NSB Blog

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Assessing Your Loan Risk: What Lenders See

Posted on October 30th, 2013 in Loans by NSBblogger |

Imagine this situation: a good friend comes to you and asks if they can borrow $1,000. You don’t immediately say “yes,” but instead think, “How do I know they’ll pay it back in a timely manner?” You consider how responsible your friend is, what their spending habits are like, and you ask questions to gain more information about why they need the money and how soon they’ll be able to pay it back.

The less of a risk you appear to be, the more likely to be approved for a loan by a bank or other lender.


This is the same process banks and other lenders like Northeast Security Bank go through when you apply for a loan. They want to make sure you aren’t a risk to default and not pay them back. The approval process helps them to make better choices with who they loan money to.
But what exactly do they look at to determine your loan risk?

  • An active bank account- this shows lenders that you are both taking in and spending money and that you can manage expenses.
  • A good credit history- are you behind on payments or do you use credit wisely? Lenders like to see a blend of credit types and that you can manage your credit well.
  • Your employment situation- the longer you’ve been at a company, the more stable you are in the eyes of lenders. They want to know that you have recurring income that will continue to come in when you’re paying back your loan. A lender will also want to see pay stubs and a bank statement when you meet with them, so don’t forget to bring those.
  • Living situation- are you renting a home or do you currently have a mortgage you’re making payments on? More importantly, have you ever defaulted on mortgage payments?
  • Collateral- lenders will also want to know about any collateral you have to borrow against.

Nobody wants to be turned down for a loan. Improving the above factors and having an overall healthy financial situation is the easiest way to ensure your loan approval process goes smoothly. The loan officers at Northeast Security Bank can also help you work through the loan process to understand the ins and outs. You can get in touch with any of our lenders today by calling your local NSB branch to get started!

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Score Big: 4 Ways to Increase Your Credit Score

Posted on August 28th, 2013 in Credit score by NSBblogger |

We’ve all seen the numerous commercials on television for companies that can help you find out what your credit score is. Some use bands and catchy songs while others dress characters as superheroes. Either way, for as much as we hear about credit scores, they seem to be important.

Making payments on time and blending your credit are just two ways to boost your poor credit score.


Well, Northeast Security Bank is here to tell you that having a great credit score opens many doors, while a subpar score does the opposite. So, how do you go about improving your credit score? Here are four tips for bumping up your score to help you get the mortgage, loan, car or other big-ticket items you want and need.
Pay down your highest balance- this is key for those with multiple credit card balances. For instance, let’s say you have two credit cards. The first has a $1,600 limit and $400 balance (25% used) while the second has a $1,000 limit with an $800 balance (80% used). Pay down the second card’s balance first; the higher utilization percentage is damaging your credit score more than the other card.
Blend your credit- lenders want to see that you can handle different types and amounts of credit. Having a mix of revolving credit (credit cards) and installment credit (fixed payments and established due date) can boost your credit score.
Be timely with payments- this is an easy way to make sure your score doesn’t do a swan dive. You never know which monthly payments will end up on your credit report, so don’t take any chances. 
Protect what you have- once you have a good credit score, make sure it stays that way. Go easy on the credit cards, make payments on time and don’t ever co-sign for someone else’s debt. If they default, your credit score will end up worse than ever.
Your credit score may seem like a mystery at times, where you don’t know if it’s good or bad, or if the steps you’re taking are helping. Keep at it, and eventually you’ll reach the level you want.
We hope these tips help, and we look forward to seeing you soon!

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Best Financial Advice I Ever Received: Jared Kane

Posted on August 14th, 2013 in Best Financial Advice by NSBblogger |

Some of you may recall learning how to “think critically” while you were in school. Put simply, it means to fully understand and reflect on a decision. Mastering this skill can be handy in life, especially when it comes to your banking and financial decisions. In this installment of “The Best Financial Advice I Ever Received,” Northeast Security Bank Vice President Jared Kane offers up a few tips about how to think critically about your money.

