Banking http://www.wisebread.com/taxonomy/term/800/all en-US 4 Signs It's Time to Find a New Savings Account http://www.wisebread.com/4-signs-its-time-to-find-a-new-savings-account <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-signs-its-time-to-find-a-new-savings-account" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/the_monthly_finances.jpg" alt="The monthly finances" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're putting any money into a savings account, congratulations: You're ahead of most U.S. adults. A survey published in 2016 by GOBankingRates found that 69 percent of American adults had less than $1,000 in their savings accounts.</p> <p>But just because you're saving money doesn't mean that you're putting it in the best savings account. And sometimes, there are signs that you should move your dollars to a new account. (See also: <a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you?ref=seealso" target="_blank">The Types of Savings Accounts: Which Is Right For You?</a>)</p> <h2>Your bank is charging you fees</h2> <p>Because banks don't pay you much interest on savings accounts, they shouldn't charge you any fees, either. Still, there are plenty of savings accounts that do come with fees.</p> <p>The most common is the maintenance fee, usually ranging from $5 to $35 a month. Most banks will waive this fee if you keep a minimum amount of money in your savings account at all times. This minimum can range from $100 to more than $1,000, depending on your bank.</p> <p>Other banks limit the number of free transfers or withdrawals from a savings account to a certain number every month; usually about six. If you go past that number, you'll be hit with a fee for every additional transfer or withdrawal you make. That fee could be as much as $10 for each of these additional moves.</p> <p>If your balance doesn't get too low and you don't plan on making many withdrawals each month, you might never be hit with these fees. But why take the chance? There are plenty of savings accounts that come with no fees. Search for one of those instead. (See also: <a href="http://www.wisebread.com/are-you-paying-these-6-unfair-banking-fees?ref-seealso" target="_blank">Are You Paying These 6 Unfair Banking Fees?</a>)</p> <h2>You're not making enough in interest</h2> <p>You won't get rich off your savings account. Banks are stingy when it comes to earning interest, often offering as little as 0.06 percent or less. Don't expect to grow your savings much with such a paltry rate.</p> <p>But there are some banks that pay higher rates with their savings accounts, some in the range of 1 percent. Again, an interest rate of 1 percent won't make you a fortune. But if you can find a savings account that pays higher interest while not charging you any fees, why not take it? (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=seealso" target="_blank">5 Best Online Savings Accounts</a>)</p> <h2>The online banking options are too limited</h2> <p>In addition to low fees and higher interest rates, you should also be hunting for a savings account that is convenient. This means one that offers a robust online banking platform. You want to be able to log onto your account from your laptop, phone, or tablet and quickly transfer money from a checking account into your savings account. You'll want the option of mobile deposit, too, in which you can snap a photo of a check with your phone to deposit it in your savings account.</p> <p>What you don't want is to have to travel to your bank every time you want to make a deposit in your savings account. That's too much work, and now that online banking is so common, unnecessary. (See also: <a href="http://www.wisebread.com/4-things-to-consider-before-you-open-an-online-savings-account?ref=seealso" target="_blank">4 Things to Consider Before You Open an Online Savings Account</a>)</p> <h2>Your bank is closing its most convenient locations</h2> <p>Yes, online banking is easy and simple. But there might still be times when you actually want to visit your bank in person. If your bank is shedding branches, and the branches that it's closing are those closest to you, it might be time to consider moving your dollars to a new savings account.</p> <p>Because savings accounts generate so little financial reward, it's important that they also cause you as little inconvenience as possible. If you have to drive miles to get to your bank's nearest branch, it might be time to hunt for a replacement bank that's just a short walk or drive from your home. (See also: <a href="http://www.wisebread.com/8-ways-your-savings-account-may-be-costing-you?ref=seealso" target="_blank">8 Ways Your Savings Account May Be Costing You</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-signs-its-time-to-find-a-new-savings-account&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Signs%2520Its%2520Time%2520to%2520Find%2520a%2520New%2520Savings%2520Account.jpg&amp;description=4%20Signs%20Its%20Time%20to%20Find%20a%20New%20Savings%20Account"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Signs%20Its%20Time%20to%20Find%20a%20New%20Savings%20Account.jpg" alt="4 Signs It's Time to Find a New Savings Account" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-signs-its-time-to-find-a-new-savings-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-earn-a-good-interest-rate-in-a-low-rate-environment">How to Earn a Good Interest Rate in a Low-Rate Environment</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-dirty-secrets-of-credit-cards">The Dirty Secrets of Credit Cards</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Hidden fees interest rates maintenance fees mobile banking savings accounts Fri, 20 Oct 2017 09:00:06 +0000 Dan Rafter 2038886 at http://www.wisebread.com 10 Things You Need to Know Before Taking Out a Personal Loan http://www.wisebread.com/10-things-you-need-to-know-before-taking-out-a-personal-loan <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-things-you-need-to-know-before-taking-out-a-personal-loan" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/hand_giving_and_hand_receiving_money.jpg" alt="Hand giving and hand receiving money" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I recently called my bank to ask about fees for using my debit card on an upcoming international trip. I laughed when the banker followed up by asking, &quot;Are you interested in taking out a personal loan for spending money on your vacation?&quot;</p> <p>There are plenty of good reasons to take out a personal loan, but going on vacation isn't one of them. A personal loan is, in essence, an unsecured loan that you get on the basis of your credit and income &mdash; unlike a mortgage loan or home equity line of credit, which uses your home as collateral. Personal loans have advantages and disadvantages compared to secured loans, so whether you go for one of these when you're in need of cash depends on your individual situation.</p> <p>Here's what you should consider before getting a personal loan.</p> <h2>1. The interest rate may be higher than you expect</h2> <p>When you hear about interest rates in the media, they're often talking about the 30-year fixed rate for a standard mortgage, which has been around 4 percent or lower for a long time now. But a personal loan's interest rate will probably be at least twice that. The reason for the difference: When you refinance your home or take out a home equity line of credit, you're promising to relinquish your home if you can't pay back the debt. That's a bigger risk for you, and less of a risk for the bank, compared to a personal loan. In return, banks give you a low interest rate on secured loans. (See also: <a href="http://www.wisebread.com/the-different-types-of-loans-a-primer?ref=seealso" target="_blank">The Different Types of Loans: A Primer</a>)</p> <h2>2. Your credit score matters more for personal loans</h2> <p>With no collateral, all the lender has to go on is your personal creditworthiness. You can expect the available interest rates to increase steeply if your credit is average or poor, going up as high as 36 percent APR.</p> <h2>3. A personal loan is not a long-term solution</h2> <p>While the typical mortgage is paid off over decades, personal loan terms are typically limited to seven years or less. This can be a good thing, because you should never borrow money for longer than you really need to. But it also means that if you are trying to borrow a lot of money, like for a major home remodel, the payments might be too high for you to keep up with on a personal loan.</p> <h2>4. Banks aren't the only option</h2> <p>As nonprofits, credit unions often offer lower rates and fees than banks for the same personal loan products. Then there are the crop of new &quot;marketplace lenders,&quot; such as SoFi and Prosper, which promise easy, quick online loan approval and good rates, especially to folks with the best credit. This nascent industry has had some bumps in the road, but it's still an avenue worth looking into. (See also: <a href="http://www.wisebread.com/best-lenders-for-personal-loans?ref=seealso" target="_blank">Best Lenders for Personal Loans</a>)</p> <h2>5. Personal loans can be a lifesaver when you need cash quickly</h2> <p>When an urgent financial need rears its head &mdash; a leaky roof, an emergency medical bill, or, heaven forbid, an unexpected funeral &mdash; many people turn to credit cards or payday lenders for help. These lenders can be punishingly expensive, but they may seem attractive because in such situations you just don't have time to sit down and apply for a home equity line of credit or look at refinancing your mortgage.</p> <p>You can get the funds from a personal loan within two weeks of applying online, making it just a little slower than the alternatives and potentially much more affordable. (See also: <a href="http://www.wisebread.com/5-times-personal-loans-may-be-better-than-credit-cards?ref=seealso" target="_blank">5 Times Personal Loans May Be Better Than Credit Cards</a>)</p> <h2>6. Personal loans can save you a lot on debt you already have</h2> <p>One of the most common uses for a personal loan is to <a href="http://www.wisebread.com/5-tricks-to-consolidating-your-debt-and-saving-money?ref=iternal" target="_blank">consolidate existing debt</a>, like credit card balances, student loans, and car loans. You may be able to get a lower interest rate than you were paying on your other debts, and you also have the organizational benefit of having only one bill to pay each month. However, when transferring one kind of loan to another, you should ...</p> <h2>7. &hellip; Be aware of what you may be giving up</h2> <p>Some marketplace lenders heavily market the idea of refinancing student loan debt into personal loans. But before you make a decision like that, you should compare your old loan and new loan carefully, the Consumer Financial Protection Bureau warned in a 2016 release.</p> <p>&quot;[I]n some cases consumers could lose important loan-specific protections by refinancing an existing debt. Specifically, consumers should know that they may sign away certain federal benefits, such as income-driven repayment for federal student loans or service member benefits,&quot; the CFPB said. (See also: <a href="http://www.wisebread.com/8-valuable-rights-you-might-lose-when-you-refinance-student-loans?ref=seealso" target="_blank">8 Valuable Rights You Might Lose When You Refinance Student Loans</a>)</p> <h2>8. You might be better off with a different type of loan</h2> <p>If you're trying to get a better rate on credit card debt while you pay it off, before you commit to a personal loan, shop around to see what else is out there. You may be able to transfer your balance to a <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?ref=internal" target="_blank">card with a promotional 0 percent interest rate</a>. Another potentially better deal could be <a href="http://www.wisebread.com/this-is-when-you-should-borrow-from-your-retirement-account?ref=internal" target="_blank">taking money out of your retirement account</a> for a short time, especially if you have a Roth IRA. Just make sure to pay back whatever you borrow.</p> <h2>9. Watch out for fees and extras</h2> <p>Some lenders will try to throw in an insurance policy or other extra expenses as you close the loan. You may or may not want an insurance policy to make sure that your survivors aren't stuck with your loan if tragedy strikes, but that's a separate financial decision that you should undertake with research, not just because you're under the impression that it's required for your loan. (If the lender says it is, walk away.)</p> <p>Also, ask the lender if they use the &quot;pre-compute&quot; method to calculate interest, or if they have prepayment penalties &mdash; you should avoid these, because both will punish you if you're able to pay the loan back ahead of schedule.</p> <h2>10. Never get a personal loan to fund certain expenses</h2> <p>One of the nice things about a personal loan is that unlike a car loan or mortgage, you don't have to justify your purchase to the lender. However, there are things you should know better than to borrow for &mdash; whether it's with a credit card, a home equity line of credit, or a personal loan.