Tammy Richardson - Wayne Westland Federal Credit Union

We’ve all faced situations where we needed money—and needed it fast. Maybe your car broke down, an unexpected bill showed up, or you’re just a little short on rent this month. The idea of walking into a payday lender and walking out with cash in hand might seem like the perfect solution. But while this quick fix may offer temporary relief, it often comes with long-term consequences that do more harm than good.

What Is Predatory Payday Lending?

Predatory payday lending happens when lenders use tricky or unfair tactics to get people to take out loans that mostly benefit the lender—not the borrower. Payday loans are typically short-term, high-interest loans that must be repaid by the borrower’s next paycheck. Because the loan is due so quickly, most borrowers can’t afford to repay it all at once. This often leads them to take out another payday loan to cover the first, starting a dangerous cycle of debt.

If It Sounds Too Good to Be True, It Probably Is

Some payday lenders advertise their services as a way to “build credit” or “consolidate debt,” but there’s often a hidden cost. These loans may come with sky-high interest rates or fees that aren’t immediately obvious. While the fees may seem small at first, they can add up quickly over time. Payday loans feature extremely high annual percentage rates (APRs) which can also result in trapping borrowers in long-term financial trouble.

Non-Disclosure of Interest Rates: A Major Red Flag

One of the clearest warning signs of a predatory lender is when they don’t clearly disclose the interest rate or upfront fees. By law, lenders must tell you exactly what you’ll be paying before you sign any loan agreement. If they don’t—or if the terms seem confusing—walk away. At Wayne Westland Federal Credit Union, we’re committed to transparency. Our lending team makes sure you understand every part of your loan—from interest rates and monthly payments to repayment terms—so you can borrow confidently and responsibly.

How Payday Loans Can Affect Your Credit

Defaulting on a payday loan can seriously damage your credit. Most payday lenders don’t report on-time payments to credit bureaus, so even if you repay the loan, it won’t help your credit score. However, if you miss a payment or the loan is sent to collections, that negative mark will be reported—and could affect your ability to get approved for future loans, credit cards, or even housing.

Do Your Homework

Before signing anything, do a quick search online to check the lender’s reputation. Resources like the Better Business Bureau (BBB) can show complaints and red flags. You can also visit the Michigan Department of Insurance and Financial Services for consumer alerts and more information about payday lenders in your area. A few minutes of research can save you from years of financial stress.

Better Alternatives to Payday Loans

If you’re facing a financial emergency, you have safer and more affordable options:

Borrow from Family or Friends

A small loan from someone you trust can often be interest-free and come with flexible terms.

Employer Paycheck Advances

Some employers offer paycheck advances to help employees cover short-term needs. Check with your HR or payroll department to see if this is available.

Credit Union Loans

Credit Unions like WWFCU are here to help members, not profit from them. We offer a variety of loan options that are fair, affordable, and can even help you build your credit.

What WWFCU Offers

InstaCash Loans

Our InstaCash loan is a fast, simple option based on your WWFCU account history—not your credit score. You can borrow set amounts with repayment terms of up to 18 months, The service is fully online, and the funds are deposited directly into your account. Our InstaCash loans can be accessed 24/7, even when our office isn’t open!

Personal Loans

Need help with a bigger or unexpected bill? A personal loan from WWFCU is based on your credit portfolio and offers flexible repayment terms, making it easier to manage your finances.

We’re More Than Just Loans

At WWFCU, we’re here for you—whether it’s opening a new account, applying for a loan, or planning your financial future. We also offer access to certified financial counselors who can help you: pay down debt, create a monthly budget, and start saving for your future. Give us a call today to schedule an appointment with one of our financial counselors or member service representatives today. We’re here to help you make smart financial choices—now and for the road ahead.

Sincerely,

Your Financial Gurus

Auto Loan Credit Cards Loans Youth Accounts

Just Graduated? Here’s How to Build Credit and Set Yourself Up for Success

June 13, 2025 Tammy Richardson

Hey grads – congrats! 🎉🎓 You did it! High school is officially in the rearview mirror, and your future is wide open. Whether you’re headed to college, starting a job, or still figuring things out, there’s one smart move you can make right now that will pay off big-time down the road: start building your credit.