When it comes to financial decisions, it pays to slow down and ponder your options.


First off, Jared says it’s important to learn from past decisions. Hindsight is 20/20, so being able to recognize, admit and learn from a poor financial decision will make you wiser for the future.
Second, you need to be realistic about your estimates and assumptions. If you are leaning toward one direction on a financial decision or have come to a major conclusion quickly, stop and reevaluate. Quick decisions are normally not the best, Jared says.
Next, it’s important to eliminate emotion from your decision making process, says Jared. It can cloud your thinking and lead you to justify a bad decision. At the end of the day, you have to do what is best for you, your family or anyone else depending on you, not what feels good at the time.
Finally, you have to consider all the consequences of your decisions. This can seem overwhelming, but it can prevent things from coming back and biting you in the future. Ask yourself:

  • What amount do I lose?
  • What’s the rate of return (Return on Investment/ROI)?
  • Will this tie me up financially?
  • How is this decision affected by my age or point in life?

While it may not be in your nature to slow down and really think before making a decision, it can really help when it comes to understanding the full picture.
If you have any concerns or questions about a service or product Northeast Security Bank provides to you, we’ll always take the time to talk and help you understand your future financial outlook. Get in contact with us whenever you need help!

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Getting a New Marriage off to a Great Financial Start

Posted on July 24th, 2013 in General by NSBblogger |

Is there anything better than being a newlywed? You just married the person you love and your entire life seems like a wonderful journey laid out before you. However, not everything in life is wonderful, and a lot of those negative things are surrounded by one thing: money.

Money and financial matters play a large part in making sure things go well in any marriage.


Given that it’s wedding season, we would like to offer up some advice for any newlyweds out there to help you get off to a great financial start!
“Let’s talk about it”- remember this phrase and use it often. The money conversation is not a great one to have, but it needs to be done nonetheless. While it’s not a romantic topic, it helps prepare both of you for what needs to be done financially.
No financial secrets- we’re hoping that you don’t keep anything from your spouse, but financial items – like what you have done, will do and are currently doing with your money – are on the “need to know” list.
Practice your division- not the math you learned in school, but rather the financial assets of you and your new spouse. Keep in mind some people have been financially independent most of their lives, so something like a joint checking account can be a huge step.
Learn to save- yes, everything glitters with opportunity when you first get married, but the economy is still recovering and financial danger is still lurking. This means your savings account is your new best friend; use it accordingly.
Get insured- no one likes to think about it, but bad things can and do happen. For those things, adequate life insurance and a will can help ensure that your spouse won’t be left in financial hardship should something happen to you.
We hope these tips provide some sort of help to all the newlyweds out there, and we wish you all the best! Remember that if you run into monetary roadblocks along the way, Northeast Security Bank is here to help in any way that we can.

Best Financial Advice I Ever Received: Chris Miller

Posted on July 10th, 2013 in Best Financial Advice by NSBblogger |

We hope that this blog update finds everyone enjoying their summer so far! It is indeed time for another installment of our monthly “Best Financial Advice I Ever Received” series, and this month’s spout of insight is Chris Miller, Decorah Branch Vice President. If you’re seeking a little help with how cash flow benefits business and individuals, or are wondering what the term “liquid” means when it comes to your financial life, read on!

Cash is king for both you and your business, and can help you stay liquid in case of emergencies.


“One tip of advice I have picked up over the years that consumers and business agree upon is cash is king,” Chris says, and for good reason:

  • For businesses, cash must be readily available for the purchase of new equipment or space, and cash flow is one of the most important factors when looking at the long-term success of a company.
  • For individuals, having a certain amount of cash that’s easily accessible and not hurt by swings in the market (like investments are) provides a means to pay for emergency purchases or bills.

