits you could get from paying off your tax debt. Some forms of debt can be more stressful than others, and tax debt — with its potential to lead to wage garnishment, real estate liens, and seized assets — is definitely a stressful type of debt. You can have peace of mind knowing that you owe a personal lender, rather than Uncle Sam, and that your interest charges won’t keep piling up as you pay off the debt.

You can check your prequalified personal loan rates in minutes, without affecting your credit, when you use Credible.

Ready to know more? Check out these articles…

Need Credible® advice for a money-related question? Email our credible financial coaches at moneyexpert@credible.com. A Money Coach could answer your question in a future column.

This article is intended for general information and entertainment purposes. Use of this site does not create a professional-client relationship. Any information found on or derived from this website should not replace and should not be taken as legal, tax, real estate, financial, risk management or other professional advice. If you require such advice, please consult a licensed or competent professional before taking any action.

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About the Author: Dan Roccato is a clinical professor of finance at the University of San Diego School of Business, personal finance expert Credible Money Coach, published author and entrepreneur. He has held senior positions at Merrill Lynch and Morgan Stanley. He is a recognized expert in personal finance, global securities services and corporate stock options. You can find it on LinkedIn.

Today, BayCom Corp Inc (NASDAQ: BCML) stock was up $ 0.32, an increase of 1.72%. BayCom opened at $ 18.45 before trading between $ 18.92 and $ 18.45 throughout Friday’s session. The activity saw BayCom’s market cap rise to $ 201,998,798 across 11,914 stocks, above their 30-day average of 11,367.

About BayCom Corp

BayCom Corp operates as a banking holding company for United Business Bank which provides various financial services to businesses, business owners and individuals. The company offers current, savings, money market and term accounts. It also offers commercial and multi-family real estate loans, including real estate loans to homeowners and investors; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit and overdraft protection.

Visit the BayCom Corp Profile for more information.

The daily solution

Here is a selection of trends from our newsletter, The Daily Fix, which captured the attention of readers. Click here to subscribe and get The Daily Fix delivered straight to your inbox.

California proposes oil and gas drilling buffer around communities

California Governor Gavin Newsom has proposed a statewide ban on oil and gas drilling within 3,200 feet of homes, schools and hospitals to protect public health and further his goal of combating against climate change.

The draft rules, released last week by the state’s petroleum regulator, California’s Geological Energy Management Division (CalGEM), aim to create what would be the largest buffer zone in the country. The existing wells in these setbacks would not be prohibited, but subject to more stringent regulations.

[More]

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Salad Chain Sweetgreen files an initial public offering

Quick and casual salad chain Sweetgreen filed an initial public offering with the United States Securities and Exchange Commission on Monday.

In its Form S-1, the Los Angeles-based company said it planned to sell shares under the ticker symbol “SG”, but did not disclose the proposed size, valuation or timing.

[More]

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Durable shoe maker Allbirds seeks IPO value north of $ 2 billion

Sustainable footwear brand Allbirds Inc is forecasting a valuation of over $ 2 billion when it goes public in the United States.

In its amended Form S-1 filed on Monday, the company said it was offering around 19.23 million shares at a price of between $ 12 and $ 14 apiece. At the top of that range, Allbirds would achieve gross proceeds of over $ 269 million.

[More]

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About the Nasdaq Stock Market

The Nasdaq Stock Market is a global leader in trading data and services, as well as the listing of stocks and options. The Nasdaq is the world’s largest stock exchange for options volume and is home to the five largest US companies – Apple, Microsoft, Amazon, Alphabet and Facebook.

To get more information about BayCom Corp and keep up with the latest company updates, you can visit the company profile page here: BayCom Corp’s Profile. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView based on 15 minute lag prices. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

DISCLOSURE:
The views and opinions expressed in this article are those of the authors and do not represent the views of equities.com. Readers should not take the author’s statements as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please visit: http://www.equities.com/disclaimer

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UFCU SPONSORED CONTENT – Credit is an important tool you can use to manage and improve your financial health. Use it wisely because it has a direct impact on your credit score. We explain why your credit score matters and how you can take control.

So what is a credit score?

Your credit score is a number that tells lenders how likely you are to pay them off. The most common score used by lenders is a FICO® score, which ranges from 300 to 850. The higher your score, the less risky it is to lend you money. Typically, a high score means you will have better loan terms and lower interest rates.

What do the numbers mean?

The range of FICO® scores translates into these values:

• Less than 580 = poor
• 580–669 = Fair
• 670–739 = Good
• 740–799 = Very good
• 800–850 = Exceptional

What goes into a credit score?