</p> <p>Don't take out a personal loan to buy an engagement ring; why would you want to start out your relationship with a pile of debt? While some lenders may advertise a personal loan as a &quot;travel loan,&quot; that's another bad idea; once the vacation is over, you have nothing that you could sell to pay off the loan if you need to. Do I need to tell you that you shouldn't take out a personal loan for gambling money? I didn't think so. (See also: <a href="http://www.wisebread.com/never-borrow-money-for-these-5-buys?ref=seealso" target="_blank">Never Borrow Money for These 5 Buys</a>)</p> <p>A more complex question is whether it's OK to use a personal loan for a down payment on a home. The whole point of requiring a buyer to make a down payment is to show that they can afford the home and to help them feel invested in the purchase. So your mortgage lender may not like it if you try to fund the down payment with a personal loan. At the very least, with this method, you'll need to get the loan several months in advance of the purchase. But even then, proceed with caution; adding debt in the form of a personal loan could affect your chances of getting approved for the mortgage at all. (See also: <a href="http://www.wisebread.com/5-money-moves-that-will-ruin-your-mortgage-application?ref=seealso" target="_blank">5 Money Moves That Will Ruin Your Mortgage Application</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-things-you-need-to-know-before-taking-out-a-personal-loan&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Things%2520You%2520Need%2520to%2520Know%2520Before%2520Taking%2520Out%2520a%2520Personal%2520Loan.jpg&amp;description=10%20Things%20You%20Need%20to%20Know%20Before%20Taking%20Out%20a%20Personal%20Loan"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20Things%20You%20Need%20to%20Know%20Before%20Taking%20Out%20a%20Personal%20Loan.jpg" alt="10 Things You Need to Know Before Taking Out a Personal Loan" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/10-things-you-need-to-know-before-taking-out-a-personal-loan">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-easy-ways-to-improve-your-credit-score-during-the-holidays">3 Easy Ways to Improve Your Credit Score During the Holidays</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-surprising-things-lenders-check-besides-your-credit-score">4 Surprising Things Lenders Check Besides Your Credit Score</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-a-surprise-credit-limit-increase-can-harm-you">How a Surprise Credit Limit Increase Can Harm You</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-credit-repair-mistakes-that-will-cost-you">8 Credit Repair Mistakes That Will Cost You</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-buy-a-car-with-a-credit-card">Should You Buy a Car With a Credit Card?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Banking APR balance transfer credit score fees interest rates lenders personal loans unsecured loan Fri, 20 Oct 2017 08:30:10 +0000 Carrie Kirby 2037745 at http://www.wisebread.com 9 Common Mistakes You're Making With Your Checking Account http://www.wisebread.com/9-common-mistakes-youre-making-with-your-checking-account <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-common-mistakes-youre-making-with-your-checking-account" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_0.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Most of us think about our checking account in only one way: Is there enough money in it? While that's certainly the most important piece of the puzzle, there are plenty of other things to consider to ensure that you're getting all the bangs for your bucks. Beware of these common, costly mistakes you might be making with your checking account.</p> <h2>1. Maintaining a lower balance than you need to cover your expenses</h2> <p>Your top concern regarding your checking account should always be that you have enough money in there to cover your expenses &mdash; even more so if you subscribe to direct deposit and/or autopay services. By engaging in the latter, you're essentially putting machines in charge of your finances, which, while convenient, are not always accurate. If you don't have enough money to cover your bills, you know what happens &mdash; you dip into the negative and you're slapped with insufficient funds or overdraft charges, further dragging you into the red. This oversight also can affect your credit score if you miss the payment for 30 days or more. (See also: <a href="http://www.wisebread.com/the-pros-and-cons-of-autopay?ref=seealso" target="_blank">The Pros and Cons of Autopay</a>)</p> <p>The best you can do for yourself is to commit to keeping your bills covered by your checking account and staying on top of your auto-deposit payments to maintain a positive and accurate balance.</p> <h2>2. Keeping more money than you need in your checking account</h2> <p>Keeping enough money in your checking account to cover your expenses should be your main focus, but you also may be doing yourself a disservice by keeping too much money in that account. It's a balancing act, for sure &mdash; but if your surplus can benefit you someplace other than your checking account, you need to move it.</p> <p>Says Michael Banks, founder of personal finance blog The Fortunate Investor, &quot;Money that sits in a checking account accumulates very little in interest. [Some banks], however, offer investor checking accounts that allow you to invest your checking account funds to maximize growth. You don't need to invest all of your money, and it's easy to keep two accounts and transfer as much into your investing account as you feel comfortable with; but the more you invest the more you stand to gain in the long run.&quot;</p> <p>If the idea of an &quot;investment&quot; account gives you anxiety, then consider <a href="http://www.wisebread.com/choosing-a-retirement-account-whats-available-and-what-s-best-for-you" target="_blank">opening a Roth IRA</a> or at least finding a <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=internal" target="_blank">high-yield savings account</a> instead.</p> <h2>3. Limiting your access to in-network ATMs</h2> <p>When I first moved to Manhattan, there were only a handful of my bank's in-network ATMs on the entire island, none of which were near my apartment. I was never close enough to one when I needed cash, so the fees added up quickly (some out-of-network ATMs charged up to $5 per transaction). This went on for a few months before I wised up, did my research on the most abundant ATM locations in New York City, and switched banks. If you're banking someplace and the ATM locations are prohibitive to you, consider banking elsewhere; you could save a bundle in time and fees. (See also: <a href="http://www.wisebread.com/8-ways-to-make-sure-you-never-pay-an-atm-fee?ref=seealso" target="_blank">8 Ways to Make Sure You Never Pay an ATM Fee</a>)</p> <h2>4. Paying fees just to have a checking account at a particular institution</h2> <p>Some banks charge a monthly checking account fee if you don't keep a minimum balance in it &mdash; say $1,500, for example. If you don't like keeping excess funds in your checking account, it does not make sense to pay a premium to bank with an institution that charges you for moving money around. Another option you have is opening a free checking account at a credit union.</p> <p>According to a 2016 Bankrate survey, 76 percent of credit unions offer free checking accounts. This is good news in a time when free checking at banks continues to decline almost every year. The survey also noted that an additional 22 percent of credit unions are willing to waive their monthly fee for meeting certain requirements such as signing up for direct deposit or paperless statements. (See also: <a href="http://www.wisebread.com/are-you-paying-these-6-unfair-banking-fees?Ref=seealso" target="_blank">Are You Paying These 6 Unfair Banking Fees?</a>)</p> <h2>5. Spending without checking your balance</h2> <p>Do you know exactly how much money is in your checking account right now? What about a close estimate? If the answer is no, you're not staying on top of your money well enough &mdash; and you definitely shouldn't be pulling out your debit card when your balance is in flux. Before you make a purchase that you even think could compromise your balance, log into your account (easy to do with your mobile app; I log into mine with a fingerprint), and manage your money wisely.</p> <h2>6. Ignoring your transaction history</h2> <p>You need to stay on top of what payments are being deducted from your checking account, even if they haven't actually been deducted yet. Continuing to spend when payments are pending could spell disaster.</p> <p>&quot;Check your account every couple of days to ensure transactions have been posted,&quot; advises Natasha Rachel Smith, personal finance expert at TopCashback. &quot;Be aware of holds on your account as a result of a retailer or merchant requesting authorization of a purchase. For example, gas stations and hotels could put a hold on your account until the actual transaction clears, so be mindful of these transactions when viewing your available funds. I also recommend checking on your transactions for fraudulent charges and reporting them as soon as possible.&quot;</p> <h2>7. Not subscribing to overdraft protection</h2> <p>Banks typically charge a $35 overdraft fee, and it's important to keep that in mind when you know your checking account is getting low. You also should fortify your account with overdraft protection if it makes sense for you. (See also: <a href="http://www.wisebread.com/9-ways-to-avoid-overdraft-charges?ref=seealso" target="_blank">9 Ways to Avoid Overdraft Charges</a>)</p> <p>&quot;Although opting out of overdraft protection can be ideal to not get hit with overdraft fees on debit card purchases, your bank can still charge you non-sufficient funds fee for checks and bill payments that can be comparable to an overdraft fee,&quot; Smith explains. &quot;It is ideal to opt out of overdraft protection when you have a savings account with the same bank. Typically, if you have both, the overdraft fee is less. If you choose to opt in to overdraft protection, always be cautious so you avoid the charge.&quot;</p> <h2>8. Assuming that every debit charge is legit</h2> <p>Once a week I go through my checking accounts to make sure all the debit charges are legit. There have been a few occasions where I've noticed an error &mdash; a fraudulent charge, a subscription I canceled, an incorrect amount charged for an expense that I authorized, or a price hike in my existing memberships. If I didn't do my due diligence and address these errors, nobody else would have. Check in on your money to make sure the numbers are correct.</p> <h2>9. Linking to online retailers you know nothing about</h2> <p>It's becoming more and more common &mdash; especially around the holidays &mdash; for shoppers' financial information to be compromised by a security breach. I'm not going to tell you to stop shopping online altogether, because that's just impractical, but I will urge you to be more responsible in where you spend your money and save your banking information.</p> <p>First, make sure the website is secure. The &quot;https://&quot; distinction designates a secure site, opposed to the more common &quot;http://&quot; protocol identifier for sites that don't require any user information.</p> <p>Second, use common sense. While it's not impossible for well-known retailers with an arsenal of security resources to get hacked, it's much more likely to happen to the small-potatoes shops that can't afford top notch security. Of course, these smaller retailers don't have as much to offer hackers in the way of identity theft. But in any case, use your best judgment when providing your financial info online to prevent being a victim. (See also: <a href="http://www.wisebread.com/5-dangers-of-mobile-banking-and-how-to-avoid-them?ref=seealso" target="_blank">5 Dangers of Mobile Banking &mdash; And How to Avoid Them</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-common-mistakes-youre-making-with-your-checking-account&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Common%2520Mistakes%2520Youre%2520Making%2520With%2520Your%2520Checking%2520Account.jpg&amp;description=9%20Common%20Mistakes%20Youre%20Making%20With%20Your%20Checking%20Account"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Common%20Mistakes%20Youre%20Making%20With%20Your%20Checking%20Account.jpg" alt="9 Common Mistakes You're Making With Your Checking Account" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/9-common-mistakes-youre-making-with-your-checking-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-reasons-your-card-got-declined-and-how-to-fix-it">7 Reasons Your Card Got Declined (And How to Fix It)</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/avoid-bank-fees">Avoid Bank Fees</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-things-you-need-to-know-before-taking-out-a-personal-loan">10 Things You Need to Know Before Taking Out a Personal Loan</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-credit-repair-mistakes-that-will-cost-you">8 Credit Repair Mistakes That Will Cost You</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking atms autopay checking accounts debit fees insufficient funds Mistakes overdraft transaction history transfers Tue, 17 Oct 2017 09:00:06 +0000 Mikey Rox 2035900 at http://www.wisebread.com Should You Take Out a Loan Backed by Your Investments? http://www.wisebread.com/should-you-take-out-a-loan-backed-by-your-investments <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/should-you-take-out-a-loan-backed-by-your-investments" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/hands_giving_and_receiving_money_usd.jpg" alt="Hands giving and receiving money USD" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you have a taxable investment account, you may have heard from your bank or brokerage lately about the opportunity to <em>borrow </em>against your stock holdings. There are many attractive aspects to securities-based loans, which have gained popularity thanks to marketing campaigns. But there are also reasons to be cautious about this kind of borrowing.</p> <p>Financial firms tout these loans as a convenient and affordable way to access quick cash for anything from a kitchen remodel to bridge financing for a home purchase. What they might not mention is that they have a strong incentive to get you to take out the loans; lending is seen as a good source of reliable income for brokerage firms looking to reduce their reliance on commissions.</p> <p>Securities-based loans (also known in the industry as non-purpose loans and securities-based lines of credit or SBLOCs) have risks, which led the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to issue a consumer warning about them.</p> <h2>The benefits of securities-based loans</h2> <p>It's not as if your broker is lying if they tell you that taking out a securities-based loan can be a good way to get liquidity when you need it. There are real benefits.</p> <h3>1. Low rates</h3> <p>Brokerage firms have been issuing securities-based loans at rates lower than what you'd pay on a personal loan or credit card balance, and competitive with or better than what you'd pay for a home equity line of credit.</p> <h3>2. Lenient application process</h3> <p>In a 2015 investor alert, the Securities and Exchange Commission noted that &quot;some SBLOC lenders might not run a credit check or conduct an analysis of your liabilities before setting and extending the credit line.