Why Credit Matters (Even If You’re Just 18)
We know that “establishing credit” might sound like something for the future you but trust us — building it early can give you a major advantage. A solid credit history can open doors to lower interest rates, better loan options, and easier approval for big milestones like:

🏠 Buying your first home
🚗 Financing a car
💳 Getting approved for a credit card
📱 Even setting up your phone plan or renting an apartment

Good credit = more financial freedom + more money in your pocket.

What You Do Now Matters
Every smart money move you make today helps your future self. Just like saving for a goal, building credit is about consistency. Paying on time, keeping your credit card balances low, and having a mix of credit types will boost your score over time — and fast!

Let WWFCU Help You Get Started
We’ve got your back. At WWFCU, we have several tools specifically designed to help young members like you kick off your credit journey the right way:

🔹 Credit Cards

Low interest rates and rewards program featuring cash back and other bonuses
A great way to start building credit if used wisely (Pro Tip: pay it off in full each month!)

🔹 Personal Loans

Borrow small amounts for manageable monthly payments

🔹 Revolving Loans

Flexible access to funds, while building credit history

🔹 Auto Loans

Finance your first ride with competitive rates and guidance from our friendly team

Bonus: Youth Loans with a Parent or Guardian

Not 18 yet? No problem. We offer Youth Lending options that allow a parent or guardian to help you get started even earlier. With joint loans or co-signed accounts, you can start building credit history before you turn 18 — a big head start that most people don’t get!

Tips for Building Credit Fast (and Smart!)
✅ Always make your payments on time — even one late payment can hurt your score
✅ Keep your credit balances low (under 30% of your limit is a good rule)
✅ Mix it up — having different types of credit (like a card and a loan) helps
✅ Don’t open too many accounts at once — slow and steady wins the race

You’re in Control of Your Financial Future
Starting your credit journey now is one of the most powerful steps you can take to set yourself up for success. The best part? You don’t have to do it alone. At WWFCU, we’re here to guide you every step of the way.
Stop by our branch, give us a call, or visit our website to learn more about Youth Lending and how to get started. If you are a parent looking to get your child started on the right financial path, but they aren’t ready for lending yet, we have various youth account promotions as well!

Let’s build your future — one smart decision at a time.

Sincerely,
Your Financial Gurus

Fraud Protection Tips

Be Advised: Spoofing Alert

May 22, 2025 Tammy Richardson

WWFCU has been notified that our phone number has been spoofed.

Please remember, WWFCU will never call you asking for sensitive account information. If you get a call that seems suspicious, hang up immediately and call us back.

Stay vigilant,

Stay safe!

Home Loans Loans

HOME BUYING 101

May 15, 2025 Tammy Richardson

Buying a home is one of life’s most exciting and significant milestones, but it can also be a time of stress and feeling overwhelmed without the proper guidance. Starting with saving for a down payment, navigating all the different mortgage options, then finally searching for your dream house; the process is full of decisions requiring careful consideration and planning. Whether you’re a first-time buyer or looking to upgrade, understanding the ins and outs of home buying is essential to making informed decisions and reaching your goals. Your financial gurus will break down the key steps, share practical tips, and explore how to make your path to homeownership as smooth as possible. Let’s get started!

Down Payments

Saving for a down payment on a home is one of the most significant steps on the path to homeownership. To start, it’s essential to determine how much you’ll need…typically this can range from 3% to 20% of the home’s purchase price, depending on the type of mortgage you choose. Building a budget is so important when setting aside money for a down payment. By analyzing your monthly income and expenses, you can identify areas where you can potentially cut back. We also suggest setting up a dedicated savings account to better track your progress. Automated transfers into this account are a great tool that can make saving feel effortless and ensure consistency.

It’s also helpful to explore strategies to accelerate your savings. This might include picking up a side hustle, redirecting windfalls like tax refunds or bonuses, or cutting nonessential spending. Additionally, inquire whether you may qualify for assistance programs, such as first-time homebuyer grants which can help ease the financial burden. With discipline, careful planning, and a clear goal in mind, you’ll be well on your way to building a foundation for your future home.

FHA Mortgages vs Conventional Loans

When it comes to financing your home, choosing the right mortgage is critical. Two popular options are FHA mortgages and conventional loans, each with their own advantages.

