Category: One Minute Reads

One-Minute Reads: What Does Collateral Mean?

When you hear the term collateral in the world of lending, it’s simply something valuable you pledge to a lender to secure a loan. Think of it as the lender’s safety net—if you can’t repay the loan, they can use the collateral to recover the money they lent you. Collateral can be many things, depending on the type of loan: Auto loan: the car you’re buying is the collateral. Mortgage: the home itself serves as the collateral. Secured personal loan: items like a savings account, share certificate, or other valuable assets can be used. Using collateral can work in your…

September 19, 2025Borrowing Basics, One Minute Reads No Comments

One Minute Reads: Are Auto Loan Rates Going Down?

It’s a question a lot of people are asking right now, and the honest answer is: no one can say for sure. Auto loan rates change with the market and economic conditions, which means they can go up, down, or stay the same depending on a wide range of factors. But here’s something you can control: where you get your auto loan. At PEFCU, we offer competitive rates on new auto loans and refinancing options—so whether you’re buying a vehicle or looking to lower your current monthly payment, we’ve got you covered. Refinancing your current auto loan from another lender…

August 5, 2025One Minute Reads, Wallet Wins No Comments

One-Minute Reads: Don’t Let Moving Costs Drain Your Wallet

Moving this summer? Don’t let hidden expenses catch you off guard. Beyond rent or mortgage, moving comes with costs like packing supplies, truck rentals, fuel, pet boarding, and more. Plan Ahead: Create a detailed budget that includes everything from movers to cleaning supplies. Compare quotes from at least three moving companies and ask about discounts. Cut Costs: Declutter as you pack to save time, space, and money. Cancel or transfer utilities and subscriptions, and avoid paying for services you no longer need. Think Post-Move: Budget for utility deposits, cleaning supplies, groceries, and any new furniture. Helpful Tools: A dedicated savings…

July 22, 2025Future Planning, One Minute Reads No Comments

One-Minute Reads: Don’t Get Caught in a Hurricane Scam

After a hurricane, scammers are quick to take advantage of people who are stressed, distracted, or in need of help. Stay alert and protect yourself from these common hurricane-related scams: Fake FEMA or Utility Calls Scammers may pose as government agencies or utility companies, asking for personal information or payment. Remember: FEMA will never ask for money to apply for assistance. Bogus Contractors If someone offers quick repairs for cash or shows up without credentials, be wary. Only work with licensed, insured contractors—ideally those recommended by someone you trust. Phony Charities Scammers often pose as disaster relief charities. Before you…

April 25, 2025One Minute Reads, Security Center No Comments

One Minute Reads: Can a Car Loan Be Transferred to Another Person?

When you’re looking to transfer a car loan to someone else, it’s natural to wonder if it’s even possible. The quick answer is: sometimes, but it depends on the lender. Many lenders do not allow direct loan transfers, as the original borrower’s credit score and financial history were assessed when the loan was granted. However, there are a few options that can work similarly: Refinancing: The person interested in taking over the loan can apply for a new loan in their name to pay off your remaining balance. They’ll need to meet the lender’s requirements, and if approved, they’ll be…

December 17, 2024One Minute Reads No Comments

One-Minute Reads: Can Auto Loans Be Paid Off Early?

Yes, in most cases, you can pay off a car loan early! Paying off your loan ahead of schedule can help you save on interest and free up your budget. However, it’s important to check your loan agreement for any prepayment penalties. Some lenders charge a fee for paying off a loan early, which could reduce or eliminate the savings you’d gain from paying it off faster. PEFCU does not charge a fee or a penalty for paying your auto loan off early. If your loan doesn’t have prepayment penalties, making extra payments or paying more than the minimum can…

November 12, 2024One Minute Reads No Comments

One-Minute Reads: Are Credit Unions Nonprofit?

Credit unions are not-for-profit organizations! Unlike banks, which aim to maximize profits for shareholders, credit unions exist to serve their members. Any earnings a credit union makes are returned to members in the form of better rates, lower fees, and enhanced services. As member-owned institutions, credit unions are guided by their members’ best interests. Members have a say in how the credit union is run, typically by voting for a volunteer board of directors. This focus on people over profits is what sets credit unions apart. Learn more about PEFCU here: https://www.pefcu.com/about/about-us/

November 4, 2024One Minute Reads No Comments

One-Minute Read: Are Credit Union CDs Safe?

Credit unions call them “share certificates,” and yes, credit union share certificates are safe. Just like banks, credit unions insure their certificates. If your credit union is federally insured by the National Credit Union Administration (NCUA), your certificates are protected up to $250,000 per depositor, per account type, making them just as secure as bank CDs insured by the FDIC. In addition to safety, credit unions often offer higher interest rates on certificates than traditional banks. So, not only is your money protected, but you could also see better returns on your investment. Click here to see current PEFCU certificate…

October 24, 2024Future Planning, One Minute Reads No Comments

One Minute Read: Are Credit Union Credit Cards Better?

When deciding between a credit card from a credit union or from a big bank, it’s essential to look at the key differences. Credit unions are not-for-profit, meaning they typically offer lower interest rates and fewer fees. Many credit union credit cards come with better terms for balance transfers, rewards, and customer service tailored to their members. Additionally, credit unions prioritize community and member well-being, so you’re more likely to experience personalized service. The PEFCU Visa® Credit Card offers 9.90% APR*, and you get one point per dollar on purchases. You can redeem points for merchandise, travel, gift cards, and…

October 8, 2024One Minute Reads No Comments

One-Minute Read: Can a Car Loan be Refinanced?

Absolutely! Refinancing an auto loan is a smart way to potentially lower your monthly payments, reduce your interest rate, or adjust your loan term to better fit your financial situation. If your credit score has increased or if rates have dropped since you received your loan, refinancing could be a great option. At PEFCU, we make the refinancing process straightforward and convenient. By refinancing your auto loan with us, you can take advantage of our competitive rates and flexible terms*. Plus, you can apply easily at PEFCU.com. Ready to see how much you could save? Visit our website today and…

September 17, 2024One Minute Reads, Wallet Wins No Comments