&quot; Since the lender has your stock as collateral, they don't need to worry too much about whether you can pay back the loan.</p> <h3>3. Fast turnaround</h3> <p>Funds are typically available less than a week after applying. This speed can be clutch if, say, you are in a competitive bidding situation for a house and want to have a down payment and earnest money ready at the drop of a hat.</p> <h3>4. Keeping your stock (and avoiding taxes)</h3> <p>Of course, if you have stock and you need cash, you could simply sell the stock to pay for what you want to buy. One reason some investors prefer to borrow against their portfolio value is the potential tax advantage: By keeping the stock, they avoid registering a capital gain, which they'd have to pay tax on that year. This benefit may be particularly valued by retired people who hope to hold onto their stock for life and pass it on to their heirs, since the cost basis will be stepped up to the market value at the time of death. This means that any new capital gains will be based on the price of the stocks when they were transferred to an heir, and not the price when they were first purchased.</p> <p>Another situation when avoiding selling stock might really come in handy: If you bought the stock within the past year and want to wait a year before selling it to qualify for the long-term capital gains rate, which is lower than the short-term rate. (The short-term rate is the exact same rate as your ordinary income.)</p> <p>Finally, keeping your stock means retaining the benefits of ownership, including any dividends, voting rights, and potential future gains.</p> <h2>The risks of securities-based loans</h2> <p>With all those pluses, why did the SEC and FINRA warn us about this kind of loan? Because they come with risks that may not be immediately apparent to the borrower.</p> <h3>1. The maintenance call</h3> <p>If you buy a house and the housing market crashes, you may end up owing more than the house is worth; but at least you can keep your home as long as you can make the payments. Not so with securities-based loans.</p> <p>&quot;SBLOCs are classified as <em>demand </em>loans, which means lenders may call the loan at any time,&quot; the SEC warns. Typically, this would happen if the market goes down and the value of the securities you're borrowing against decreases sharply; the lender would make what's known as a &quot;maintenance call,&quot; demanding that you pay all or part of the loan. If you can't, the lender will sell your stock at the current price. If this happens, you'd basically be forced to sell at the worst possible time.</p> <p>What are the odds of this happening? No one can see the future, but the current bull market is considered downright elderly at eight years old, leading many experts to predict a correction or recession sometime soonish. It would be foolish to expect the value of your portfolio to always rise and never fall.</p> <h3>2. Variable interest rates</h3> <p>As with any loan, read the fine print before signing on the dotted line. Many securities-based loans charge variable interest rates, meaning that you will never know how much your interest expenses will be each month.</p> <h3>3. Unexpected tax bill</h3> <p>If you bought a stock at a low price, borrow against it at a higher price, and it dips to a price between those two prices, it could spell tax trouble. If the lender forces a sale to pay the loan, you'll owe capital gains tax on the difference between your purchase price and the sale price &mdash; which could really sting if the sale proceeds went to pay off the loan, leaving you with no cash.</p> <h3>4. Lost freedom</h3> <p>The SEC warns that you will likely have to pay off any securities-backed loans before moving your assets to another brokerage firm &mdash; which could be another reason that brokerages are pushing these loans.</p> <h2>So should you get a securities-based loan?</h2> <p>While your broker's suggestion that you get a securities-based loan might be laden with self-interest, that doesn't mean you have to say no. Weigh the pros and cons before deciding, and consider taking these measures to safeguard the process if you go ahead.</p> <h3>1. Borrow less than you qualify for</h3> <p>Lenders are offering clients loans worth as much as 95 percent of an investment portfolio. The lower the percentage of leverage, the safer you are against the risks of securities-based borrowing.</p> <h3>2. Borrow only against a diverse portfolio</h3> <p>If you only own stocks in the energy sector, it won't take an overall downturn to cause a securities-based loan disaster; a sharp downturn to that one sector could do it. Investing in diverse sectors is always a good idea, but even more so if you're borrowing against your holdings.</p> <h3>3. Have a maintenance call plan</h3> <p>If you can put up the additional funds the lender demands in a maintenance call, you won't be forced to liquidate your shares at an inopportune time. So figure out in advance other ways to meet that maintenance call, whether it's tapping an emergency fund, borrowing from family, or liquidating other assets.</p> <h3>4. Don't borrow to pay for something without resale value</h3> <p>The marketing materials brokerages use to encourage securities-based loans mention vacations. But if your loan gets called in, you can't sell your vacation memories to raise the necessary cash.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fshould-you-take-out-a-loan-backed-by-your-investments&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FShould%2520You%2520Take%2520Out%2520a%2520Loan%2520Backed%2520by%2520Your%2520Investments-.jpg&amp;description=Should%20You%20Take%20Out%20a%20Loan%20Backed%20by%20Your%20Investments%3F"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Should%20You%20Take%20Out%20a%20Loan%20Backed%20by%20Your%20Investments-.jpg" alt="Should You Take Out a Loan Backed by Your Investments?" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/should-you-take-out-a-loan-backed-by-your-investments">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-8"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-investment-accounts-all-30-somethings-should-have">7 Investment Accounts All 30-Somethings Should Have</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-earn-a-good-interest-rate-in-a-low-rate-environment">How to Earn a Good Interest Rate in a Low-Rate Environment</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-three-interest-rates">The Three Interest Rates</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-countries-where-banks-pay-crazy-interest-rates">10 Countries Where Banks Pay Crazy Interest Rates</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-make-sure-you-dont-run-out-of-money-in-retirement">How to Make Sure You Don&#039;t Run Out of Money in Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Investment capital gains interest rates lending maintenance call sbloc securities based loans securities-based lines of credit stock holdings Thu, 12 Oct 2017 08:30:10 +0000 Carrie Kirby 2034471 at http://www.wisebread.com Credit Challenged? How Alternative Credit Data Can Help Those With Little or No Credit http://www.wisebread.com/credit-challenged-how-alternative-credit-data-can-help-those-with-little-or-no-credit <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/credit-challenged-how-alternative-credit-data-can-help-those-with-little-or-no-credit" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_woman_working_at_her_office.jpg" alt="Young Woman Working at her office" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you've got no credit file, or a very thin one, you know how hard it can be to get a credit card or loan. Without a credit record, you can't get a credit score, and lenders can't easily judge how much of a credit risk you are.</p> <p>Don't give up. Lenders are slowly beginning to consider other kinds of information when making credit decisions. That may help you get approved for credit, even without a traditional credit score. But it's important to also understand how this so-called alternative data is used, and the implications for your privacy.</p> <h2>What is alternative data?</h2> <p>Traditional credit data relies on information about how you've used credit or debt in the past. It is compiled by the three major credit bureaus: Equifax, Experian, and TransUnion. That data is then used by the major scoring companies, FICO and VantageScore, to build your credit scores. (See also: <a href="http://www.wisebread.com/how-to-read-a-credit-report?ref=seealso" target="_blank">How to Read a Credit Report</a>)</p> <p>Maybe you haven't had experience with credit, or you had a negative experience that doesn't tell the whole story of how you would behave now with a new loan. Alternative data providers look at how reliably you've paid rent, utility bills, or rent-to-own agreements. They dig up nonpayment information, too.</p> <p>For instance, LexisNexis Risk Solutions gathers publicly available documents that show your professional licenses, evidence of college attendance, ownership of assets such as a home or boat, felony convictions, and your address stability. &quot;Address stability is the concept that if you're living in the same address for a period of time, you're more stable than if you're bouncing around four times a year,&quot; says Ankush Tewari, senior director of credit risk assessment at LexisNexis Risk Solutions. &quot;Multiple client studies have shown that people who move frequently are riskier than people who have a stable address history.&quot;</p> <p>LexisNexis Risk Solutions says the data it collects all has some proven ability to predict creditworthiness. By adding this sort of data to regular credit bureau data, it can help score about 40 million consumers who don't have a regular credit score. The company has paired with FICO and credit bureau Equifax to create an alternative credit score called the FICO Score XD. It's only for people whose credit files are so thin they can't get a regular credit score, and it relies on payment data from a consumer's utility, phone, and other bills.</p> <p>According to FICO, the new score should allow lenders to score more than half of all previously unscorable applicants. It's found that more than a third of those people turn out to have a FICO Score XD of at least 620, the cutoff point many lenders use for even considering a credit application. That means more people should be getting approved for credit. The trouble is, the product is so new, FICO has not revealed how many lenders are using it.</p> <p>TransUnion has had a similar scoring model called CreditVision Link since 2015, which incorporates a trended look at traditional credit data (how you've performed over time) with non-credit-related data collected from consumers' banking accounts, payday lending histories, and property, deed, and tax records. TransUnion told The New York Times that about 100 companies &mdash; primarily auto lenders and online lenders, but also an increasing number of credit card issuers &mdash; are using or testing the score. They're usually able to approve about 20 percent more applicants than they could before.</p> <h2>How alternative data can help you</h2> <p>The driving force behind the use of alternative data is lenders' desire to reach new customers who are creditworthy but can't show it through traditional means. &quot;Lenders tell us, 'We don't need help declining more people. We need help growing our business but without increasing our credit risk,'&quot; says LexisNexis's Tewari.</p> <p>That should mean good news for consumers who have been responsible with their finances but who haven't had a chance to build credit or have stumbled along the way. Alternative data may help increase your chances of being approved for a loan or credit card. &quot;It allows consumers to show that, while they may not be in a position to get a mortgage or a car payment, or they have no desire to get a credit card, they are still taking care of everyday financial responsibilities,&quot; says Kim Cole, community engagement manager for Navicore Solutions, a nonprofit credit counseling agency in Manalapin, New Jersey.</p> <p>A new company called FS Card is using alternative data to offer a credit card called Build Card to people who would otherwise have been rejected for a credit card. Build Card's target market is consumers with credit scores of 620 or below, meaning their credit is considered subprime. In the past, the only kind of card these consumers probably would have been able to get is a secured card, which requires a deposit of several hundred dollars upfront.</p> <p>Build Card asks applicants to agree to let the company use alternative data to assess their risk. In addition to traditional credit data, Build Card looks at payday loan information to determine whether an applicant is creditworthy. &quot;We're looking for an inflection point that shows the consumer has changed and is able to take on regular credit,&quot; says Marla Blow, CEO of FS Card. Typically this means they've been able to close out a payday loan. &quot;We're looking at the top 15&ndash;20 percent of payday loan users,&quot; she says.</p> <p>If the applicant is approved, they'll be given a regular credit card &mdash; no security deposit required. Granted, there is a $53 upfront fee, APRs are 25&ndash;29 percent, and the initial credit limit is only $500. But it's a step up from a payday loan. And if you do well with the initial credit limit, you can eventually have it increased to $750.</p> <h2>Concerns about privacy and transparency</h2> <p>One of the biggest concerns with alternative data is that people don't know it's being collected and used. Not everyone wants their financial history and other information rounded up and made available to financial institutions. And, as with any organization that collects personal information, there is always the chance that a data breach could happen. It's one thing if information that was already publicly available is stolen, but it may be more worrisome if you've voluntarily shared payment information that then gets disclosed in a breach.</p> <p>Beyond privacy and security, there are concerns about transparency. If you don't know what information lenders might look at when they're making lending decisions, you can't shape your behavior appropriately. For instance, maybe if you knew that bank overdrafts not only cost you money, but could also cause a lender to frown on your credit card application someday, you would be even more careful about not overdrawing. That's why some consumer advocates say you should first be asked whether you want to opt in to the collection and use of this sort of data.