Q: I’m in the market for a new set of wheels, and I’ve seen some dealers advertising zero-percent financing. Should I take this offer?

A: An auto loan without any interest sounds like a dream; however, there are many considerations before deciding to take out a zero-percent financing loan. Let’s take a closer look at zero-percent financing so you can make an informed, responsible decision about your auto loan.

What is zero-percent financing?

An auto loan offer of zero-percent financing means the dealer financer is offering to lend the buyer money without charging any interest over the life of the loan.

With traditional loans, the lender is willing to extend money to the buyer because the lender will reap the benefits of the interest payments over the life of the loan. A zero-percent car loan, though, offers no reward for the lender. In fact, the loan is actually being offered by the auto manufacturer. The automaker stands to benefit from the loan as much as it would from an upfront cash payment for one of its cars. The only difference is that the money is earned over a longer time span. Automakers may offer zero-percent financing on slower-selling models or to help clear out stale inventory to make room for newer models.

Can anyone qualify for zero-percent financing? 

Zero-percent financing may be heavily advertised, but it can be difficult to qualify for one of these loans. They are typically only offered to buyers who have excellent credit, including a credit score above 700 and a long credit history. These buyers are more likely to make every payment on time and they may even pay off the loan early, making it low risk and profitable for the automaker.

It’s also important to note that not everyone can afford to take out a zero-percent financing loan. Since the lenders are only profiting from the actual sale on these loans, they will rarely agree to bargain down the price, nor do they offer any other incentives, such as cash-back rebates.

When is zero-percent financing a good idea?

For buyers who qualify, a zero-percent financing loan may be a way to save on steep interest payments throughout the life of an auto loan. A buyer can easily save several thousands of dollars in interest payments over the life of a zero-financing loan.

It is crucial that qualifying buyers crunch the numbers to be sure they can easily afford the monthly payments on a zero-interest loan. If all the numbers add up and the buyer’s credit makes the cut, a zero-interest loan can be a great way to save money on a new set of wheels.

When is zero-percent financing a bad idea

Zero-percent financing may not be in the best interest of buyers who can’t actually afford the loan. As mentioned, lenders generally will not bring down the price on a car with a zero-percent financing offer. Buyers may be blinded by the temptation of not paying any interest and therefore consider a vehicle that has a higher monthly price tag than they originally planned.

Another point to consider before committing to a zero-down financing loan is the term of the loan. Some of these loans feature longer terms than traditional auto loans, as much as six years. Six years is a long time to be paying for a car. The buyer’s auto needs may change before then and they won’t own the car for a year longer than they would have through a traditional loan. On the flip side, lots of zero-percent financing loans are only four years long, which can significantly increase the monthly payment amount.

Even if the loan terms do meet the buyer’s needs, it still may be worthwhile to skip the zero-percent financing and take out a traditional loan so the buyer will not miss out on cash-back rebates. These are typically not available on auto loans with special financing offers, and can mean missing out on robust incentives.

Let’s take a look at the purchase of a single car and run it through both kinds of loans.

A car is selling for $20,000 with the offer of a zero-percent financing loan that needs to be paid off in four years. Monthly payments on this loan will amount to $416.

Alternatively, the buyer can consider a traditional loan for the same car. An auto loan furnished by a credit union at the average national rate according to data extracted by the NCUA would give the loan an annual percentage rate (APR) of 3.45 percent. Over five years, this would amount to a monthly payment of $363.

In addition, with a traditional loan, the buyer can take advantage of manufacturer rebates. If this car would have an offer of a $2,500 cash-back rebate, its price would drop to $17,500. Through a Mutual Credit Union loan with an APR of 3.45 percent, the monthly payments would only be $318. The total amount paid on the car would also be less than the amount paid through the no-interest loan, at $19,080.

If the buyer chose to take out a loan through a bank, with auto loan APRs averaging at 5.10 percent, the monthly payments (without the manufacturer’s rebate) would be $378. If the manufacturer offered a rebate, that amount would fall to $331 a month.

Evidently, when there is a shorter loan term involved, it is not always worthwhile to take out a zero-percent financing auto loan.

If the offer does not feature a shorter loan term, the difference between scenarios wouldn’t be as dramatic. A five-year loan on $20,000 with zero interest would cost the buyer $333 each month, only $15 more than the traditional loan through a credit union after the rebate; however, a five-year loan term may not be an option on a no-interest loan. Also, when you take out a loan through Mutual Credit Union, you’ll enjoy personalized service and zero pressure to make a decision.

It’s best to run your own numbers through a free auto loan calculator to see what your actual monthly payment would be before taking on a loan. It’s the best way to determine if you can afford the payments without overextending your budget.

If you’re ready to get started on your auto loan, stop by Mutual Credit Union today to get started. We’ll have you seated behind your new set of wheels in no time!

Applying online is easy and available 24/7 by visiting MutualCU.org. 

For a list of our current rates, visit our Rates Page.

Your Turn: Have you chosen to forego a zero-percent financing option? Tell us about it in the comments.

