Category: Blog

Your Paycheck Went Up. So Why Doesn’t It Feel Like It?

Getting a raise should feel like a financial win. Maybe you earned a promotion. Changed jobs. Picked up additional hours. Or you’re simply making more today than you were a few years ago. But somehow, there still isn’t much left at the end of the month. Sound familiar? Part of the problem is that as income increases, spending often increases right along with it. Some of that is intentional—you can finally afford a few things you used to say no to. Some of it happens without you realizing it. And some expenses simply cost more than they used to. The result? You’re earning more without necessarily feeling like you have more. The good news is you don’t need to go back to living on your old salary or eliminate everything you enjoy. You just need to make sure you’re deciding where your additional income goes instead of letting it disappear. Here are a few ways to find your raise again. 1. Start With the Last 60 Days Before cutting anything, figure out where your money is actually going. Pull up your checking and credit card transactions from the past two months and sort your spending into a few basic categories: Needs: Housing, utilities, groceries, insurance, transportation and minimum debt payments. Wants: Restaurants, entertainment, shopping, subscriptions, hobbies and other discretionary spending. Goals: Savings, additional debt payments, retirement contributions and other money you’re intentionally setting aside for the future. Don’t worry about creating the world’s most detailed spreadsheet. You’re looking for patterns. Vicinity Credit Union members can review transactions through Online and Mobile Banking, and the free Enrich Financial Wellness platform includes an interactive budget builder that can help you track expenses and see where your money is going. Try this: Pick one evening this week and spend 20 minutes reviewing your last 60 days of spending. Highlight anything that surprises you. 2. Look for the Expenses That Quietly Grew Lifestyle creep doesn’t usually arrive as one enormous purchase. It’s more likely to look like: $12 more for a streaming service.An extra takeout order each week.A more expensive phone plan.A few additional Amazon orders.Upgrading something because “it’s only another $20 a month.” Individually, none of those decisions may seem significant. Together, they can consume a large portion of a raise. Suppose your take-home pay increased by $300 per month, but you also started spending an additional $50 on subscriptions, $100 on restaurants and takeout, and $75 on shopping. Three relatively small changes have already claimed $225 of your $300 raise. Try this: Compare your current monthly expenses with what you were spending six months or a year ago. Identify three categories where your spending has noticeably increased. Then ask yourself: Did I intentionally choose to spend more here, or did it just happen? That’s an important distinction. 3. Do a $100 Reset You don’t necessarily need to overhaul your entire budget. Start by finding $100 a month. That might mean canceling two subscriptions you rarely use, swapping one restaurant meal each week for dinner at home, setting a monthly online-shopping limit or renegotiating a recurring bill. Then—and this is the important part—don’t leave that $100 sitting in checking. Give it another job. For example: $50 → emergency savings$25 → additional credit card payment$25 → vacation, holiday or another savings goal That’s $1,200 redirected over the course of a year without requiring a dramatic lifestyle change. 4. Decide What Deserves the Raise Here’s where we would avoid the usual financial advice about giving up everything fun. You worked for the raise. You should be able to enjoy some of it. The goal isn’t to make your lifestyle stay exactly the same every time your income increases. It’s to make the increase intentional. Let’s say your take-home pay goes up $400 a month. Instead of allowing the entire $400 to gradually become part of your everyday spending, you could decide upfront: $150 → Enjoy nowRestaurants, activities, hobbies or whatever makes life better. $150 → Build savingsEmergency fund, vacation, future home purchase or another goal. $100 → Pay down debtExtra payment toward a credit card, auto loan or other balance. There’s nothing magical about those percentages. The important part is deciding before the money disappears. 5. Automate the Part You Want to Keep One of the easiest ways to prevent lifestyle creep is to make saving happen before you have the opportunity to spend the money. If your paycheck increased by $200, consider automatically moving $50, $100 or whatever amount works for your budget into savings each payday. That changes the question from: “How much can I save at the end of the month?” to: “How do I want to spend what’s left after I’ve saved?” Vicinity CU’s Online Banking allows members to transfer funds, set savings goals and monitor progress, making it easier to turn saving into a regular habit rather than a decision you have to make every month. 6. Give Extra Money the Right Job Once you’ve found some breathing room, where should it go? There’s no single answer for everyone, but this order can help you decide: If you have little or no emergency savings: Start there. Even a smaller cushion can help prevent an unexpected expense from immediately becoming credit card debt. If you’re carrying high-interest debt: Consider directing extra money toward the balance charging you the most interest while continuing to make required payments on your other debts. If your emergency savings is in good shape and expensive debt is under control: Start putting more toward longer-term goals—retirement, a future home, education, travel or whatever matters most to you. And remember that your money doesn’t necessarily have to sit in the same account forever. Depending on when you’ll need it, different savings options may make sense. 7. Try the “Next Raise” Rule Here’s one habit worth starting before your next pay increase arrives. Decide now what you’ll do the next time your income increases. For example: Every time my take-home pay increases, I’ll automatically save 50% of the