The good news is that you are in control of how your credit is rated. Five ingredients make up the score, some counting more than others:

• Payment History, also known as Pay On Time – 35% – This is the most important factor!
• Amounts Due – 30% – This is how much of your available credit is used.
• Length of credit history – 15% – This includes the age of your oldest account and how long you’ve used certain accounts.
• New Credit – 10% – Avoid opening multiple new accounts in a short period of time.
• Loan Breakdown – 10% – It’s good to have a variety of types of debt, like credit cards, mortgages, and installment loans like auto, student, and personal loans.

How do you improve a credit score?

Always pay your bills on time, every time. Every time you miss a payment, even if it’s just a day, your credit score goes down. If you have a hard time with this, try to schedule your payments so that they are automatically deducted from your checking account each month.

The second most important thing you can do to improve your score is to keep your balances low. It is recommended that you pay off your credit card balance in full each month to avoid having to pay interest. If that’s not possible, keep your outstanding balance below 30% of your total limit. For example, a credit card with a limit of $ 5,000 should have less than $ 1,500 to pay. A balance greater than 30% will lower your score.

A good credit score takes time to build and improve, so be patient. Remember, you have the power to control your credit score and ultimately your financial health.

If you’re looking for additional financial tips and tools to better plan, spend, save, and borrow, check out PlanU by the UFCU. You’ll find options ranging from chatting with a financial health expert to creating a personalized resource center to meet your needs.

Evolve or die, they say.

This is an extreme claim, a bit simplistic in some ways, but the principle holds true in financial services, especially banking.

For, after all, most basic banking services – the mainstays that have been around for decades, if not centuries – are targeted by digitally savvy newbies who promise all kinds of benefits, including speed, convenience, and depending on the size. where you look, lower fees and higher rates.

Just a few examples: Goldman is going into consumer banking, LendingClub has bought a (digital) bank, and many FinTechs offer elements of the banking experience, while Big Tech of course offers small business lending and other products. . .

The moat is narrowing, in other words, but it goes both ways. For the same technological advancements and access to data that power these younger, small businesses, can give traditional financial institutions (FIs) the power to compete in new markets, with new products and services that capture the mindshare and the consumers’ share of wallet.

We are of course talking about open banking, which allows, with data authorized by consumers, to design these offers on the fly, putting new options in front of the end user in context, at the right time, for the right price.

All of this points to what one might compare to existential change for the banks themselves. In a report last year, “What is a bank? We noted that 36.8% of consumers qualify banks as institutions that store money securely, while 34.9% characterize them as institutions for savings and deposit remuneration, and 27, 1% characterize them as institutions that grant loans and make investments.

Read here: The many responses to “What is a bank?” “

Pretty solid definitions.

But by joining these silos, banks miss out on other sources of income that are not necessarily linked to these well-defined activities. By exploiting new levels of connectivity, banks can carve out new lines of business that are not connected to traditional sectors … but can intersect with them.

Case in point: buy now, pay later, commonly known as BNPL.

Affirms and Afterpays of the world, among others, have created a leading momentum by offering a loan option that is not tied to traditional lines of credit (as they would be in a bank) or cards. The conventional wisdom is that these installment loans would take over at least some of the bank card lines. Part of the problem is the infrastructure needed to put this phased funding in place.

But now comes the news that Mastercard is moving, decisively into the BNPL space, announcing on Tuesday (September 28) that it is giving the necessary connectivity to banks (and others) to bring their own BNPL plans to users – through 78 million traders. As detailed in this space, the first deployments will be in the United States, Australia and the United Kingdom and will see the BNPL functionality integrated directly into the payment network on multiple rails. Studies have shown that sales can increase by up to 45% while leading to a 35% drop in shopping cart abandonment.

Read: Mastercard Payments Bring New Instant, Turnkey Network of Lenders and BNPL to 78 Million Merchants

Tackle the threat from the top line

For the banks, BNPL may have represented a major threat from BNPL’s “pureplays”. But the fact that stocks like Affirm are down, at the time of writing, by several percentage points (5% drop to open Tuesday for Affirm, similar declines for others) shows that observers are aware that the rules of the game have been leveled a little for the banks (and the pureplay moats are not as “moat-y” as some might have thought).

For banks, there is another advantage. PYMNTS research has shown that BNPL is particularly attractive to “second chance” consumers who may have lower credit than the original. But data shows that 65% of these second-chance consumers earn more than $ 50,000 a year, with 30% earning more than $ 100,000. The average second chance consumer is 44 years old and has a FICO score of 662, just 38 points below the average “good” credit score. This is promising for banks starting with BNPL offers, separate from their traditional lines of credit, with a view to “integrating” these consumers with other products and services, on a good repayment activity with BNPL loans.

Cross-pollination is good practice for premium couple and recurring income – and given the relatively young age of BNPL consumers, the lifetime value also grows. With connectivity in place thanks to Mastercard’s network effect, banks can indeed evolve.

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