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More money and finance tips from
Bankrate.com |
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Bank vs. credit union
If you are considering a credit union, track your number of
written checks, ATM usage and associated fees. Compare the
cost of using these services to determine whether the additional
interest you'd earn with a credit union account will offset
the fees. More
Loans for lower incomes
If you don't qualify for a traditional bank loan due to lower
income levels and emerging credit, try a credit union. Credit
union leaders promote "character" loans -- that
is, a person's desire to repay is as important as their repayment
ability or income. More
Credit union credit cards
Credit union cards offer lower interest rates and fees, and
tend to be more flexible when customers are overextended or
late with payments. But you'll find fewer perks-such as credit
card miles and cash-back bonuses-with credit union cards.
More
Give yourself a vacation club account
To figure out how much to save from each paycheck for your
vacation club account, first estimate how much the vacation
will cost and subtract how much you'll finance by other means.
Then, divide the difference by the number of paychecks you'll
receive before your vacation. More
Competitive service
Banks typically offer extensive branch and ATM networks, but
credit unions are steadily offering more services and products.
Credit unions also offer lower fees, better interest rates,
to online banking, toll-free call-in loan approval and shared
branching. More
Christmas club accounts
Christmas club accounts allow you to regularly save money
during the year, and return in a lump sum on a set date-just
before Christmas. While the interest rate isn't high and early
withdrawals are penalized, it outweighs a hefty credit card
debt with high interest. More
Nonmember service
One credit union competes with check-cashing stores to provide
services for nonmembers, such as payday loans, car title loans,
money orders and money wiring services-with lower interest
rates. This is an economical choice for the "unbanked."
More
Vacation club accounts
Vacation club accounts reduce or eliminate credit card financing,
by regularly depositing money from each paycheck into the
account. The money is accessible on a set date. The early
withdrawal penalty is a deterrent from spending it on other
uses. More
Online loan applications
Credit union members can apply for a loan on the Internet
and get approval within minutes. This convenient "at
your fingers" service directly competes with banks' service
benefits. More
Auto financing
Auto financing is the bread-and-butter business for credit
unions. They offer super-low loan rates-often lower than banks'
rates-and consumer-friendly service. Car shoppers can apply
for auto loans online, over the phone, at the branch, even
at the dealer. More
Lease look-alike loans
Many credit unions offer auto lease programs. Like dealer
leases, members get more car for their monthly payment. At
the lease's end, members opt to sell the car and pay off the
balance; trade the car and pay off the balance; keep the car
and refinance the amount owed; or return the car to the credit
union. More
Credit member savings
Credit union members aren't just customers -- they own the
place. Credit unions often pass their savings on to members.
This means that members reap the benefits of strong financial
years through lower rates and cash bonuses. More
Bonus dividends
Depending on the annual financial success of your credit union,
you may reap an annual or quarterly bonus dividend. Bonus
dividends are not an entitlement, so your credit union needs
to clearly explain the factors that allowed the members' reward.
More
ATM networks
Credit unions lack automated teller machine (ATM) networks.
Some credit unions have formed no-surcharge ATM networks among
themselves to reduce member costs. If you frequently use ATMs,
track whether you'll earn enough interest to offset ATM fees.
More
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