Would You Fall for This Scam? Test Yourself

Your phone buzzes. “Illinois Tollway Alert: You have an unpaid toll. Pay immediately to avoid additional penalties.” There’s a link underneath. You drive on Illinois toll roads. The message looks official. And you definitely don’t want another fee. What do you do? Click the link and check the amount.B. Reply and ask for more information.C. Ignore the link and verify the issue through an official source.D. Forward it to someone else and ask if they think it’s real.   Answer: C. If this one almost got you, that’s exactly the point. Scams aren’t always obvious anymore. They can look like messages from financial institutions, government agencies, delivery services and companies you recognize. They may even reference situations that feel completely believable. And scammers are getting expensive. According to the Federal Trade Commission, consumers reported losing approximately $15.9 billion to fraud in 2025. Imposter scams alone accounted for more than $3.5 billion in reported losses. So, how scam-proof are you? Let’s find out. Scenario #1: The Unpaid Illinois Toll That first example isn’t random. Illinois consumers have been warned about scam texts claiming the recipient has an unpaid traffic or tollway violation and needs to make an immediate payment. The urgency is part of the trick. The goal is to get you to click before you stop and question whether the message is legitimate. The safer move: Don’t click the link or respond to the message. Instead, go directly to the official website or contact the agency using contact information you’ve independently verified. And don’t assume a message is legitimate simply because it appears to come from a local number. Scenario #2: “There’s Suspicious Activity on Your Account” You receive a text: “Fraud Alert: A $487.23 transaction was attempted on your account. Was this you?” You definitely didn’t make that purchase. What should you do? Reply “NO.”B. Click the link to lock your account.C. Call the financial institution using a number you know is legitimate.D. Provide your account information so the transaction can be canceled.   Answer: C. Fake financial institution alerts are a common form of impersonation scam. The message creates an urgent problem—and then conveniently gives you a way to “fix” it. Instead of interacting with the message, independently contact your financial institution. If a message claims to be from Vicinity Credit Union and something doesn’t feel right, contact us directly using the number on the back of your card or the contact information on our official website. Scenario #3: Your Package Can’t Be Delivered You’re expecting a package when this arrives: “Delivery unsuccessful. Please confirm your address and pay a small redelivery fee.” Perfect timing. Or is it? Pay the fee. It’s only a couple dollars.B. Click the link to check the tracking number.C. Go directly to the delivery company’s website or app and check your shipment there.D. Reply with your address.   Answer: C. Package-delivery scams were among the most commonly reported text scams in recent FTC data. And that tiny “redelivery fee” may not be the real objective. The fake website could be designed to capture your card number or other personal information. When you’re expecting a package, that coincidence can make the scam particularly convincing. Skip the link and check your shipment independently. Scenario #4: Someone From Vicinity Credit Union Calls You Your phone rings and the caller ID says Vicinity Credit Union. The caller says there’s suspicious activity on your account and needs you to confirm your online banking credentials or provide sensitive information. The caller ID says Vicinity Credit Union, so it’s safe…right? What should you do? Provide the information since the caller ID says Vicinity Credit Union.B. Ask the caller to prove they work for Vicinity before continuing.C. Hang up and contact Vicinity CU directly using a number you know is legitimate.D. Stay on the line but refuse to provide your password.   Answer: C. Caller ID can be spoofed, meaning scammers can make a call appear to come from a legitimate organization. If someone unexpectedly contacts you claiming to be from Vicinity CU and asks for sensitive information, hang up. Then contact Vicinity CU directly using a number you know is legitimate. Never let the urgency of a call pressure you into providing information you normally wouldn’t share. Scenario #5: “Can You Send Me the Code?” You receive a verification code on your phone. A moment later, someone claiming to be helping with your account asks you to read the code back to them. What do you do? Give them the code since they’re already helping with your account.B. Ask them why they need it before deciding.C. Give them the code, then immediately change your password.D. Keep the code to yourself and end the conversation.   Answer: D. Verification codes are designed to prove you are the person accessing your account. Someone asking you to provide one may be attempting to get past an account’s security protections. Treat verification codes like passwords: don’t give them to someone who unexpectedly contacts you. How Did You Do? 5 correct: Scam spotter. Keep it up.3–4 correct: Pretty sharp—but remember, scammers only need you to act quickly once.0–2 correct: Time for a fraud-defense refresh. The good news? Knowing what to look for is one of your best defenses. Whatever your score, remember one simple rule: Stop. Verify. Then act. Scammers want urgency. They want you worried about the strange transaction, unpaid toll, locked account or missing package. Taking even a moment to independently verify what’s happening can make all the difference. Think Something’s Not Right? If you notice suspicious activity on your Vicinity Credit Union account or receive a communication claiming to be from Vicinity CU that doesn’t seem right, contact us directly. You can also visit our Fraud Awareness resources for more information about phishing, text scams, card fraud, identity theft and impersonation scams. Stay alert. Stay informed. And when in doubt, verify before you act.  