</p> <p>Consumer groups also worry about the accessibility of information that's being collected. &quot;People need to have access to data collected about them,&quot; says Linda Sherry, director of national priorities at Consumer Action. &quot;They need to be able to verify that it's accurate and to put notes on it to say what's happened in their life to justify why these things are happening to them.&quot;</p> <p>You already have those rights when it comes to data on your traditional credit report. The Fair Credit Reporting Act (FCRA) gives you the right to access your credit reports and if you find an error, it says the credit bureau must investigate and so must the bank or credit card issuer who furnished the data. The FCRA also requires creditors and employers to notify you if they've rejected you based on information in your credit report. That way, you can check the information and dispute it if it's incorrect.</p> <p>LexisNexis says you also have those same rights with the alternative data it collects. If you are, say, turned down for a loan because you've got a lien or judgment, you should be notified of that and given the chance to dispute any inaccuracies in the reporting. &quot;Alternative data must be compliant with the FCRA, which requires consumers have access to data that's used in credit decisions,&quot; says Tewari, who adds that his company allows consumers unlimited free access to the data it has on file. You can request it at any time, and as many times as you like. &quot;They have the ability to review it and correct it if there's an error,&quot; he says.</p> <h2>What you can do</h2> <p>While data collectors and lenders are in the driver's seat when it comes to the use of alternative data, there are still some things you can do to build your credit.</p> <h3>1. Pay all of your bills on time</h3> <p>This is always important, but even more so in times when companies are collecting information about how you pay all kinds of bills. Keeping on top of payments could help you build credit that you'll need in the future. Avoid overdrafts on your checking account, too, as this is a costly behavior that could also mar your alternative credit profile.</p> <h3>2. Check your traditional credit report and dispute any errors</h3> <p>&quot;If someone has been denied by the big lenders, that's a wake-up call that they need to go into their credit report, figure out why they're being denied, clean up the credit report as much as they can, and get back on track with a good credit history,&quot; says Consumer Action's Sherry. &quot;That's the best way to show yourself as someone that lenders will trust.&quot;</p> <h3>3. Get a secured card</h3> <p>This is the traditional way to go, and it works. Save up $300, use it as a deposit on a secured credit card, get a $300 credit line, then only make a small purchase with it a few times a year. At the end of a year &mdash; maybe sooner &mdash; you should have built enough credit to get a regular credit card. (See also: <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=seealso" target="_blank">The Best Secured Credit Cards</a>)</p> <h3>4. Ask your lender to look at FICO Score XD</h3> <p>Since this scoring model is fairly new, you likely won't see any immediate results if you request a lender review it. Banks have to pay to get access to this scoring model. But eventually if lenders see enough demand from consumers, they will begin to adopt it. It certainly can't hurt to ask.</p> <h3>5. Consider providing your own alternative data</h3> <p>If you're applying for a loan, it may help to present letters of good standing from your landlord, utility providers, or other monthly services that you pay on time.</p> <h3>6. Don't worry &mdash; yet &mdash; about modifying your behavior to fit the FICO Score XD model</h3> <p>For instance, if you really need to change addresses for the second time in a year, don't hold back just because it might affect your alternative credit score. A whole host of factors goes into most lenders' credit decisions, so no one factor is given too much weight.</p> <h3>7. Monitor your alternative credit record</h3> <p>This is not as easy as monitoring your traditional credit record, but if you're interested you can find out who's collecting your financial details by consulting the Consumer Financial Protection Bureau's list of <a href="http://files.consumerfinance.gov/f/201604_cfpb_list-of-consumer-reporting-companies.pdf" target="_blank">42 consumer reporting companies</a>. You'll have to check with each company's website to find out how to get your free annual report.</p> <h3>8. Correct mistakes if they arise</h3> <p>If you get a note that you've been denied credit due to a piece of alternative data, ask who furnished the information, and make sure it's accurate. You have the same right to dispute errors in alternative data as you do with traditional information on your credit report.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fcredit-challenged-how-alternative-credit-data-can-help-those-with-little-or-no-credit&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FCredit%2520Challenged-%2520How%2520Alternative%2520Credit%2520Data%2520Can%2520Help%2520Those%2520With%2520Little%2520or%2520No%2520Credit%2520%25282%2529_0.jpg&amp;description=Credit%20Challenged%3F%20How%20Alternative%20Credit%20Data%20Can%20Help%20Those%20With%20Little%20or%20No%20Credit"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Credit%20Challenged-%20How%20Alternative%20Credit%20Data%20Can%20Help%20Those%20With%20Little%20or%20No%20Credit%20%282%29_0.jpg" alt="Credit Challenged? How Alternative Credit Data Can Help Those With Little or No Credit" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/yasmin-ghahremani">Yasmin Ghahremani</a> of <a href="http://www.wisebread.com/credit-challenged-how-alternative-credit-data-can-help-those-with-little-or-no-credit">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-the-new-credit-card-formula-means-for-your-wallet">What the New Credit Card Formula Means for Your Wallet</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-surprising-things-lenders-check-besides-your-credit-score">4 Surprising Things Lenders Check Besides Your Credit Score</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-should-never-take-a-loan">6 Times You Should Never Take a Loan</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-three-interest-rates">The Three Interest Rates</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-to-build-business-credit-when-youre-self-employed">5 Ways to Build Business Credit When You&#039;re Self-Employed</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking alternative credit data borrowing credit history credit score lending privacy Tue, 10 Oct 2017 09:00:06 +0000 Yasmin Ghahremani 2033790 at http://www.wisebread.com Here's the Difference Between a Federal and Non-Federal Credit Union http://www.wisebread.com/heres-the-difference-between-a-federal-and-non-federal-credit-union <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/heres-the-difference-between-a-federal-and-non-federal-credit-union" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/human_hands_exchanging_money.jpg" alt="Human hands exchanging money" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You likely already know that credit unions are a bit different from banks, mostly in the way these financial institutions are owned and operated. But as you research your local credit unions, you'll see that some are listed as federal credit unions and others are not.</p> <p>Is there a difference? Does it matter whether you join a federal credit union or one chartered by the state in which it resides? It all depends on how important it is for you to have the money you deposit with a credit union insured by the U.S. government, instead of a private insurer.</p> <h2>Making the switch to credit unions</h2> <p>Both types of credit unions, federal and state-chartered, are not-for-profit organizations owned by its members. If you take out a loan or credit card, or open a savings or checking account with that credit union, this includes you. Because credit unions are not-for-profits, the earnings that they make are paid back to their members as higher savings rates and lower interest rates on loans and credit cards. (See also: <a href="http://www.wisebread.com/credit-unions-vs-banks-whats-the-difference?ref=seealso" target="_blank">Credit Unions vs. Banks: What's the Difference?</a>)</p> <h2>Federal vs. state-chartered</h2> <p>Once you decide that you want to join a credit union, you'll have to determine if you want to become the member of a federal credit union, a state-chartered one, or whether it matters to you at all.</p> <p>The National Credit Union Share Insurance Fund, a federal insurance fund backed by the U.S. government, insures all federal credit unions. Congress created this fund in 1970 to protect the deposits members make at credit unions. Today, an independent agency, the National Credit Union Administration, oversees this fund.</p> <p>The fund operates much like the Federal Deposit Insurance Corporation, which insures the deposits made at traditional banks. The National Credit Union Share Insurance Fund covers deposits of up to $250,000 for each individual member of a credit union.</p> <p>The other type of credit union is state-chartered. The deposits members make here are not covered by the federal insurance fund. Instead, these deposits are insured by private insurers. These funds are still protected. They're just not protected by the federal government.</p> <p>If that matters to you, you can search MyCreditUnion.gov's <a href="https://www.mycreditunion.gov/Pages/mcu-map.aspx" target="_blank">Find a Credit Union</a> tool, which will find federal credit unions near you. Credit unions that are insured by the National Credit Union Share Insurance Fund must display the official National Credit Union Administration sign in their lobbies. Federal credit unions usually include the word &quot;federal&quot; in their name, too.</p> <p>There is no better type of credit union. Both federal and state-chartered offer a range of banking services, credit cards, and loans. The big difference comes down to how these institutions are insured.</p> <h2>Limits</h2> <p>Whether you decide to join a state-chartered or federal credit union, be aware that there are sometimes requirements for membership that you might not be able to meet.</p> <p>Some credit unions are only open to current or former members of the U.S. Military and their relatives. Others are only available to those working in a specific profession, such as teachers or nurses. Others only serve a specific geographic boundary, and its members must live in those boundaries. As you research credit unions, keep these restrictions in mind.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fheres-the-difference-between-a-federal-and-non-federal-credit-union&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHeres%2520the%2520Difference%2520Between%2520a%2520Federal%2520and%2520Non-Federal%2520Credit%2520Union.jpg&amp;description=Heres%20the%20Difference%20Between%20a%20Federal%20and%20Non-Federal%20Credit%20Union"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Heres%20the%20Difference%20Between%20a%20Federal%20and%20Non-Federal%20Credit%20Union.jpg" alt="Here's the Difference Between a Federal and Non-Federal Credit Union" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/heres-the-difference-between-a-federal-and-non-federal-credit-union">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-10"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-easy-ways-to-improve-your-credit-score-during-the-holidays">3 Easy Ways to Improve Your Credit Score During the Holidays</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-countries-where-banks-pay-crazy-interest-rates">10 Countries Where Banks Pay Crazy Interest Rates</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking credit unions federal insurance interest rates not-for-profits u.s. government Wed, 16 Aug 2017 08:30:12 +0000 Dan Rafter 2003616 at http://www.wisebread.com 6 Big Ways ATMs Are Changing http://www.wisebread.com/6-big-ways-atms-are-changing <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-big-ways-atms-are-changing" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_at_the_atm.jpg" alt="Woman at the ATM" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Now that you can pay with <a href="http://www.wisebread.com/bots-chips-and-selfies-how-safe-are-the-new-ways-to-pay" target="_blank">Facebook Messenger and selfies</a>, it seems that you no longer have reason to ever visit your bank's ATM again. In an effort to entice consumers back to the ATM, financial institutions are making serious investments to upgrade cash dispensers in big ways. Here's what you can soon expect coming to an ATM near you.</p> <h2>1. Deposit checks without an envelope</h2> <p>There was a time when payday meant a mad rush to the nearest ATM to deposit a check so it would clear on time to make your payments. Back then, you had to properly insert your check in an envelope and fill out a deposit slip. Nowadays, more and more banks are offering no-envelope ATMs with insertion slots for checks. Equipped with modern scan technology, these new ATMs can accommodate a stack of several checks and provide instant proof of your deposit with a printout of your check on a printed receipt.</p> <h2>2. Get cash using your smartphone</h2> <p>Using the smartphone app from your bank, you may be able to get &quot;cardless cash&quot; from select ATMs. Here's how it works: Open the app, set up a pre-staged withdrawal to create a QR code, and scan that code at participating ATMs to collect your cash. Some bank apps generate a code instead of a QR code and you punch in that code at the ATM.</p> <p>Besides saving you time, cardless cash also keeps your ATM card safe from illegally-installed skimming devices. Since your card isn't read, there's no way for somebody to get a hold of your card's number, expiration date, or security code. (See also: <a href="http://www.wisebread.com/credit-card-fraud-and-how-to-avoid-it?ref=seealso" target="_blank">Credit Card Fraud and How to Avoid It</a>)</p> <h2>3. Interact with an eATM &mdash; not an ATM</h2> <p>In a bigger push to further integrate their ATMs with smartphone apps, banks are working to redesign their cash dispensers to have the look and feel of a giant tablet. The objective is that the ATM screen looks and feels like a natural extension of your bank's smartphone app, turning the ATM into an eATM.