Preparations are underway at each of our Mutual CU branch locations for the day that we celebrate reopening to the public. Until that day, we wanted to share the steps we are working on to make our lobby areas a safe, secure environment for our staff and for our communities.

Floor circles like the image above will be placed through out the lobby area to ensure 6 ft distance between individuals. In the member service area, spacing precautions will be adjusted based on branch location. For example, a few of our branch lobbies are not large enough to have both those waiting for the teller line and those waiting for a member services representative in the same space. Other distancing measures will be made available to accomodate everyone’s safety in our smaller branch lobbies.

Clear shields have been placed at the teller windows as a protective-barrier between our staff and those they are serving. Clear shields have also been placed on the desk of each member services representative and loan officer. These shields are important in providing that extra layer of protection from person-to-person droplet spread.

We continue to deep-clean surfaces that are frequently used and have plans in place to minimize other opportunities for the virus to enter or exit our buildings through hand sanitizer stations and closed areas to the public. Our restrooms will continue to be closed to the public until further notice as well as any water fountains.

We are counting down the moments when we can safely reopen and see each of you face to face. Until then we remind you again that if you are experiencing any of the COVID-19 symptoms, traveled, or have been exposed to someone with the virus, we encourage you to use our electronic options to conduct your financial business. We are providing that list again in the notification below. Also below is a reminder of the symptoms of the COVID-19 virus.

Thank you for being a member of Mutual Credit Union and for continuing your trust in us. We will get through this together and will be stronger for you. Our Focus Is You.

For more information about Mutual Credit Union please follow this link to our webpage. For additional questions, please contact the marketing department at marketing@mutualcu.org or by calling (601) 636-7523 ext. 1226.

Video showcasing the inside our Mutual CU Branch

COVID19-symptoms

E-Services Available

 

How COVID-19 Spreads

https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/how-covid-spreads.html

COVID-19 is thought to spread mainly through close contact from person-to-person. Some people without symptoms may be able to spread the virus. We are still learning about how the virus spreads and the severity of illness it causes.

Person-to-person spread

The virus is thought to spread mainly from person-to-person.

• Between people who are in close contact with one another (within about 6 feet).
• Through respiratory droplets produced when an infected person coughs, sneezes, or talks.
• These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled into the lungs.
• COVID-19 may be spread by people who are not showing symptoms.

The virus spreads easily between people

How easily a virus spreads from person-to-person can vary. Some viruses are highly contagious, like measles, while other viruses do not spread as easily. Another factor is whether the spread is sustained, which means it goes from person-to-person without stopping.

The virus that causes COVID-19 is spreading very easily and sustainably between people. Information from the ongoing COVID-19 pandemic suggest that this virus is spreading more efficiently than influenza, but not as efficiently as measles, which is highly contagious.

The virus does not spread easily in other ways

COVID-19 is a new disease and we are still learning about how it spreads. It may be possible for COVID-19 to spread in other ways, but these are not thought to be the main ways the virus spreads.

• From touching surfaces or objects. It may be possible that a person can get COVID-19 by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes. This is not thought to be the main way the virus spreads, but we are still learning more about this virus.
• From animals to people. At this time, the risk of COVID-19 spreading from animals to people is considered to be low.
• From people to animals. It appears that the virus that causes COVID-19 can spread from people to animals in some situations. CDC is aware of a small number of pets worldwide, including cats and dogs, reported to be infected with the virus that causes COVID-19, mostly after close contact with people with COVID-19.

Protect yourself and others

The best way to prevent illness is to avoid being exposed to this virus. You can take steps to slow the spread.

• Maintain good social distance (about 6 feet). This is very important in preventing the spread of COVID-19.
• Wash your hands often with soap and water. If soap and water are not available, use a hand sanitizer that contains at least 60% alcohol.
• Routinely clean and disinfect frequently touched surfaces.

Below are handouts from the CDC to assist everyone in safely navigating this pandemic. Simply click to open.

cloth-face-covering

DIY-cloth-face-covering-instructions

stop-the-spread-of-germs

Contact: Susan Mandarino

1604 Cherry Street

Vicksburg, MS 39180

Phone: (601) 636-7523 ext. 1226

Email: marketing@mutualcu.org

Website: www.mutualcu.org

Press Release

Friday, May 22, 2020

 

Mutual Credit Union ATM Fleet Replacement Schedule

Vicksburg, Miss. – – Mutual Credit Union is excited to announce that starting Tuesday, May 26th – Friday, May 29th we will be moving forward with the replacement of each of our ATM machines located at each of our Mutual CU branch locations. These new and improved ATMs bring you the latest in security, services, and screen clarity. Members will enjoy the ability to *deposit both checks and cash at any ATM, as well as, touch-screen technology and Hi-Def visibility on each screen. We hope that by providing the schedule below we can help to minimize any inconvenience this transition might cause.