Fall in Chicago Without Blowing Your Budget

There’s something about fall in Chicago. The heat finally starts to let up. Football is back. Neighborhood calendars fill up. The lakefront feels different. And suddenly, staying home all weekend doesn’t sound like an option. The only problem? Having fun can get expensive fast. A couple of dinners out. Tickets to a game. Fall activities with the kids. A weekend getaway. Coffee here, parking there—and suddenly you’ve spent a lot more than you realized. At Vicinity Credit Union, we don’t think enjoying your neighborhood and reaching your financial goals have to be competing priorities. So before your fall calendar fills up, here are a few ways to enjoy the season without spending the rest of the year recovering from it. Start With a Fall Fun Number Here’s a budgeting strategy that’s considerably more enjoyable than being told to stop spending money: Decide how much you want to spend on fun. Maybe you can comfortably spend $200 each month on restaurants, activities and entertainment. Maybe it’s $500. The number isn’t the important part. Knowing the number is. Look at what you have coming in, subtract your regular expenses and savings commitments, and determine how much you can comfortably dedicate to enjoying the season. Then use it. Financial wellness isn’t about seeing who can spend the least amount of money. It’s about making choices that allow you to enjoy today and still feel good about tomorrow. Become a Tourist in Your Own Vicinity You don’t have to travel far to have a good weekend. One of the best things about living in and around Chicago is that there’s always another neighborhood, park, restaurant, museum, trail or community event to explore. And sometimes the least expensive adventures are practically in your backyard. Pack lunch and spend the afternoon by the lake. Explore a neighborhood you’ve never really walked around. Check out a local farmers market. Visit the library. Find a free community event. Take the kids to a park you haven’t visited. Grab coffee from a neighborhood business and go for a walk. The goal isn’t to spend nothing. It’s to get more enjoyment out of what you do spend. Give Yourself a Weekend Spending Limit Chicago weekends have a funny way of becoming: “We’ll just grab dinner.” Then dinner becomes drinks. Then parking. Then brunch tomorrow. Then you remember you bought tickets to something Sunday. None of those decisions is necessarily a problem individually. It’s the total that can surprise you. Before a busy weekend, decide what you’re comfortable spending. For example: Friday dinner: $75Saturday activity: $50Coffee/snacks: $25Sunday plans: $50 Weekend budget: $200 Now you can make tradeoffs. Want the nicer dinner Friday? Great. Maybe Saturday becomes a free activity. The point isn’t to remove spontaneity. It’s to give your spontaneity a budget. Make Your Money Work Harder Between Adventures Fall is also a good time to look at money that’s just sitting around. If you’ve built up savings, ask yourself: Is it in the right account? Money you’re keeping for emergencies has a different job than money you’re saving for a holiday or vacation. And money you won’t need for a longer period may have different savings options available. Vicinity CU offers traditional savings as well as money market accounts, certificates, Holiday & Vacation Club Savings and other options members can explore depending on their goals.  You don’t necessarily need to change anything. But it’s worth asking whether your money is doing as much for you as it could. Start Your Holiday Fund Now Yes, we know. It’s September. We’re talking about the holidays anyway. Because December You is going to be very happy if thought about this in September. Consider what you typically spend on: Gifts. Food. Travel. Decorations. Parties. Family activities. Year-end giving. Come up with a rough number and divide it by the number of paychecks you have before you expect to start spending. Want $800 available? If you have eight paychecks to get there, setting aside $100 from each gets you to your goal without having to find $800 all at once. Vicinity CU also offers a Holiday & Vacation Club Savings Account, specifically designed to help members put money aside for upcoming expenses.  Get Your Car Ready for What’s Coming Every Chicagoan knows what’s on the other side of a beautiful fall. We won’t say the W-word yet. But you know. Before temperatures really drop, fall is a good time to check your: Tires. Battery. Brakes. Fluids. Windshield wipers. Heat and defroster. Preventive maintenance may cost something today, but catching an issue early could help prevent a much more expensive surprise later. And while you’re thinking about your vehicle, look at your auto loan too. If your vehicle is financed somewhere else, compare the rate, payment and remaining term with current options. Refinancing isn’t automatically the right choice, but if your credit or financial situation has changed since you originally financed the vehicle, it may be worth asking whether your current loan still makes sense. Vicinity CU offers auto financing and refinancing options for members.  Spend Where You Live There’s another way to make your fall spending count: Keep some of it close to home. Try the restaurant down the street you’ve been meaning to visit. Buy your coffee from the neighborhood shop. Visit the local bookstore. Check out a community event. Supporting local businesses keeps more activity within the communities where we live and work—and gives you a chance to discover something new without traveling very far. Chicago and its surrounding communities are in our vicinity. And we’re proud to be part of them. Make a Fall Bucket List Here’s our challenge for September. Sit down and come up with five things you want to do before fall is over. Maybe it’s: One thing that’s completely free. One thing you’ve never done in Chicago. One local business you want to support. One experience you’ve been wanting to spend money on. One thing that gets you outside before winter arrives. Then decide what those five

