GCTFCU Blog | Credit Union Killeen TX (2024)

Credit Union Terms

16. April 2019 Administrator Blog (0)

A credit union is a financial cooperative that is created, owned and operated by its members. It provides credit at competitive rates in addition to a plethora of financial services to its members.

Following is a list of some terms that are commonly used in credit unions:

  • Account Agreement: The agreement that determines membership eligibility, conditions for share accounts and other banking operations.
  • Accrued Interest: Interest that is due but has not yet been paid to an account holder of a share account. It can also be due interest that has not yet been paid to the credit union by borrower of a loan.
  • Adjustable-Rate Mortgage: A mortgage without a fixed interest rate. The rate fluctuates on the basis of market conditions such as index rate.
  • Annual Percentage Rate: Percentage indicating the cost of credit on a yearly basis.
  • Annual Percentage Yield: A percentage indicating the total amount of interest paid on a share account. The amount is based on the interest rate and frequency of compounding for the year.
  • Annuity: Life insurance contract sold by brokers, insurance companies and other institutions as retirement investment.
  • Automatic Bill Payment: An automated system for an account holder to pay recurring bills.
  • Available Credit: The remaining amount of funds in a line of credit or account that a member can borrow.
  • Closing Costs: Expenses incurred by sellers and buyers when transferring the ownership of property.
  • Collateral: Assets offered by a borrower for securing a loan or some other form of credit.
  • Drawer: A person/entity who writes a check or draft asking the drawee to pay another.
  • Drawee: The credit union or financial institution expected to pay a check or draft that is presented for payment.
  • Escrow: The act of holding money or documents by a neutral third party prior to closing the property.
  • Foreclosure: Legal process of selling property and using the proceeds for covering a mortgage debt.
  • Open-End Credit: A credit agreement allowing members to borrow against pre-approved credit line for purchasing goods and services.
  • Overdraft: When the amount in an account falls short of the amount being withdrawn from a checking account or share draft account.
  • Payee: A person or organization to whom a check, draft or note is made payable.
  • Payoff: Complete repayment of a loan.
  • Share Draft Account: Checking accounts are called share draft accounts by credit unions. They are transaction accounts.
  • Uncollected Funds: A part of a deposit balance that is due to be collected by the depository financial institution.
For more information, visitGreater Central Texas Federal Credit Unionat 3305 E. Elms Rd., Killeen, TX-76542 or call at (254) 690 – 2274.

Improving Your Credit Score

30. March 2019 Administrator Blog (0)

Good credit score helps in qualifying for loans, better deals on car insurance, getting credit cards at favorable terms and more. Many factors like payment history of loans and credit cards, amount of revolving credit used, balances in one’s bank accounts, frequency of applying for credit, types of accounts, etc. affect the credit score.

Following are some tips for improving credit scores:

  • Use Online Tools To Keep A Tab On Your Credit Score: The first step towards improving your credit score is to check your status. You may use free online tools as they can help you in checking your current score and also provide insights about the factors affecting credit score. This information will help in formulating a plan for credit score improvement.
  • Create A Plan: After studying your credit report thoroughly, formulate an action plan to make possible improvements. You should aim to keep your credit card balance and revolving credit low.
  • Set Up Payment Reminders And Automatic Payments: Avoid late payments by setting up due date alerts. Also, you can set up automatic payments as per the schedule of your pay check.
  • Maintain A Low Credit Utilization Ratio: Credit utilization ratio is calculated by adding all credit card balances and dividing the amount by the total credit limit. A low credit utilization ratio is indicative of a good credit score and implies that you are managing your credit well.
  • Avoid Unnecessary Credit Accounts: It is advisable to avoid opening new credit accounts as unnecessary credit may lead to overspending & accumulated debt. This may negatively affect your credit score. You should open new credit accounts in unavoidable circumstances only. Applying for new credit may harm your credit score as it results into multiple inquiries on your credit report.
  • Keep Unused Credit Cards Open: Closing credit cards increase credit utilization ratio which has a negative impact on your credit score.
  • Create An Emergency Fund: Build an emergency fund to ensure that you meet your debt obligations on time even during dry financial periods. You may utilize this fund, if needed instead of applying for a credit.

Improving credit score requires diligent planning and dedication over time but eventually brings about many financial benefits & provides more opportunities to achieve bigger financial goals.

Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690-2274.