ATM Replacement Schedule

Tuesday, May 26th – Cherry Street Branch Drive-Thru ATM located at 1601 Monroe Street, Vicksburg, MS

Wednesday, May 27th – South Frontage Road Branch ATM located at 2086 South Frontage Road, Vicksburg, MS

Thursday, May 28th – Raymond Branch ATM located at 460 East Main Street, Raymond, MS

Friday, May 29th – Yazoo City Branch ATM located at 1505 Grand Avenue, Yazoo City, MS

*The deposit feature on each ATM will not be available immediately upon installation. Starting June 3rd, 2020, you will be able to use the deposit feature at each newly installed ATM. *

More information about the Pemberton Mall ATM in Vicksburg, MS, and the ATM located in the foyer of the Cherry Street branch in Vicksburg, MS, will be provided at a later date.

If the ATM that you typically frequent is down on the day above, we encourage you to access our full list of Mutual CU ATMs by visiting https://www.mutualcu.org/join-us/locations-hours.html. You also have access to a nationwide network of surcharge-Free ATMs plus other available locations through shared branching also by accessing the link above.

We appreciate your patience during this process and look forward to bringing each of our new ATMs online for you in the coming week. Thank you again for your membership and for continuing to put your trust in us now and in the years to come. Our Focus Is You.

For more information about Mutual Credit Union please follow this link to our webpage. For additional questions, please contact the marketing department at marketing@mutualcu.org or by calling (601) 636-7523 ext. 1226.

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Q: Everyone I talk to seems to have already gotten their stimulus money, but I’m still waiting for mine to arrive. Where is my stimulus check?

A: More than half of eligible Americans have already received their Economic Impact Payment, but tens of millions more are still waiting. We’ll let you in on when you can expect yours, how to help it come quicker and why you may not even be receiving a stimulus payment.

The schedule for issuing payments

The IRS is trying to get the stimulus payments out to Americans as quickly as possible, but with approximately 150 million checks that need to be issued, it will take some time.

First, the IRS is working on getting the funds to Americans via direct deposit. Most of the payments being issued to people whose account details are known by the IRS have already been distributed and the rest is scheduled to be deposited as the information is obtained.

Next, the IRS will send payments for individuals currently receiving federal benefits, such as Social Security checks, retirement or disability benefits, Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs (VA) benefits. The stimulus payments will be issued the same way these individuals receive their regular federal benefits, whether by direct deposit, Direct Express or paper check. The Treasury has promised that all Social Security and Railroad Retirement beneficiaries will receive their benefits by early May. SSI and VA beneficiaries should get their payments by mid-May.

On April 24, the IRS began issuing paper checks to Americans who have not provided their banking details. Low-income Americans are prioritized, and individuals earning an adjusted gross income (AGI) of $10,000 or less should have already received their checks. The IRS will then send out approximately 5 million paper checks each week, scheduling the mailings according to incomes in increasing $10,000 increments. For example, checks for individuals with an AGI that falls between $20,000 and $30,000 were mailed out on May 1. On May 8, the checks for people with incomes between $30,000 and $40,000 will be mailed out. This schedule will continue through Sept. 4.

How can I make my stimulus money get here quicker?

As mentioned, funds being distributed via direct deposit are issued first. The IRS will use your most recently filed taxes to determine where to send your stimulus money and the amount you are eligible to receive. If your most recently filed returns have not yet been processed, or you’ve received your refund by paper check, the government does not have your checking account information, so your payment may be delayed.

You can update this information on the recently updated track your payment portal on the IRS website. You will need your Social Security number, the gross income of your most recent tax returns, your Mutual Credit Union’s routing number ([XXXXXXXXX]) and your checking account information. Once you’ve shared your account information, your stimulus payment should be scheduled for deposit within the week.

If the IRS already has your account information and you still have not received the stimulus money, or you would prefer to receive your payment by paper check, you can track your payment on the same link. The site is updated once a day.

What if my information has changed since I filed my last tax return? 

If the checking account used for your most recently filed taxes has since been closed, the payment will bounce back to the IRS, which will then send a paper check to the home address it has on file from your tax returns.

To update a checking account, use the IRS payment portal to enter your current information.

If you’ve moved since filing taxes, you can choose to share your checking account information with the IRS, or to use another method which may include informing the U.S. Postal Service of a change of address.

What if I don’t file taxes?

If you are not required to file taxes and you are eligible for an Economic Impact Payment, you can still receive your check. Just enter your information here.

Why you may not qualify for a check 

The CARES Act does not promise payments for every American. Dependents older than 16, individuals who do not have a Social Security number and those with an AGI above $99,000, will not be getting a stimulus payment. The threshold is higher for individuals filing as a head of household, at $136,500, and up to $198,000 for joint filers.

Watch out for stimulus scams

While the IRS urges people to update their information on the payment portal, it’s important to note that they are not reaching out to individuals. If you receive a phone call, social media post, email or text message asking for your banking information, it is likely a scam. There is also no application fee or processing fee for the Economic Impact Payments. If you’re asked to pay one, it’s also a scam.

Your Turn: How are you spending your stimulus payment? Tell us about it in the comments.