How Lenders Use Debt-to-Income to Evaluate Your Loan Application

Your debt-to-income or DTI ratio matters more than you may think. Do one thing: Don’t rely solely on your credit score before applying for a home loan. Use an online debt-to-income or DTI calculator to figure out what your debt-to-income ratio will be with a new loan ahead of time. The Number One Reason for Loan Rejections When evaluating home loan applications, lenders look for more than just a solid credit score. Most often, they look at the bigger picture of your financial life, including your debt-to-income ratio (DTI). Impact of Debt-to-Income According to a May 2026 report from the Federal Reserve Bank of Saint Louis, the single most important metric is your debt-to-income ratio. What is DTI? The share of your gross monthly income used to pay back debt (including the interest payment and the amortization of the principal). This ratio is the number one reason lenders give when rejecting an application, notes the Fed, making up some 35% of all denials, which was higher than credit history (at 29%), collateral, and every other factor reported. Why is that? A high ratio can signal that someone’s income may not be enough to cover the new loan and all of the other current monthly debt payments. People with Good Credit Scores Still Have Loan Applications Denied Jeff Judge, CFP, AEP, ChFC, a managing partner with Chesapeake Financial Planners, says he works with clients who have been blindsided by a loan denial despite carrying a 740 (or higher) credit score. “The culprit, almost every time, is DTI,” he explains. “Lenders care about credit score because it tells them how reliably you’ve managed debt in the past. But DTI tells them whether you can handle one more payment right now.” What’s an Acceptable Debt-to-Income Ratio? So, what should your DTI be to qualify for a loan? It depends. For the best financing terms, you’ll want to have a DTI at 36% or lower, says Judge, noting that’s well below the number that comes up most often in conventional mortgage lending, which is 43%. Why is 43% Significant? The 43% DTI threshold is “roughly where Fannie Mae and most traditional lenders draw the line,” he explains. “The real target is 36% or below, especially if you’re carrying variable-rate consumer debt. Some FHA loans go higher, and I’ve seen approvals up to 50%, but those clients often pay for it with a higher interest rate.” Calculating your DTI To determine your DTI for a mortgage, you can skip the guesswork and use an online calculator. There are dozens to choose from. If you would rather go the old-school route to calculate, do the following: Add up all of your minimum monthly debt payments.• Divide the total by your gross monthly income. (Pro-tip: You will also want to add in a potential monthly payment for a new loan that includes interest, insurance, and property taxes.) Debt to Include in Your Debt-to-Income Calculation When calculating your DTI, make sure to include the following types of debt and other obligations in the first part of your equation: Alimony payments Car loan payments Child support payments Credit card payments Personal loan payments Student loan payments (often including deferred loans) A Note on Dealing with Deferred Loans and DTI Unfortunately, things like deferred student loans can be a landmine when determining DTI. They are often counted in the mix even when payments aren’t currently due, notes Judge. If you are in this situation, it’s smart to check in with your lender to see if a deferred student loan will be counted toward your DTI. How to Improve Your Debt-to-Income Ratio When it comes to your DTI, the two levers at work are income and debt. Because income may be harder to bump up more quickly, Judge says, it’s often more expedient to chip away at debt. He tells clients to consider these actions to lower DTI: Target your highest-balance revolving accounts first. Pay down small balances with fixed monthly payments, too. Delay any other new financing for at least 90 days before a major application. Request a credit limit increase on existing revolving accounts (then make sure you keep a lid on usage). Get more information on how to use credit limit increases strategically. DTI vs Credit Scores Key Takeaways While it’s important to maintain a strong credit score before applying for a mortgage or refinancing an older home loan, a credit score above 740 won’t save you if your DTI is over 43%, says Judge. But remember, monthly debt obligations are movable before an application. If you are in the market for a home loan or looking to refinance, now is the time to map out exactly what’s going into your DTI so you can get a better idea of how to bring the ratio down. With reporting by Casandra Andrews. – Jean Chatzky