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Managing Your Credit Card Wisely

21. February 2019 Administrator Blog (0)

Responsible credit card usage is important for effective financial management. It helps in building credit score, preserving savings accounts, minimizing risks and enjoying financial rewards.

To gain maximum benefits from credit card usage, following are some tips on how to manage your credit card wisely:

  • Borrow Wisely: A thumb rule is to borrow what you can pay back easily. Create a budget based on your monthly income and expenditures to have a clear picture of how much you should spend with your credit card.
  • Check The Interest Rate: While applying for a credit card do make sure that you research the market and get a card which offers lowest rate of interest. Do pay attention to the annual fee and reward system offered by the lender. You may consider getting a credit card from a credit union for a competitive rate of interest.
  • Pay Off Debts On A Monthly Basis: Restrict your interest charges from growing exponentially by paying off your balance every month. Avoid skipping a payment, as this will lead to higher expenses due to late fee and will negatively impact your credit score.
  • Maintain A Low Credit Utilization Ratio: Use less than the credit utilization ratio i.e. borrow less than what you are authorized to borrow. Experts recommend keeping this ratio under 30 percent.
  • Keep Checking Your Credit Reports: Keep a tab on your credit reports by asking for a copy from a credit reporting company annually. The report will provide you an insight into your credit history and also throw light on fraudulent accounts, incorrect information, if any and more.
  • Beware Of Hidden Fees: Ask the lender for any hidden fees such as late payment fees, processing fees, balance transfer fees, credit limit fees etc. before applying for the credit card.
  • Limit The Number Of Cards: Limiting the number of credit cards you own, makes it easier to manage them. Having more cards may translate into higher debts which can affect your credit score. Once you have decided the cards that you want to keep, hold onto them. Sticking to your credit card, keeping the account active and maintaining a good payment history can build your credit score.
  • Use Technology: It is much easier to manage accounts now as most financial institutions offer free online tools to enable clients to keep a tab on their accounts.
Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690 – 2274.

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30. January 2019 Administrator Blog (0)

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Benefits Of Direct Deposit

25. January 2019 Administrator Blog (0)

In the age of emails, online banking, e-statements and mobile applications; the direct deposit system offers a convenient & fast mode of transferring payments. Direct deposit refers to an Automated Clearing House transaction in which payments are electronically transferred into one’s checking or savings account. The payments usually include pay checks, pensions, travel reimbursements, social security payments and more.

Following is a list of benefits that direct deposit has to offer:


  • Easy To Set-Up: To activate direct deposit, inform your employer and fill out a direct deposit form. You will need your credit union account number, routing number and a voided check of the account in which you intend to receive the payment.
  • Fast And Convenient: With direct deposit, you are not required to wait in lines to deposit or cash a pay check. Your money is easily deposited to your account even when you are away on a business trip or vacation.
  • Good For The Environment: Direct deposit is environment-friendly as there is no paper involved.
  • More Secure: Direct deposit is a safe and confidential method of receiving payments. It reduces the chance of anyone sneak-peeking into your financial information as the funds are transferred discreetly into your account. Also, it eliminates the chance of your pay check being lost or stolen.
  • Digital Storage Of Financial Information: Online modes of payment like direct deposit have eliminated the need to keep a tab on your payroll history. You can easily access your financial information as it is digitally saved.
  • Facilitates Savings: Direct deposit makes you better at budgeting and saving. You can split the incoming payments between your checking, saving & retirement account. This set-up encourages savings. Also, it gives you time to pause and reflect on the expenses for a better budgeting.
  • Automatic Bill Payments: As you know when the payment will be directly deposited in your account, you can schedule automatic bill payments accordingly to avoid the hassle of remembering due dates.
  • Saves Costs And Energy: A lot of time and expenses are saved by relying on direct deposit for making payments. Preparing payrolls involves writing, signing, folding, delivering checks and expenses incurred on envelopes and checks. Sometimes checks have to be re-issued if lost or stolen. Direct deposits reduce such costs and channelize the energy of human resources towards more productive tasks.
  • Flexibility: Direct deposit is not just limited to pay checks but can also be used for expense reimbursements, unemployment benefits, receiving income tax returns, travel and cash advances, etc.
Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit and welfare of its member-owners. For more information on direct deposits, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690 – 2274.

Paying Your Bills Online

15. January 2019 Administrator Blog (0)

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