FHA Mortgages

Backed by the Federal Housing Administration, FHA loans are designed to make home ownership accessible to more people. They typically require lower credit scores and smaller down payments. FHA loans are ideal for first time buyers or those with “less than perfect” credit. However, they come with mandatory mortgage insurance premiums, which can increase the overall cost of the loan.

Conventional Loans

Conventional loans on the other hand, are not government backed and often have more strict credit score requirements (usually 620 or higher). They offer a little more flexibility and if you can make a larger down payment (20% or more), you can avoid private mortgage insurance…. saving you money in the long term. Conventional loans are great choices for people with strong credit and stable finances. If your credit needs a little work, don’t panic! The WWFCU financial gurus can review your credit report to find ways to better your credit score.

Mortgage Center

Wayne Westland Federal Credit Union has a longstanding partnership with Mortgage Center (NMLS #282701), who only work with credit union members, to provide tailored mortgage solutions. This collaboration ensures access to competitive rates and expert guidance, making homeownership more accessible. Whether you’re looking to purchase a new home, build one, or refinance an existing home, WWFCU and Mortgage Center can help. Apply online or call 800-353-4449 to speak with a mortgage expert.

Buying a home is a journey…one filled with excitement, planning, and maybe just a little bit of stress. But with the right guidance and a plan, you’ll be unlocking the front door to your dream home in no time. So, whether you’re budgeting, comparing loan options, or just daydreaming about backyard barbecues, remember that every step brings you closer to home. Happy house hunting!

Sincerely,

Your Financial Gurus

Credit Unions

Join Our Team – WWFCU is Hiring

April 30, 2025 Tammy Richardson

Apply Now

Credit Unions Taxes

Don’t Tax My Credit Union: The Fight to Protect Your Financial Future

April 16, 2025 Tammy Richardson

Earlier this month, our CEO Joleen Bowman, alongside two other team members, attended the 2025 Governmental Affairs Conference for Credit Unions in Washington, D.C. While there, they gathered valuable insights and served as advocates in the ongoing effort to preserve the not-for-profit tax status of credit unions. But what does this mean for you, and why is it so important? In this post, we’ll break down the “Don’t Tax My Credit Union” movement, the current Congressional tax debate, and how it affects your financial well-being.

The Congressional Tax Debate
Did you know that more than 140 million Americans are members of credit unions? That’s approximately 43% of the U.S. population, and the number continues to grow. In Michigan alone, over 6 million members benefit from the services of credit unions.

Unlike for-profit banks, credit unions operate as not-for-profit financial institutions, putting people—our members—first. This core difference is what makes credit unions so impactful in our communities. Nearly 90 years ago, Congress recognized the value of credit unions and granted them a federal tax exemption to help us continue offering competitive benefits to our members. This exemption enables us to provide lower interest rates, higher dividend rates, financial counseling, and more—tools that help you achieve your financial goals.

Despite credit unions’ popularity with 43% of Americans, we hold just 8.8% of the nation’s total financial assets. The remaining 91.2% are controlled by for-profit banks that prioritize shareholder returns over the interests of the communities they serve. Now, banks are lobbying Congress to remove our tax exemption, hoping to eliminate the competition and increase their own profits. This would not only hurt credit unions, but it would also be a direct burden on you, the consumer.

What’s at Risk?
If Congress decides to reduce or remove the tax exemption for credit unions, the impact could be significant. Not only could this jeopardize the 1.2 million jobs across the country supported by credit unions—including 19,000 jobs in Michigan alone—but it could also harm your financial security.

Here’s what could be at stake:

Higher interest rates on loans, refinances, and credit cards
Lower dividend rates on savings accounts, certificates, and money market accounts
Increased account fees for services
Less community support through grants, scholarships, and financial literacy initiatives

What You Can Do
Your voice matters, and it’s time to make it heard. We encourage you to take action by reaching out to your U.S. Representatives and Senators to express your support for the continued protection of credit unions. Visit www.donttaxmycreditunion.org, click on the “Take Action” button, and join the movement.

Thank you for choosing Wayne Westland Federal Credit Union as your trusted financial partner for the past 71 years. We look forward to continuing to serve you in the years ahead and ensuring that your financial journey remains secure.

Author: Tammy Richardson

What Is Predatory Payday Lending—and How to Avoid Becoming a Victim