Should You Close Unused Credit Cards?

Learn what to do with unused credit cards. When you stop using a credit card, it can be tempting to close the account and move on. Maybe you’ve upgraded to a rewards card with better perks, paid off old debt, or simply want fewer accounts to manage. While closing an unused card may seem like a smart way to simplify your finances, it can sometimes hurt your credit score. Before you cancel a credit card, it’s important to understand how keeping the account open can benefit your credit health. How Unused Credit Cards Can Help Your Credit Score Your credit score is influenced by several factors, and an open credit card account can positively affect many of them. 1. It Helps Lower Your Credit Utilization Ratio Credit utilization measures how much of your available credit you’re using. It’s calculated by dividing your total credit card balances by your total credit limits. For example: Card A limit: $5,000 Card B limit: $5,000 Total available credit: $10,000 Total balance: $2,000 Your utilization ratio is 20%. If you close Card B, your available credit drops to $5,000 while your balance remains $2,000. Your utilization ratio jumps to 40%, which could negatively impact your credit score. Many experts recommend keeping utilization below 30%, and staying under 10% may be even better for maximizing your score. Get more tips on the fastest ways to improve utilization. 2. It Supports a Longer Credit History The length of your credit history plays a role in your credit score. Older accounts help demonstrate a long track record of managing credit responsibly. While closed accounts may remain on your credit report for years, keeping older accounts open can continue strengthening your overall credit profile over time. 3. It Contributes to Your Credit Mix Lenders like to see that you can manage different types of credit responsibly. Credit cards are a key part of your credit mix, alongside loans such as mortgages, auto loans, and student loans. Closing a credit card may reduce the diversity of your credit profile, especially if you have only a few open accounts. 4. It Gives You More Opportunities to Build Positive Payment History Payment history is the single most important factor in most credit scoring models.Even if you rarely use a card, making an occasional small purchase and paying the balance in full can add another positive payment to your credit report. Over time, those on-time payments help reinforce responsible credit management. When Closing a Credit Card Might Make Sense Although keeping a card open is often beneficial, there are situations where closing an account could be the right decision. Consider closing a card if: The annual fee outweighs the benefits you receive. The account encourages overspending or creates financial stress. The card has unfavorable terms that no longer meet your needs. You are simplifying your finances, and the impact on your credit score would be minimal. If an annual fee is your main concern, ask the issuer whether you can downgrade to a no- annual-fee version of the card. This allows you to keep the account open while avoiding the recurring cost. How to Keep Credit Cards Active Credit card issuers may eventually close inactive accounts, so it’s a good idea to use unused cards occasionally. Try these simple strategies: Put a small recurring bill on the card, such as a streaming subscription. Use the card for a small purchase every few months. Set up automatic payments to ensure balances are paid on time. Monitor the account regularly for fraud or unauthorized charges. These small actions can help keep the account active while supporting your credit profile. Action Steps Before You Close an Unused Card Before canceling any credit card, ask yourself: Will closing it increase my credit utilization ratio? Is it one of my oldest accounts? Does it have an annual fee, and can I switch to a no-fee version? Could I keep it active with occasional small purchases? Will closing it meaningfully simplify my finances? If the answer to most of these questions is “no,” keeping the account open may be the better choice. Do one thing. Before closing an unused credit card, calculate how it would affect your credit utilization and overall credit profile. If the card doesn’t cost you money to keep, consider leaving it open and using it occasionally to help maintain a healthy credit score. – Chris O’Shea  