</p> <p>Some banks are currently experimenting with the near field wireless communication feature in smartphones so that customers won't need a code or QR code to get cash in the future. Imagine just holding your smartphone up to the ATM and getting instant cash. Another feature that some banks are experimenting with is the ability to allow videoconferencing with bankers, effectively expanding the range of services that customers can receive at an eATM.</p> <h2>4. Withdraw larger amounts without talking to a bank teller</h2> <p>One reason why fewer people were visiting ATMs was that they often couldn't take out enough cash to cover a major expense, such as rent or a car loan payment. Many banks took notice of this through customer feedback and are now allowing customers to withdraw larger amounts than the regular limits. For example, one bank in New York City is letting its customers withdraw up to $3,000 at ATMs located in bank branches and during branch hours. That's three times what most banks in NYC allow, and six times the regular limit in other cities.</p> <h2>5. Withdraw custom amounts</h2> <p>ATMs typically only pay out in $20 bills. But sometimes, you just need $16 to pay a friend or don't even have $20 in your account until the next paycheck comes around. In the near future, more ATMs will give customers a break and let them customize their withdrawals entirely. (See also: <a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money?ref=seealso" target="_blank">5 Sales Strategies Your Bank Uses to Make Money</a>)</p> <h2>6. Recycle cash deposits</h2> <p>Few things are as frustrating as standing in line for 20 minutes to withdraw cash to pay a bill that is due in a few hours, only to find out that the ATM is out of bills! Many banks are looking at ways to recycle cash deposits to minimize the possibility of the machine running out of bills. This feature is critical for banks promising their clients that they can customize their withdrawals.</p> <p>As the ATM gets a much needed upgrade and leverages features from your smartphone, keep an eye on upcoming changes to your bank's ATMs that can help you streamline your finances &mdash; and make sure not to lose your smartphone!</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-big-ways-atms-are-changing&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Big%2520Ways%2520ATMs%2520Are%2520Changing.jpg&amp;description=6%20Big%20Ways%20ATMs%20Are%20Changing"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Big%20Ways%20ATMs%20Are%20Changing.jpg" alt="6 Big Ways ATMs Are Changing" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/6-big-ways-atms-are-changing">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-to-make-sure-you-never-pay-an-atm-fee">8 Ways to Make Sure You Never Pay an ATM Fee</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-countries-where-banks-pay-crazy-interest-rates">10 Countries Where Banks Pay Crazy Interest Rates</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-bank-of-america-s-5-monthly-debit-card-fee-just-the-beginning">Is Bank of America’s $5 Monthly Debit Card Fee Just the Beginning?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-reasons-why-bank-vaults-are-much-more-interesting-than-you-thought">10 Reasons Why Bank Vaults Are Much More Interesting Than You Thought</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-your-smartphone-saves-you-money">8 Ways Your Smartphone Saves You Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Technology ATM automatic teller cash dispensers cash machines deposits money withdrawals Mon, 17 Jul 2017 08:30:16 +0000 Damian Davila 1982853 at http://www.wisebread.com The Pros and Cons of Keeping All Your Accounts in One Bank http://www.wisebread.com/the-pros-and-cons-of-keeping-all-your-accounts-in-one-bank <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-pros-and-cons-of-keeping-all-your-accounts-in-one-bank" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/banking_business_account_finance_economy_concept.jpg" alt="Banking Business Account Finance Economy Concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Checking, savings, business, CD, money market, cash reserve, investment &mdash; with so many accounts available to U.S. consumers, should you keep them with a single financial institution? Let's review the pros and cons of keeping all your accounts in one place.</p> <h2>Pros of keeping all your accounts in one place</h2> <p>Here are some reasons why it makes sense to consolidate your accounts.</p> <h3>1. FDIC covers up to $250,000 for each eligible account</h3> <p>The Federal Deposit Insurance Corporation (FDIC) provides coverage of <a href="https://www.fdic.gov/deposit/deposits/faq.html" target="_blank">up to $250,000</a> per eligible account at the same insured financial institution. Covered accounts include checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs).</p> <p>So, as long as each one of your qualifying accounts has a balance under $250,000, it's OK to keep those accounts together at the same financial institution. For example, if you were to have $100,000 each in a CD, checking account, and savings account at the same FDIC-covered bank, you would still be insured. Even though the accounts together equal $300,000, each account has less than $250,000, and the coverage would still apply.</p> <p>To find out if your deposits are insured by the FDIC, use the FDIC's <a href="http://www5.fdic.gov/edie/" target="_blank">Electronic Deposit Insurance Estimator</a> (EDIE).</p> <p>When you add accounts to your portfolio with the same bank, just remember that the FDIC warns consumers that non-deposit investment products, such as mutual funds, annuities, life insurance policies, and stocks and bonds are not insured by the FDIC.</p> <p>Are you a credit union member?</p> <ul> <li> <p>Federally chartered credit unions and those with headquarters in Arkansas, Delaware, South Dakota, Wyoming, or the District of Columbia are insured by up to $250,000 by the National Credit Union Administration (NCUA).</p> </li> <li> <p>State-chartered credit unions may be covered by a state-sponsored or private insurance, so contact your credit union representative for more details about potential insurance of deposits.</p> </li> </ul> <h3>2. Quicker coverage of bounced checks</h3> <p>Having more than one account at the same bank may help you to quickly cover a check or automatic debit or credit transaction with insufficient funds.</p> <p>Some banks may give you a quick heads up early in the morning that an incoming transaction won't clear due to a low balance, giving you time to make a quick deposit. In the event that you have a savings and checking account with the same financial institution, you could quickly cover the cash crunch by transferring funds from the savings to the checking account over the phone or online. (See also: <a href="http://www.wisebread.com/how-to-fix-your-finances-after-missing-a-payment?ref=seealso" target="_blank">How to Fix Your Finances After Missing a Payment</a>)</p> <p>Doing a quick transaction to cover that mistake could prevent the bank from applying overdraft or insufficient funds fees.</p> <h3>3. Access to higher savings interest rates and lower account fees</h3> <p>When you hold a large total of deposits within the same institution, very often you can qualify for better savings rates and reduced account fees. Find out from your financial institution whether or not they offer benefits for consolidating your accounts.</p> <p>Similarly, holding a larger total balance across several investment accounts, such as an IRA or individual investment account, may grant you some breaks on investment fees. Generally, with at least $100,000 in investable assets in the same institution, you should get lower charges on future applicable fees, such as front-end or back-end loads.</p> <p>If you don't meet the necessary thresholds to access better rates and lower fees, ask your financial institution if they'll accept a signed letter of intent to meet those thresholds by a specific date.</p> <h3>4. More personalized service</h3> <p>Maintaining a wide variety of products with the same bank allows the bank to have a better understanding of your financial history, overview of spending habits, and ability to pay back loans. When a financial institution has a more comprehensive view of your finances, then it can help you optimize your finances with more suitable products. For example, keeping several deposit accounts may help you qualify for a personal line of credit with an interest rate lower than that of a credit card.</p> <h2>Cons of keeping all your accounts in one place</h2> <p>Now let's take a look at the disadvantages of consolidating all your accounts under the same roof.</p> <h3>1. Missing out on potentially better deals</h3> <p>By turning your back on other financial institutions, you may develop a case of &quot;financial myopia&quot; in which you don't think about shopping around for better banking options. Sticking to your same brick-and-mortar branch may cause you to miss out on the better annual percentage yield (APY) that online savings accounts often offer.</p> <p>According to the FDIC, as of June 12, 2017, the <a href="https://www.fdic.gov/regulations/resources/rates/" target="_blank">average rate for a deposit account</a> with a balance under $100,000 was 0.06 percent. On the same day, you could find online savings accounts paying a savings rate of up to 1.25 percent for an account of similar size.</p> <h3>2. Potential of losing FDIC coverage</h3> <p>The FDIC coverage limit is $250,000 for each qualifying account. High-earners may run out of options in the same financial institution for opening eligible accounts and risk having a portion of their deposits without FDIC coverage.</p> <h3>3. Higher chance of loss in case of identity theft</h3> <p>Keeping all your eggs in one basket may work against you if a fraudster gets a hold of one of your accounts or cards. Getting access to just one account may grant them access to all of your money! This is particularly true when connecting two or more accounts so that one account covers another when a balance is running too low.</p> <p>If malicious hackers were to get a hold of the password for your bank's online portal, then they would have hit a major jackpot accessing all of your accounts. By spreading your funds across more financial institutions, you lower the chances of a cybercriminal accessing your funds. Of course, this is as long as you don't use the same password for all online portals. (See also: <a href="http://www.wisebread.com/3-sneaky-ways-identity-thieves-can-access-your-data?ref=seealso" target="_blank">3 Sneaky Ways Identity Thieves Can Access Your Data</a>)</p> <h2>The bottom line: Talk with your banker today</h2> <p>If you're thinking about opening more accounts with your current savings institution, it's a great time to sit with a representative and go over your available options. Armed with that information, you'll be in a better position to shop around for better banking options and make a more informed decision.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/the-pros-and-cons-of-keeping-all-your-accounts-in-one-bank">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-paying-these-6-unfair-banking-fees">Are You Paying These 6 Unfair Banking Fees?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/this-post-really-suk-kuks-examining-islamic-finance">This Post Really Suk-kuks: Examining Islamic Finance</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/banks-still-offering-free-checking-and-great-interest-rates">Banks Still Offering Free Checking and Savings with Great Interest Rates</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-places-to-keep-your-money-safe-and-growing">12 Places to Keep Your Money Safe — And Growing</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-times-you-shouldnt-rush-to-pay-off-your-mortgage">5 Times You Shouldn&#039;t Rush to Pay Off Your Mortgage</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking accounts CDs checking Comparison shopping FDIC financial institutions investments pros and cons rates savings Fri, 16 Jun 2017 08:30:10 +0000 Damian Davila 1963762 at http://www.wisebread.com 4 Ways Your Credit Union Is Changing — for the Better http://www.wisebread.com/4-ways-your-credit-union-is-changing-for-the-better <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-ways-your-credit-union-is-changing-for-the-better" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_bank_teller_636202058.jpg" alt="Woman learning ways her credit union is changing for the better" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Most of us understand the advantages offered by banking with credit unions, including better interest rates and customer service compared to their major bank peers. But even the savviest among us can learn new tricks, and to that end, CO-OP&rsquo;s 2017 THINK Conference highlighted some of the critical ways in which the credit union industry is changing &mdash; for the better. We also caught up with financial experts like Jean Chatzky and Bobbi Rebell at the conference, where they shared some key insights into the types of transformations you might be seeing soon at your local credit union.</p> <h2>It's instituting mobile apps</h2> <p>You might&rsquo;ve already noticed your local credit union instituting new technologies, such as mobile apps enabling remote deposits and mobile payments. This is part of an industrywide push to provide more customer-centric solutions utilizing the latest in mobile technologies. Expect more additions to mobile offerings in a bid to make your experience more efficient.</p> <h2>It's going digital to be more agile</h2> <p>Financial expert, author, and TV host Bobbi Rebell noted that, in addition to instituting mobile apps, credit unions are taking additional steps to create a digital-first platform for customers. But unlike big banks, which have a history of older, legacy customer platforms, credit unions are smaller and more agile, enabling them to build customer-focused digital experiences from the ground up.