“Being liquid demonstrates the ability to make and save money,” Chris says. “It also helps with down payments on cars, houses or equipment and can serve as a rainy day fund when the unexpected happens.”
For those that don’t know, “being liquid” refers to having the ability to quickly access funds without them losing value. This is another reason that “cash is king”: it’s easy to access from a checking or savings account, and doesn’t lose any value when you withdraw it.
Whether you are reading from a business or personal point of view, remember that cash and liquidity go hand in hand, and you always need immediate access to certain funds. If you need help determining how liquid you should be or have any other banking needs, Northeast Security Bank is more than happy to help you out.
We’ll be back with another post this month providing financial advice for newlyweds this wedding season. Until then, we hope everyone stays safe and continues enjoying their summer!

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A Few Automotive Tips for Vacation Season

Posted on July 2nd, 2013 in Automotive Tips by NSBblogger |

Two years of auto mechanic schooling at NICC taught me a lot of in-depth things about an automobile that can be very beneficial to know, but it’s not always these things that I find myself continuing to go back to.  More often  it’s the little simple things that can make the difference in our lives, and our automobiles are no different.  In school we learned there are seven important maintenance areas that just about every car owner can do themselves to help ensure their vehicle remains dependable, especially as the vacation season approaches.

Some easy do-it-yourself maintenance can prevent vehicle troubles on your vacation this summer.


 
1. Check the oil
Check the level and condition of the car’s motor oil.  It’s important for the longevity of your engine life to change the oil every 3,000 to 5,000 miles or follow what’s in the owner’s manual. If it’s time for an oil change, be sure to get it done before your trip.
2. Inspect the battery
Make sure your car’s battery and cables are securely attached and free of corrosion. A car battery typically lasts three to five years.  If you’re in that window, you may want to consider replacing the battery before it leaves you stranded.
3. Try the lights
It’s important that you’re able to see and be seen on the road. So check headlights, brake lights and turn signals and replace any burned-out lights.  This procedure helps with the safety of you and your family, but also can prevent any unwanted faulty equipment tickets.
4. Kick the tires
Take a close look at your tires. Good, well-maintained tires are critical to braking and steering. Make sure the tread has plenty of depth.  A good gage for this is if you take a penny and stick it in the groove, Lincoln’s head shouldn’t be fully exposed.  Also be sure there are no gouges in the sidewall of the tires.  You’ll also want to watch out for bulges and bald spots on your tires. If you find anything that looks suspicious, it may be time for some new tires.  If it looks funny, it may be best to ask a professional.
Compare the pressure in your tires with the recommended pressure listed in your owner’s manual and on the placard in your car door. Be sure to check tire pressure when your tires are cold early in the morning after your car has been idle overnight. Also, be sure to check the pressure in your spare tire. A lot of people neglect that, and in the event of needing that spare tire, it’s equally important that the spare is properly inflated to get you to your destination.
5. Check wiper blades and fluids
Do your wipers give you a smear-free view when it rains? If not, replace them before your trip. Don’t forget to top off your wiper fluid.
Check the level of coolant or antifreeze. Top off with a 50-50 mix of antifreeze and water as needed. If the coolant level is too low, your car could overheat which can lead to more costly repairs.
Other important fluids to check include brake fluid, power steering fluid and transmission fluid. If you don’t feel confident checking these on your own, take your car to a mechanic.
6. Tighten the gas cap
The gas cap on your vehicle needs to be on tight, and you need to have the right one.  If this cap is not secure, gas will evaporate from your tank as you drive costing additional money and on some models can even trigger a service engine light to appear on your dash.
7. Check your brakes
It’s critical that your brakes are in tip-top shape before you take off on a long road trip. When in doubt, have your brakes inspected by a mechanic.
If they’re making noises, or if you’re feeling vibrations when you hit the brakes, its time to take your vehicle in.  Brakes are an item that are not only a necessity, but if ignored will end up costing you a lot more to repair then if proper attention was given immediately.
I just wanted to share these tips with you all to ensure that your well-deserved vacation isn’t ruined by automotive trouble. From all of us at Northeast Security Bank, travel safe this vacation season!
-Bill Meyer, Vice President, Northeast Security Bank