How to Rebuild Credit After Bankruptcy

Practical tips and realistic timeframes to rebuild credit after bankruptcy. Bankruptcy can feel like a permanent financial setback. For many people, it comes with stress, embarrassment, and the fear that their credit will never recover. But the reality is far more hopeful. You can rebuild credit after a bankruptcy. Hope to Rebuild Credit After Bankruptcy Bankruptcy does have a serious impact on your credit, but it’s not a life sentence. In fact, bankruptcy can also provide a clean financial slate and an opportunity to rebuild stronger financial habits. Recovery is possible, many people can improve their credit steadily within the first year — but it requires patience, consistency, and a realistic understanding of how the process works. The Difference in Bankruptcies The type of bankruptcy you file affects both your repayment obligations and how long the bankruptcy stays on your credit report. Chapter 7 Bankruptcy Chapter 7 bankruptcy is often called “liquidation bankruptcy.” Certain assets may be sold to help repay creditors, and eligible debts are typically discharged relatively quickly. Chapter 7 Key Facts Typically completed in a few months. Eliminates many unsecured debts. Remains on your credit report for up to 10 years from the filing date. Chapter 7 removes debts without a repayment plan, so lenders tend to view it as more severe than Chapter 13, meaning it could take longer to rebuild credit after bankruptcy. Chapter 13 Bankruptcy Chapter 13 bankruptcy involves a court-approved repayment plan that usually lasts three to five years. Chapter 13 Key Facts More flexibility to repay part of your debts over time. May allow you to retain certain assets. Remains on your credit report for up to 7 years from the filing date Some lenders view Chapter 13 more favorably because it demonstrates an effort to repay creditors. Bankruptcy is Damaging — But Not Permanent One of the biggest misconceptions about bankruptcy is that your credit is “ruined forever.” That simply isn’t true. Although bankruptcy initially causes a major drop in your credit score, its impact gradually decreases over time — especially if you begin rebuilding credit responsibly right away. Start to Rebuild Credit In many cases, people can start qualifying for secured credit products, auto loans, or even mortgages again before the bankruptcy falls off their report. Find out if a secured card is right for you. The key is what happens after the bankruptcy, not just the bankruptcy itself. Realistic Timeline to Rebuild Credit After Bankruptcy Rebuilding credit after bankruptcy takes time, but progress often starts sooner than many people expect. Stabilize Your Finances After Bankruptcy In months 1 to 3, focus on rebuilding financial stability by: Regularly reviewing your credit reports. Creating a manageable budget. Building your emergency savings. Paying all current bills on time. You should also keep important bankruptcy documents, including discharge paperwork and court records, since lenders may request them later. Start to Rebuild Credit After Bankruptcy For months 3 to 6, once your finances are stable, begin rebuilding your credit with tools like: Secured credit cards Credit-builder loans Use your credit carefully, keep balances low, and make every payment on time to begin establishing a positive payment history. Build Positive Momentum During months 6 to 12, consistent habits help rebuild your credit profile. Here are some key things to focus on: On-time payments, every month Low credit utilization (try to keep it under 30%) Avoiding unnecessary debt. Monitoring your credit reports regularly Strengthen Your Credit Profile Many people begin rebuilding their credit to the fair or good credit range within the first couple of years after bankruptcy. Over time, lenders place more weight on your recent financial behavior than the bankruptcy itself. Habits That Support Faster Recovery You can strengthen your credit recovery by making every payment on time, keeping credit card balances low, building an emergency savings account, avoiding too many new credit applications, and monitoring your credit reports for errors and tracking your progress. Emotional Recovery Matters Too Bankruptcy is not only a financial event — it can also be emotionally challenging. Many people feel shame or frustration after filing, but bankruptcy laws exist because financial hardship can happen to anyone. Medical expenses, job loss, divorce, and economic downturns can all contribute to overwhelming debt. Financial Reset Instead of viewing bankruptcy as failure, it can help to see it as a reset point and an opportunity to build healthier financial habits moving forward. Rebuild Credit After Bankruptcy The process of credit rebuilding following a bankruptcy takes time, but it is absolutely possible. Here are some key things to remember: Chapter 7 bankruptcy can stay on your report for up to 10 years. Chapter 13 bankruptcy can remain on your credit report for up to 7 years. Credit recovery often begins within months, not years. Responsible habits matter more than quick fixes. Small Moves Compound Over Time The process may feel slow at times, but consistent progress adds up. Every on-time payment, every dollar saved, and every smart financial decision helps move you toward stronger credit and greater financial stability. Do one thing: Use your credit carefully by keeping balances low and making every payment on time and you’ll see some small results before you know it.   Author – Chris O’Shea