</p> <p>&ldquo;Digital transformation isn&rsquo;t just about implementing digital experiences here and there,&rdquo; says Rebell, &ldquo;It&rsquo;s really about rethinking the entire customer experience so that digital technologies improve their overall experience.&rdquo;</p> <h2>It's promoting more women</h2> <p>Samantha Paxson, executive vice president and chief marketing officer of Co-Op Financial Services, notes that this lean, agile mentality not only enables credit unions to provide better customer service, but it also allows more women into leadership ranks.</p> <p>&ldquo;Credit unions are one of the few areas of the financial industry where women are represented in significant percentages in leadership. That&rsquo;s because key elements of female leadership &mdash; such as empathy and strong communication skills &mdash; are essential to the success of credit unions in the community.&rdquo;</p> <h2>It's staying true to your community</h2> <p>One of the personal finance world&rsquo;s biggest luminaries, Jean Chatzky of <em>Today Show</em> fame, was on hand to help host the THINK Conference, noting the importance of credit unions to the lives of so many people in communities across the country. And perhaps that&rsquo;s one of the biggest take-aways here: mobile apps, new digital platforms, and other innovations you can expect from your credit union are all designed to get closer to your needs. Credit unions aren&rsquo;t losing their local focus, nor will their digital innovations present a less human experience for their customers. Unlike other segments of the financial industry, credit unions are trying hard to stay true to their roots: you.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/janet-alvarez">Janet Alvarez</a> of <a href="http://www.wisebread.com/4-ways-your-credit-union-is-changing-for-the-better">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-360-review">Capital One 360: A Competitive Banking Option</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/credit-unions-vs-banks-whats-the-difference">Credit Unions vs. Banks: What&#039;s the Difference?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-i-like-big-banks">Why I Like Big Banks</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking bank accounts banking banks credit unions local credit union saving money Mon, 22 May 2017 22:06:53 +0000 Janet Alvarez 1952546 at http://www.wisebread.com 4 Ways Your Money Can Support Your Values http://www.wisebread.com/4-ways-your-money-can-support-your-values <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-ways-your-money-can-support-your-values" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-511213377.jpg" alt="Woman learning how money can support her values" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Giving to charity is an important line item in my family budget &mdash; but it's only one line. There are far more charitable organizations that I want to support than I can possibly give money to.</p> <p>But what if there were a way to support your values without having to free up more money to give to charity? In fact, there is a way. You can do the same things you always do with your money &mdash; bank it, invest it, spend it on utilities, and shop &mdash; all while providing important financial benefits to the causes you care about.</p> <h2>Socially responsible robo-investing</h2> <p>I'll never forget the stricken look on my financial adviser's face when I told him I was uncomfortable with big oil, tobacco, or firearms as investments in my retirement portfolio. He took a deep breath and told me that I would probably have to be a little flexible about that if I wanted to maintain my passive investment strategy. The only other option would be to individually choose the investments I wanted so that my money was aligned with my values. Not only would that be expensive and time consuming (someone would have to do the stock picking), but it would not necessarily grow my money.</p> <p>Passive investors like me now have the option of investing in funds that only go to companies we approve of. The new robo adviser <a href="https://www.openinvest.co/" target="_blank">OpenInvest</a> offers investors the ability to personalize the specific issues they care most about. You simply create an &quot;issue profile&quot; that narrows down the types of companies you would either like to invest in or steer clear of. The robo adviser's algorithm then creates a basket of about 60 stocks that match your values and <em>should </em>match the returns of the broader market.</p> <p>Your money grows just like it would with any investment, but you are supporting companies that reflect your values. (See also: <a href="http://www.wisebread.com/5-stocks-to-buy-if-you-love-the-earth?ref=seealso" target="_blank">5 Stocks to Buy If You Love the Earth</a>)</p> <h2>Cellphone activism</h2> <p>It's hard to imagine life without your cellphone &mdash; which makes it an excellent tool to help support your values. Simply changing your cellphone provider can make paying your bill part of your activism.</p> <p>Whether your politics align left or right, you can switch to an activist cellphone carrier that will use a portion of their profits to fund important causes. <a href="http://www.credomobile.com/" target="_blank">Credo Mobile</a> is a mobile and long distance provider that has donated $83 million to various progressive nonprofit groups since its inception in 1985. On the right, <a href="https://www.patriotmobile.com/" target="_blank">Patriot Mobile</a> offers conservatives the opportunity to choose the organization that a portion of their monthly phone bill will be donated to.</p> <p>In both cases, the mobile carrier allows you to keep your phone and phone number when you make the switch. You are already paying for your cellphone usage; why not have the money fund causes you care about?</p> <h2>Shop your values</h2> <p>Amazon has become the most convenient way to handle shopping in the modern age, but did you know it can also be the most convenient way for you to donate to charities you love?</p> <p><a href="https://smile.amazon.com/ref=nav_logo" target="_blank">AmazonSmile</a> is exactly like the Amazon store you already know, with the exact same prices and fees, and the exact same login you already use. But when you sign on with AmazonSmile, you are allowed to choose any one of over a million 501(c)(3) charitable organizations to benefit from your shopping. Each time you make a purchase, AmazonSmile gives 0.5 percent of the purchase price to your charity.</p> <p>While not all purchases are eligible for AmazonSmile, the vast majority are. In addition, there are occasionally limited-time special promotions that increase the donation percentage.</p> <p>Once you have signed up with AmazonSmile, just make sure you start any Amazon shopping from that page to keep your donations going to your favorite charity whenever you shop.</p> <h2>#BankBlack revitalizes communities</h2> <p>You might remember seeing the rapper Killer Mike on MTV in 2016 asking 1 million people to open a savings account with a black-owned banking institution. That helped start the #BankBlack movement, which is credited with bringing $50 million in new deposits to black-owned banks over a six-month span in 2016, according to the Huffington Post.</p> <p>But banking with a black-owned financial institution is more than just a hashtag. These institutions were once the only places where African Americans could expect fair treatment when discrimination was rampant in the banking industry. Nowadays, black-owned banks offer access to necessary banking services in distressed neighborhoods, while also providing economic revitalization.</p> <p>Since black-owned banks specifically market to the African American communities that are disproportionately unbanked or underbanked &mdash; meaning they rely on check cashing services and pawnshops for their banking needs &mdash; opening an account with a black-owned bank is an excellent way to put your money to work for social justice.</p> <p>The Blackout Coalition offers a <a href="http://blackoutcoalition.org/black-u-s-banks/" target="_blank">map of black-owned banks and credit unions</a> across the United States, so you can find one near you. Alternatively, if you are not in an area with a local black-owned bank, <a href="https://www.oneunited.com/" target="_blank">OneUnited</a> is an online bank that is also the nation's largest black-owned bank.</p> <h2>Put your money where your values are</h2> <p>Not everyone has money in the budget to support the social programs they are most passionate about. But making a few tweaks to how you bank, invest, call, and shop will allow you to make the world a better place without spending any more money. You'll feel good about how your money represents your values, and your favorite causes will benefit from your choices. It's a win-win.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/4-ways-your-money-can-support-your-values">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/ten-great-charities-that-deserve-your-dollars-this-year">Ten Great Charities that Deserve Your Dollars This Year</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-foolproof-ways-to-protect-your-money-from-inflation">4 Foolproof Ways to Protect Your Money From Inflation</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/charitable-giving-give-in-order-to-receive">Charitable Giving: Give in Order to Receive</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/you-should-make-these-11-easy-donations-before-time-runs-out">You Should Make These 11 Easy Donations Before Time Runs Out</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/manage-your-charitable-giving">Manage your charitable giving</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Banking Investment activism amazon smile banking black owned businesses cellphones charity donations giving politics social causes values Tue, 25 Apr 2017 08:30:08 +0000 Emily Guy Birken 1931274 at http://www.wisebread.com 6 Things You Should Know About Joint Checking Accounts http://www.wisebread.com/6-things-you-should-know-about-joint-checking-accounts <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-things-you-should-know-about-joint-checking-accounts" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-646688660.jpg" alt="Couple learning things about a joint checking account" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Joint checking accounts offer convenient money management for many different types of relationships, including married and cohabiting couples and adult children and their parents.</p> <p>But the convenience of joint checking accounts potentially comes with a cost that families need to consider before signing up. Here are six issues you need to think through before you open a joint checking account with a spouse, a significant other, an adult child, or a parent.</p> <h2>1. There is no accountability for withdrawals</h2> <p>Generally, couples tend to open joint accounts because they are sharing a home and expenses. That means that it's in their best interests to be responsible with the money, since it will affect them both if the rent money is spent on a weekend in Vegas. However, if one person is unreliable with money, or planning to leave the relationship suddenly, a joint account can be dangerous for the other account holder.</p> <p>This issue can be more difficult when the two account holders are parent and child. Often, an adult child will request that they be added to their elderly parents' checking account to help protect dear old Mom or Dad. They can help pay bills, and make sure that there is no fraudulent activity on the account. The problem is that both account holders have every right to withdraw money from the account &mdash; which an unscrupulous adult child could take advantage of.</p> <h2>2. Joint accounts are vulnerable to the financial mistakes of both owners</h2> <p>If either account owner has unpaid debts that go into collection, the creditor has every right to use the joint account to satisfy those debts. This means you might potentially find your joint checking account completely drained in order to pay off debts you are unaware that your co-owner has run up.</p> <p>In addition, if there is a legal judgment against either account owner, the money in the joint account could be considered part of the assets awarded in the judgment. For instance, if Jane is sued because she crashed into a bus, then the assets in the joint account she holds with her elderly father are considered part of Jane's assets in terms of the lawsuit &mdash; even if the account was originally solely in Dad's name.</p> <h2>3. A joint account could hurt your credit</h2> <p>Although your spouse or child's credit rating can't ding your score, the way they handle their money can hurt your credit if you share a joint account with them. Since creditors are required to report joint account information, an account holder who struggles with debt and paying bills on time will negatively affect the co-owner's credit rating &mdash; unless and until the money behavior improves.</p> <h2>4. A joint account can affect eligibility for financial assistance</h2> <p>If either account owner needs to qualify for any kind of financial assistance, from financial aid for college to Medicaid, the money in a jointly held account is included in the eligibility calculations for the financial aid. That means you might end up forfeiting your ability to qualify for the financial assistance if your account co-owner holds more cash in the account than you would as a sole account owner.</p> <h2>5. Your co-owner can close the account without your permission</h2> <p>Certain banks require consent from both parties to close a joint checking account, but most do not. Typically, state laws dictate that any person who can write checks on the account can close it, at any time, regardless if their co-owner is present or even aware. The benefit to this is if one party relocates, passes away, or otherwise becomes incapacitated, there are very few issues the remaining co-owner must go through to close the account. The danger, however, lies in the potential for one co-owner to simply deplete the funds, close the account, and disappear. Always make sure you're sharing a checking account with someone you trust.</p> <h2>6. Parent/child joint accounts can have estate implications</h2> <p>A joint account holder retains sole control of the money in the account in the event of the co-owner's death. In the case of spouses or other cohabiting couples, this kind of financial transfer in case of death is not a problem. However, if the account owners are a parent and child, the issue is much more complicated.