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Best Financial Advice I Ever Received- Ben Schanbacher

Posted on June 26th, 2013 in Best Financial Advice by NSBblogger |

We’ve flipped the calendars to June and summer is officially here in Iowa, meaning vacations, summer fairs, carnivals and other entertainment and social gatherings will be crowding your calendars. However, summer is not a time to get loose with your finances. Northeast Security BankLoan Officer Ben Schanbacher provides us with this month’s dose of financial enlightenment that focuses on the simplicity of making smart financial decisions.

Smart financial decisions

Investments, 401(k)s and accounts are great, but you need to make smart financial decisions for real success!


Ben’s first piece of advice is pretty basic, but forgotten by many: “Always make sure to have a backup plan. Our first plan might not always turn out the way we think it will. Financial situations are always changing and we need to be able to adapt if needed.” This can be something as simple as a savings account with three or four months of expenses saved up to help things go smoothly.
Next, keep in mind that “Money is hard to earn and easy to lose. It’s easy to spend money, but we need to watch what we’re spending it on. Making foolish purchases might set up financial hardships down the road. Putting money away in a savings account or investing it will ensure that it will be available down the road.” Ben makes an important point: putting aside instant gratification to be more secure in the future is a savvy move.
Ben’s final point is crucial to being a smart money manager: “Your wealth can only grow as much as you do. As we gain financial knowledge we can put it to use to grow our wealth. If we stop gaining financial knowledge then we limit the growth of our wealth. Taking advantage of articles, seminars, lectures, etc. gives us the chance to grow ourselves.” The internet is a great tool for this continuing education, as is this very blog!
As Ben points out, being intelligent with our money is always about having the right account or investment. Often times it simply takes a little mental exercise to do what is right. Try to keep Ben’s advice in mind, as well as the tips from our previous employees that can be found in past posts.
As always, we are ready to help you any way we can, so call or come by any Northeast Security Bank branch today!

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The Online Shopper’s Guide to Secure Internet Purchasing

Posted on June 12th, 2013 in Online Shopping by NSBblogger |

It’s no secret: we are becoming a nation of online shoppers. Last year, consumers in the United States alone spent approximately $289 billion (yes, BILLION) on online purchases. However, convenience does come with risks. Hackers and other “e-criminals” have developed ways to dupe consumers into offering up credit card numbers, or have resorted to straight up stealing this information. Here’s how you can make sure you are making a safe and secure online transaction:

Secure online shopping

Hackers and other e-criminals will try pretty much anything to get your valuable personal information, so stay alert online

  • Look for the “S”- when you begin the transaction process on a site, check the web address. If the address starts with “https” you know you are on a secure site. There should also be a padlock symbol somewhere in the browser window (location varies by web browser).
  • Be selective with your clicks- those “funny pictures!” and “LOSE 10 POUNDS IN A WEEK!” ads may be phishing sites set up by hackers and scammers to steal your information.
  • Safeguard your computer- if you can’t remember the last time you updated your security, it’s time to do so.
  • Mix up your passwords- whether you enter your password into a website you frequent every time or have it stored, you need to update it regularly. Combine upper and lower case letters with numbers.
  • Don’t use public Wi-Fi to shop- sure, buying a new pair of jeans or some shoes while you devour your Big Mac at McDonald’s may seem convenient. However, hackers can devour your information using the public Wi-Fi at restaurants, grocery stores and other public places. Wait until you are at home to shop.

No one wants to have their identity or personal information stolen. These tips can help you avoid the e-criminals out there whether you are purchasing anything from a dress to a TV or anything in between.
 
And with an Online Banking account through Northeast Security Bank you can easily track your finances and be assured your money is in good hands. Our staff is ready and willing to help, so feel free to call or come by any of our branches. We hope to see you soon!

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