How to Rebuild Credit Without Taking on More Debt

Learn tips for rebuilding credit with limited accounts. Rebuilding credit can feel overwhelming, especially after a financial setback. When your score takes a major hit, it can seem like every option to fix it involves taking on more debt or paying high interest to prove your creditworthiness. It’s frustrating, and it can feel like a trap. But remember, you’re not alone. We got you. Success Leaves Clues The good news is that others have been in a similar situation and weathered the storm, and you can learn from them to rebuild, too. You don’t have to dig a deeper hole to rebuild your credit. There are steady, proven ways to improve your score using what you already have, without risky shortcuts. Start With Your Bills One of the easiest wins is making sure your everyday payments actually count. Things like the following can help: Rent Utilities Some subscription services These don’t always show up on your credit report by default—but they can. There are services (including some offered through credit bureaus) that let you link your bank account so those on-time payments get reported. If you’re already paying these bills consistently, you might as well get credit for it. Become an Authorized User If you have someone you trust—a family member or close friend with strong credit, you can ask if they’d be willing to add you as an authorized user on one of their credit cards. Passive Credit Building. You don’t even have to use the card. Just being associated with an account that has a good payment history and low balances can help strengthen your credit profile. Of course, this only works if the primary cardholder manages their credit well, so choose carefully. Use a Secured Card, Responsibly If you need to rebuild from the ground up, a secured credit card can be a solid option. How a Secure Card Works Many financial institutions offer secure credit cards. Your current bank or credit union may, so check there first. Secured cards are not about borrowing; they’re about demonstrating consistent, responsible use. The basic process is as follows: You put down a cash deposit (as collateral) This deposit amount becomes your credit limit. Use your secured card for a small and predictable expense each month, like a subscription or utility bill. Pay it off in full each month. Over time, that steady pattern shows lenders you’re reliable. Note: One thing you’ll want to ensure before you open a secured card is to ask your financial institution if secured card transactions will be reported to the credit bureaus. You want to make sure that you are getting “credit” for the good payment history. Biggest Impact Areas Rebuilding credit takes time and patience. Since you cannot make time move any faster, you can practice patience. The real progress doesn’t come from quick fixes—it comes from consistency: Paying every bill on time Keeping balances low Avoiding unnecessary new debt That might sound overly simple, but it’s powerful. Credit scores reward habits, not hacks. Bottom Line It’s easy to feel discouraged after a financial setback, especially if it wasn’t entirely in your control. But credit isn’t permanent—it’s rebuildable. Every on-time payment, every low balance, every smart decision adds up over time. Do One Thing: Focus on keeping your balances low and your payments on time, every time. If you remain consistent, you’ll see your score rise over time.   Author – Chris O’Shea

Halfway Through the Year: How’s Your Financial Progress?

The end of June marks the halfway point of the year. Remember those goals you set back in January? Maybe you planned to save more, pay down debt, build your emergency fund, or simply get a better handle on your finances. If you’re exactly where you hoped you’d be, congratulations! If you’re not, you’re in good company. The good news? You don’t need to wait until January to make progress. The halfway point of the year is the perfect opportunity to pause, reflect, and make a few adjustments before the second half of the year begins. Start With a Quick Financial Check-In You don’t need a complicated spreadsheet or hours of analysis. Start by asking yourself a few simple questions: Have I made progress toward my savings goals? Has my debt increased, decreased, or stayed the same? Am I spending more than I expected? Do I have an emergency fund? Am I comfortable with where I am financially today? Your answers can help identify where to focus your attention over the next six months. Review Your Savings Goals Take a look at the goals you set earlier this year. Maybe you were saving for a vacation, building an emergency fund, planning a home improvement project, or preparing for the holidays. If you’re on track, keep going. If you’re behind, don’t get discouraged. Even small contributions can make a difference over time. Consider setting up automatic transfers to a savings account to make saving a consistent habit. Remember, progress doesn’t have to be perfect to be meaningful. Take a Look at Your Debt Debt can be easy to ignore when life gets busy, but a mid-year review can help you stay focused. Review: Credit card balances Auto loans Personal loans Student loans Look for opportunities to pay a little extra toward higher-interest balances or create a plan to reduce debt over time. Even small adjustments can help improve your financial position by year’s end. Check Your Credit Score Your credit score plays an important role in many areas of your financial life, from loan approvals to interest rates. Mid-year is a great time to: Review your credit score Check for errors on your credit report Monitor your progress if you’re working to improve your credit Understanding where you stand today can help you make informed financial decisions tomorrow. Don’t Forget About the Holidays It may feel early, but the holidays will be here before you know it. Starting now gives you time to prepare without feeling rushed. Setting aside even a small amount each week can help reduce financial stress later in the year. For example: Saving $25 per week from July through December could add up to more than $600. Saving $50 per week could result in more than $1,300. Your future self may thank you. Focus on Progress, Not Perfection Financial wellness isn’t about getting everything right. It’s about making informed decisions, building healthy habits, and continuing to move forward. Whether you’ve exceeded your goals or experienced a few setbacks, the second half of the year offers a fresh opportunity to make progress. A few small changes today can have a meaningful impact by the time December arrives. The Bottom Line The halfway point of the year isn’t just a date on the calendar. It’s a chance to celebrate your progress, reassess your goals, and set yourself up for success during the months ahead. Take a few minutes to check in with your finances. You may be closer to your goals than you think.