</p> <p>That's because the money in the checking account stays with the surviving account holder, bypassing whatever the deceased account holder may have put in their will. For instance, Loretta has three children and has specified in her will that her assets will be distributed evenly among them. But Loretta has a sizable joint account with her son Jason, and upon her death the money in that account will be solely under his control. Unless Jason feels like splitting up the money in the account three ways, his siblings are not going to see that portion of their inheritance.</p> <h2>Merge with caution</h2> <p>While joint checking accounts offer convenience to couples and parent/child relationships, they also come with a number of potential headaches. Make sure you know what you are signing up for before you and your potential co-account owner start picking out your personalized checks.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/6-things-you-should-know-about-joint-checking-accounts">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-your-taxes-will-change-after-you-have-a-kid">Here&#039;s How Your Taxes Will Change After You Have a Kid</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-put-your-spouse-on-a-budget-without-ruining-your-marriage">How to Put Your Spouse on a Budget Without Ruining Your Marriage</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-average-people-should-consider-a-prenup">6 Reasons Average People Should Consider a Prenup</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/when-dropping-your-life-insurance-is-the-right-decision">When Dropping Your Life Insurance Is the Right Decision</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Family children credit score debts estate planning joint checking accounts marriage parents shared finances spouse withdrawals Mon, 17 Apr 2017 08:30:13 +0000 Emily Guy Birken 1927307 at http://www.wisebread.com 5 Sales Strategies Your Bank Uses to Make Money http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-sales-strategies-your-bank-uses-to-make-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-482043394.jpg" alt="Woman learning sales strategies her bank is using" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many people fail to realize that their banking institution is, in fact, a business. And as such, they're using a wide range of marketing and sales strategies on you, whether you realize it or not. It's up to you to be the smart customer. Let's review five of the sales strategies you should keep an eye on.</p> <h2>1. Cash or Gift Card Offer for Opening an Account</h2> <p>When a new bank branch opens in your neighborhood, you may receive a mailer informing you that you could receive a hefty cash bonus or gift card for opening a new account. Free money may sound great, until you realize that there is a catch. Very often you have to meet a minimum balance deposit for a required period of time, effectively locking you into doing business with the bank. Think about it: How often do you switch banks? Consider whether you really want to deal with having a new bank account before you jump at the offer.</p> <h2>2. Free Checking Account</h2> <p>There's no such thing as a free lunch, and some <a href="http://www.wisebread.com/banks-still-offering-free-checking-and-great-interest-rates?ref=internal" target="_blank">free checking accounts</a> are no exception. Common requirements that banks impose on their customers include:</p> <ul> <li>Maintaining a minimum balance. Some banks require a minimum daily balance per statement cycle to have a $0 monthly maintenance fee;<br /> &nbsp;</li> <li>Meeting a minimum number of transactions. Some banks may require you to use your debit card a minimum of 10 to 12 times per month; or<br /> &nbsp;</li> <li>Making at least one monthly deposit. Often, that monthly deposit must be a direct deposit from your employer.</li> </ul> <p>Banks may set only one of these requirements or a combination of them. If you were to fall short on any of these requirements &mdash; such as making only 11 out of 12 required monthly transactions, or having an account balance below the required minimum for even just one day &mdash; you would get charged a fee for using your &quot;free&quot; checking account. Make sure you can easily meet their requirements before signing up.</p> <h2>3. Higher Interest Rate on Savings</h2> <p>A bank may offer what sounds like a very high savings rate, but the bank will use language such as &quot;up to 2% APY.&quot; To get the promised 2%, you'd have to keep a very high balance. Depending on the amount of money you actually have to put into the savings account, you might end up with a lower rate than you already have &mdash; 0.20% or 0.25% APY, for example. (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=seealso" target="_blank">Best Online Savings Accounts</a>)</p> <h2>4. ATM Fees Refund</h2> <p>Let's face it: ATM fees are annoying, and some banks will offer to reimburse all or some of the ATM fees to make up for the inconvenience. However, the limit of the ATM fee reimbursement varies widely per banks. Some banks offer $10, $15, or $20 per statement cycle or month. With the average ATM fee at $2.90 in 2016, you could easily eat up any of those refunds in just a few trips to the ATM. Consider your ATM needs and options in your area before you sign up with a bank with limited network ATMs. (See also: <a href="http://www.wisebread.com/8-ways-to-make-sure-you-never-pay-an-atm-fee?ref=seealso" target="_blank">8 Ways to Avoid ATM Fees</a>)</p> <h2>5. Mobile Check Deposit</h2> <p>You've seen the TV ads: a busy Millennial, mom, or retiree totally ecstatic about how they can save time by depositing checks on the go with their smartphone. Snap, click, deposit! It's great for the average person with a few checks for small amounts, but if you're a freelancer or small business owner who thinks this will save you trips to the bank, think again. There are all sorts of limits on the amount per check (and even amount per 30 days) that you can deposit this way. Some banks offer special equipment that allows higher limits, but still, it may not be as convenient as you think. (See also: <a href="http://www.wisebread.com/7-modern-ways-to-send-money-to-your-kid?ref=seealso" target="_blank">Modern Ways to Send Money Instead of Using a Check</a>)</p> <h2>The Bottom Line: Know Your Bank Fees!</h2> <p>When you're unhappy with your current financial institution, the promise of better banking through a higher savings interest rate, lack of fees, or refund of all ATM fees may sound enticing. While some of these selling points can indeed improve your financial situation, make sure to thoroughly review the requirements, if any, to gain access to the promised features. (See also: <a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps?ref=seealso" target="_blank">Switch to a Better Bank in 5 Easy Steps</a>)</p> <p>When facing a list of potential requirements, do a cost-benefit analysis. For example, can I leave a $5,000 deposit to get a 1.5% APY without putting any pressure on my monthly budget? If so, then take advantage of that higher savings rate. Be a smart bank user, shop around, and evaluate all of your options.</p> <h2 style="text-align: center;">Like this article? Pin it!&nbsp;</h2> <p>&nbsp;</p> <p style="text-align: center;"><a href="//www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-sales-strategies-your-bank-uses-to-make-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money.jpg&amp;description=5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money" data-pin-do="buttonPin" data-pin-config="above" data-pin-color="red" data-pin-height="28"><img src="//assets.pinterest.com/images/pidgets/pinit_fg_en_rect_red_28.png" alt="" /></a> </p> <!-- Please call pinit.js only once per page --><!-- Please call pinit.js only once per page --><script type="text/javascript" async defer src="//assets.pinterest.com/js/pinit.js"></script></p> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money.jpg" alt="5 Sales Strategies Your Bank Uses to Make Money" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-signs-its-time-to-find-a-new-savings-account">4 Signs It&#039;s Time to Find a New Savings Account</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-the-difference-between-a-federal-and-non-federal-credit-union">Here&#039;s the Difference Between a Federal and Non-Federal Credit Union</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-earn-a-good-interest-rate-in-a-low-rate-environment">How to Earn a Good Interest Rate in a Low-Rate Environment</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking atm fees atms cash incentives credit unions interest rates mobile deposits sales strategies savings accounts Tue, 21 Feb 2017 10:31:29 +0000 Damian Davila 1893288 at http://www.wisebread.com 5 Times Personal Loans May Be Better Than Credit Cards http://www.wisebread.com/5-times-personal-loans-may-be-better-than-credit-cards <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-times-personal-loans-may-be-better-than-credit-cards" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_62580866_LARGE.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Certain life events require more cash than we have on hand. It is easy to just grab a credit card, charge those expenses, and forget about them until it&rsquo;s time to make a payment. Although sometimes more convenient, credit cards aren&rsquo;t always the best answer. Depending on your credit rating and your needs, a personal loan can be the less expensive option.</p> <p>If you need long-term option financing, you can likely get a lower interest rate and possibly higher limit with a personal loan than you would with a credit card. Here are a few instances in which a personal loan can be better than a credit card. (See also: <a href="http://www.wisebread.com/best-lenders-for-personal-loans?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=article">Best Personal Loan Companies</a>)</p> <h2>Weddings and Important Life Events</h2> <p>Because events like weddings and other big celebrations are not the types of purchases that benefit from rewards programs or the extra benefits that credit cards provide, you aren&rsquo;t losing anything by using a personal loan to pay for them. You can choose the loan amount, based on your budget and according to the installments you can pay each month. Personal loans also allow a longer period to pay off the wedding expenses, at a lower interest rate than most credit cards offer. Companies like <a href="http://promisefinancial.evyy.net/c/27771/245132/4106">Promise Financial</a> specialize in financing for life events.</p> <h2>Health Expenses</h2> <p>Whether you end up with a bill for an emergency visit or have unexpected medical expenses, unless you can pay the entire balance in full right away, it isn&rsquo;t a good idea to charge it to a credit card. You can often qualify for much higher amounts with a personal loan than many credit cards will offer. In fact, personal loan providers such as <a href="http://lendingclub.pxf.io/c/27771/322506/4962">Lending Club</a> offer an exclusive Lending Club Patient Solutions loan specifically for medical expenses. Loans for as much as $50,000 are available with terms from 2 to 7 years, and interest rates as low as 3.99%. Lending Club Patient Solutions loans also offer a 0% promotional period for up to 24 months, in which you can save quite a bit of money if you pay your balance in full during that time.</p> <h2>Business Startup Expenses</h2> <p>Although a plethora of <a href="http://www.wisebread.com/the-5-best-credit-cards-for-small-businesses?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">small business credit cards</a> exist designed to reward business purchases, credit cards aren&rsquo;t great for startup capital. Companies such as <a href="http://www.kqzyfj.com/click-2822544-11145625-1452787774000">Kabbage</a> specialize in <a href="http://www.wisebread.com/10-smart-ways-to-get-a-small-business-loan?ref=internal">small business loans</a> and can help get your business going. Loans with Kabbage can be from $2,000 to $100,000 with fees ranging from 1% to 12% of the loan the first two months and 1% the remaining four months.</p> <h2>Debt Consolidation</h2> <p>If you have acquired an enormous amount of debt that includes credit card debt, there&rsquo;s a good chance you won&rsquo;t be able to consolidate it all with another credit card. Even if you get a credit card that offers a <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">0% introductory APR for balance transfers</a>, you might not get a credit limit high enough. Using a <a href="http://www.wisebread.com/when-to-do-a-balance-transfer-to-pay-off-credit-card-debt?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">balance transfer to pay off credit card debt</a> only works if you can pay it all off within the promotional period. Otherwise it&rsquo;s not worth it, because credit card APRs are generally very high.</p> <p>An alternative option for consolidating large debts is personal loans. Loan platforms such as <a href="http://www.kqzyfj.com/click-2822544-11789034-1427835327000">Avant</a> specialize in providing personal loans to consumers with fair credit that help consolidate debt.</p> <h2>Home Improvement</h2> <p>Although there are credit cards for home improvement projects that award supplies and materials with special cash back and discount offers, many only award these purchases at certain times of the year and charge much higher interest rates. <a href="http://www.wisebread.com/store-credit-cards-that-dont-suck?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">Store cards</a> specific to home improvement may offer cash back and deferred interest. However, after the promotional period the APRs are very high. In addition to personal loans offering higher credit limits that are more likely to cover the costs of your home improvement project, interest rates are available with various lenders for as low as 3%.