5 Ways to Give Yourself a Raise Without Changing Jobs

If your paycheck feels like it doesn’t stretch as far as it used to, you’re not alone. Between rising grocery costs, higher utility bills, and everyday expenses that seem to keep creeping upward, many households are looking for ways to create more breathing room in their budgets. The good news? Giving yourself a financial boost doesn’t always require a new job or a bigger paycheck. Sometimes, small changes can have a significant impact on your monthly finances. Here are five practical ways to put more money back in your pocket. 1. Review Your Recurring Expenses Many of us sign up for subscriptions, streaming services, and memberships that quietly renew month after month. Take 15 minutes to review your monthly statements and identify any services you no longer use or need. Even eliminating a few small charges can add up to hundreds of dollars each year. 2. Tackle High-Interest Debt Credit card interest can make it difficult to get ahead financially. If you’re carrying balances on multiple cards, consider creating a payoff plan or exploring options that could help simplify payments and reduce interest costs. The less money you spend on interest, the more money stays in your budget. 3. Automate Your Savings Saving money becomes much easier when you remove the temptation to spend it first. Set up an automatic transfer from checking to savings each payday—even if it’s only $10 or $20. Small contributions can add up over time and help build an emergency fund for unexpected expenses. 4. Negotiate or Shop Around Insurance premiums, cell phone plans, internet service, and other recurring bills often increase over time. Contact providers periodically to ask about discounts, promotions, or lower-cost options. A quick phone call could result in meaningful monthly savings. 5. Make a Plan for Your Financial Goals Whether you’re paying down debt, saving for a vacation, or building an emergency fund, having a clear goal makes it easier to stay motivated. Start with one goal and one action step. Progress doesn’t have to be perfect—it just has to start. Small Changes Can Create Big Results Improving your financial situation doesn’t always require a dramatic change. Often, it’s the small, intentional decisions made consistently over time that have the biggest impact. At Vicinity Credit Union, we’re committed to helping our members build financial confidence and make the most of every dollar. If you’d like help exploring ways to improve your financial wellness, we’re here to help.  

Give Yourself the Gift of Peace: How Smart Savings Can Make This Holiday Season Less Stressful

As the days grow shorter and the holiday buzz ramps up, even the most enthusiastic celebrators can feel a little overwhelmed. Between gift-giving, travel, gatherings, and year-end errands, it’s easy to see why this time of year can challenge both our budget and our sense of calm. Here’s the good news: with a little planning and the right savings habit, you can actually reduce stress this holiday season instead of adding to it. 1. Know the stress-triggers (and prepare for them) Some of the biggest financial stressors this time of year: When you recognize these triggers early, you can plan ahead and shift from reactive spending to intentional saving. 2. Build your buffer before the rush One of the simplest (yet most powerful) financial habits: putting away regularly for upcoming expenses. Rather than waiting until November or December and then scrambling, you make the cost invisible by slicing it into manageable pieces over time. For example: When the money is already set aside, your mindset shifts from “How do I afford this?” to “I planned for this.” Your sleep gets better, your stress drops, and you’re more present. 3. Let your savings do the work for you That’s where Club Accounts like our Holiday & Vacation Club come in. With features like: Because it’s separate, consistent, and automatic, you’re less tempted to dip into it. You’re less likely to blame the budget for your stress. And when the holiday season arrives, you’re not scrambling—you’re simply enjoying. 4. Stress-reduction bonus: it’s not just about money When you’ve prepaid for big expenses, you free up your headspace to focus on what really matters: time with loved ones, meaningful experiences, rest and rejuvenation. No surprise bills. No credit card anxiety. Just. … less mental load. And that’s what real wellness is about. 5. Quick action-steps (right now) This year, let your savings be a source of calm, not chaos. With a small plan in place now, you’ll walk into December ready—financially and mentally.Want help setting it up? Visit our Holiday & Vacation Club Savings page or talk to a Vicinity CU team member about how we can get you started. You’ll thank yourself in December.