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-times-personal-loans-may-be-better-than-credit-cards&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Times%2520Personal%2520Loans%2520May%2520Be%2520Better%2520Than%2520Credit%2520Cards.jpg&amp;description=5%20Times%20Personal%20Loans%20May%20Be%20Better%20Than%20Credit%20Cards"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Times%20Personal%20Loans%20May%20Be%20Better%20Than%20Credit%20Cards.jpg" alt="5 Times Personal Loans May Be Better Than Credit Cards" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/5-times-personal-loans-may-be-better-than-credit-cards">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/credit-cards-vs-debit-cards-a-comprehensive-comparison">Credit Cards vs. Debit Cards: A Comprehensive Comparison</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards">The Best 0% Balance Transfer Credit Cards</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-best-low-interest-rate-credit-cards">The Best Low Interest Rate Credit Cards</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-surprising-ways-to-negatively-affect-your-credit-score">10 Surprising Ways to Negatively Affect Your Credit Score</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-rebuild-your-credit-in-8-simple-steps">How to Rebuild Your Credit in 8 Simple Steps</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Credit Cards Debt Management best personal loans Mon, 06 Feb 2017 20:52:46 +0000 Christina Majaski 1776218 at http://www.wisebread.com Switch to a Better Bank in 5 Easy Steps http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/switch-to-a-better-bank-in-5-easy-steps" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_phone_check_78686861.jpg" alt="Woman switching to a new bank in 5 easy steps" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Switching banks is a pain. You have to close accounts, research new banks, and rework all those automatic bill payments you've set up at the financial institution you'd like to leave.</p> <p>But sometimes making the switch is the right move. Maybe your bank has raised its fees. Maybe it's closed the branches that operated near your home or work. And if you're moving, you might have no choice but to make the switch.</p> <p>Yes, switching banks does take a bit of work. But it's relatively simple work.</p> <p>If you need or want to switch to a new bank, follow this simple step-by-step guide. Doing so will ease any stress from jumping to a new financial institution.</p> <h2>1. Research a New Bank</h2> <p>Before closing any accounts at your current bank, make sure that you spend some time researching a new home for your money. Choose a bank that offers online bill pay and direct deposit, of course. You also want one that offers free checking and higher interest rates on savings accounts &mdash; relatively speaking, since interest rates are still near historic lows.</p> <p>Customer service matters, too. Search for a bank that has plenty of ATMs near you and that still operates branches within a short drive of your home or office. You might also consider investigating a credit union or an online bank, both solid alternatives to traditional banks.</p> <p>The key in this search is the checking account. Make sure you know exactly how your new checking account will operate. Is there a minimum-balance requirement? Are there fees if you make too many withdrawals during a month? How large of an initial deposit do you need to set up your new account? These are all key questions that you should answer during your research.</p> <h2>2. Open Your New Checking Account</h2> <p>Once you select a new bank, start the switching process by opening a checking account there. Do this before you close the checking account at the bank you are leaving. You might still need money in your old account to cover payments that haven't yet cleared.</p> <p>To open a checking account, you'll need some basic information. You'll need to provide, of course, your name, address, and date of birth. But you'll also need to provide your Social Security number and one official piece of photo identification. Usually, this will be your driver's license. But banks will also accept an official state ID card or your passport.</p> <p>Your bank will then require you to make an initial deposit into your new account. How big this deposit must be will vary by bank.</p> <h2>3. Cancel Automatic Payments at the Bank You Are Leaving</h2> <p>Once you've established a checking account at your new bank, it's time to cancel any automatic payments that you've set up at the bank you are leaving. Do this right away, so that your creditors don't try to take money out of an account that is either empty or has been officially closed.</p> <p>Then set up the same automatic payments with your new bank. You'll need your bank's routing number and address and your checking account number to do this.</p> <p>If you had signed up to have your paycheck deposited directly into your old account, cancel that direct-deposit arrangement, too. Then contact your company's human resources department to move your direct deposits to your new checking account.</p> <h2>4. Close Your Old Account &mdash; When the Time Is Right</h2> <p>You can now close your old account, if all of the checks you've written against it have cleared. Compare your check register against your online account to make sure.</p> <p>If you don't do this? Any checks that have not yet cleared will bounce if your old account is closed. The companies that you were paying might charge you late fees if this happens. This danger is why it usually makes sense to wait at least a month after opening your new checking account before closing your old one.</p> <h2>5. Get It in Writing</h2> <p>When you're sure that all your checks and payments have cleared, you can officially close that old account. Doing this in person might be the best choice. That way you can instantly receive written verification that your account has been closed. You'll want this documentation in case your former bank reopens your account or claims that it was never shut down in the first place.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/think-twice-before-ditching-your-current-bank">Think Twice Before Ditching Your Current Bank</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-signs-its-time-to-find-a-new-savings-account">4 Signs It&#039;s Time to Find a New Savings Account</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-the-difference-between-a-federal-and-non-federal-credit-union">Here&#039;s the Difference Between a Federal and Non-Federal Credit Union</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking automatic payments checking accounts credit unions customer service interest rates savings accounts switching banks Fri, 04 Nov 2016 10:00:06 +0000 Dan Rafter 1826531 at http://www.wisebread.com 6 Reasons to Visit Your Credit Union on October 20 http://www.wisebread.com/6-reasons-to-visit-your-credit-union-on-october-20 <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-reasons-to-visit-your-credit-union-on-october-20" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_glasses_piggybank_103388239.jpg" alt="Woman visiting her credit union on Credit Union Day" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Since 1948, International Credit Union Day has been celebrated on the third Thursday of October. This October 20th, 2016, more than 217 million credit union members around the world are joining in the celebration.</p> <p>About half of all credit union members are Americans (<a href="http://www.cuna.org/Research-And-Strategy/DownLoads/mcue/">108.1 million</a>!), but if you're not one of them, this Oct. 20th is a great opportunity to visit a local credit union, shop around for financial services, and find out whether or not you can get a better deal at a credit union.</p> <h2>Key Differences Between a Bank and a Credit Union</h2> <p>Only 36% of people surveyed by the Credit Union National Association (CUNA) were aware that credit unions are not-for-profit financial institutions. This is just one of the many differences between a traditional bank and your local credit union.</p> <h3>1. Credit Unions Have Members</h3> <p>You're not a client; you're a member or owner of the credit union. You're required to make a deposit in a savings account (often from $25 to $100) that grants you a share of the credit union.</p> <h3>2. You Must Be Eligible for Membership</h3> <p>Typical fields of membership include employee groups, associations, religious or fraternal affiliations, and residential areas.</p> <h3>3. You Can Vote on Key Issues</h3> <p>Including electing unpaid officers and directors for the credit union to establish operating policies and other key issues. Each member has one equal vote, no matter how small his or her deposit.</p> <h3>4. Deposits Are Insured by the NCUA or State or Private Insurance</h3> <p>While qualifying deposits in banks are insured by the Federal Deposit Insurance Corporation (FDIC), deposits in federally chartered credit unions and those with headquarters in Arkansas, Delaware, South Dakota, Wyoming, or the District of Columbia are insured by the National Credit Union Administration (NCUA). Each individual account, joint account, trust account, retirement account, and business account at any federal credit union is insured for up to $250,000. If you have a savings account, a trust account, and a Roth IRA at a federal credit union, you're covered for up to total of $750,000. State chartered credit unions and those with headquarters in states other than the ones listed earlier may be covered by either state or private insurance.</p> <h3>5. Credit Unions Collaborate With Each Other</h3> <p>Many credit unions offer shared branching that allows you to make deposits and withdrawals at locations other than that of your own credit union. With <a href="https://co-opcreditunions.org/locator/">nearly 30,000 ATMs</a> and more than 5,000 shared branches, credit union members have more direct, surcharge-free access to their money than most traditional bank customers do.</p> <h2>Why It Pays to Take Part in Credit Union Day</h2> <p>In a nutshell: higher savings rates for your deposits and lower costs for your loans.</p> <p>Let's compare some financial products from credit unions with those from banks, as of <a href="https://www.ncua.gov/analysis/Pages/industry/credit-union-bank-interest-rates-june-2016.pdf">June 2016</a>:</p> <ul> <li>Credit unions had a national average rate of 4.40% for five-year home equity loans, while banks had a 4.97% average rate.<br /> &nbsp;</li> <li>A 15-year fixed-rate mortgage would have only cost an average 3.06% per year at credit unions and an average 3.10% at banks.<br /> &nbsp;</li> <li>A classic credit card would have only charged you an average 11.56% at credit unions and an average 12.66% at banks.<br /> &nbsp;</li> <li>A $10,000 five-year CD yielded a national average 1.51% at credit unions and 1.22% at banks.<br /> &nbsp;</li> <li>A 48-month new car loan charged a national average 2.61% at credit unions and 4.58% at banks.<br /> &nbsp;</li> <li>A $2,500 money market account paid a national average 0.17% at credit unions and 0.12% at banks.</li> </ul> <p>Year after year credit unions demonstrate that they are working hard to get you the best bang for your buck. (See also: <a href="http://www.wisebread.com/9-good-reasons-to-choose-a-credit-union-instead-of-a-bank?Ref=seealso">9 Good Reasons to Choose a Credit Union Instead of a Bank</a>)</p> <h2>What Can You Expect on International Credit Union Day</h2> <p>Several credit unions around the country will provide special offers and freebies to their current and new members.</p> <h3>1. Even Lower Fees</h3> <p>CUNA advises credit unions to offer loans or new share draft accounts for the <a href="http://www.cuna.org/Marketing-And-Member-Education/DownLoads/2016-ICU-Day-Celebration-Ideas/">same fees</a> that credit unions charged the year they opened.</p> <h3>2. Free Money or Freebies to Open a New Account</h3> <p>The Eagle Community Credit Union in California is offering a <a href="http://www.eaglecu.org/ICUDay">$25 deposit</a> and a lunch tote to new account holders from October 1 until October 31, 2016. The Meridian Trust Federal Credit Union in Cheyenne, Wyoming is offering a <a href="https://www.mymeridiantrust.com/about/support/international_credit_union_day/international_credit_union_day_special_offers.aspx">$50 Visa gift card</a> to those opening a new checking account.</p> <h3>3. Chance to Win a Discount Off Your Qualifying Rate for a New Loan</h3> <p>The University of Hawaii Credit Union is offering on October 21 and 22, 2016 the chance to pull a rate as low as 1.49% APR or <a href="https://www.uhfcu.com/?Cabinet=Main&amp;Drawer=UHFCU+Advantages&amp;Folder=Specials&amp;SubFolder=Auto+Loan+Special&amp;page_name=Auto+Loan+Special">up to 0.75% off</a> your qualifying rate. &quot;Checking in&quot; at the event with your Yelp app will get you 0.25% off your qualifying rate.</p> <h3>4. Free Gas Cards</h3> <p>Other credit unions may offer you incentives to receive free gas cards when you bring a completed certificate to a participating car dealership. If you get a new-car loan with the credit union at a qualifying dealer, the gas card can be of higher value.</p> <h3>5. Chance to Win Free Money</h3> <p>Last but not least, some credit unions may just be handing out money. In 2014, the Royal Credit Union in Eau Claire, Wisconsin handed out cups filled with $2 bills and fliers about the credit union to 500 students. All cups were entered into a drawing for <a href="https://www.facebook.com/likeRCU/posts/797687906961897">five real $2 bills</a>.</p> <h3>6. Opportunity to Fundraise for Your Community</h3> <p>The River Cities Community Credit Union in Atchison, Kansas hosts every year a hot dog meal fundraiser to donate to the Atchison County Food Pantry. Several credit unions host fundraisers to contribute to the local community.</p> <h2>The Bottom Line: Save the Date!</h2> <p>From a better saving rate for your deposits to a competitive new car loan to a freebie to boost your emergency fund, there is a lot you can gain from International Credit Union Day. As of December 2015, there 6,259 credit unions in the U.S. This Thursday October 20, 2016 is a great time to find out what you've been missing at your local credit union. Some special deals may only be available on that day or for a very limited time so plan ahead and use the <a href="http://mapping.ncua.gov">NCUA's credit union locator</a> to find the ones nearest you.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/6-reasons-to-visit-your-credit-union-on-october-20">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. 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