Banking, Which is Best?

Personal Note from Clyrese

A Good Steward of Finances

1 Corinthians 4:2 "Moreover it is required in stewards, that a man be found faithful."

A good steward is faithful.  When a good steward is faithful over a few things God will make him or her ruler over many things.  Doesn't that sound beautiful?  Hey I can't take credit for that.  God said it in Matthew 25:21.

What is a steward.  Webster defines it as one who actively directs affairs.  In the Contemporary English Version of the Holy Bible they refer to stewards as managers on many different occasions.

My ultimate dream for my family and I are to be able to leave my son with a house and money when I pass away.  That is the end dream.  When I was going through my struggle and the way my finances were going there was no way I was going to accomplish my dream.  If I were to die tomorrow my 11 year old son, well at that time 9, would be a homeless orphan with no money.  So I had to get the ball in motion.  

I had to learn to be faithful in managing my little bit so I will be able to manage the big stuff.  

The Banking Experience

The banking experience can be a blessing or a course.  If you utilize it the way well.  Overdraft fees and charge offs are NEVER good.  Did you know that when you are going to purchase a
home and you have over draft fees on your statement within 12 month period it could prevent you from going to get a home loan.  How? Well, that is because it shows that you are not managing your money well and they don't want to risk missed payments or returned checks.  Think about it.  Would you?  Let's say a friend of yours loans another friend $200 expecting payment within a certain time.  That friend (lendee) doesn't pay the other friend (lender) back, or always later for their payments would you be willing to loan money to that friend.  Probably not right?  That is how banks feel about loaning money to people with poor credit and poor money management.  

Also, poor credit and poor banking habits can also prevent you from opening a checking account with most banks.  

Let's Get Real...

My experience with banking has not always been good, its still not as good as I want it to be.  I used to bank with WSFS Bank at a branch here in New Castle, DE.  It was, to me, a very good bank.  Hours of operations were convenient for me and busy life as a single mom.  Banking fees was practically non existent, unless I overdraft my account.  Which was often.  Look my fault.  Then one month, when I reached my breaking point in life I purposely overdrew my account.  I paid my cell phone bill, $300+, and my cable bill $100.  Removed direct deposit so that my entire check wouldn't  be gone so I could pay some of my rent and buy food.  And ran to a credit union and opened an account with them before the charge off appeared on my account.  Yes I did that!  I was COMPLETELY WRONG IN EVERY WAY! Of course I allowed the checks to bounce, account to close, and it went to collections.  I made payment arrangements with the WSFS Bank, and paid it off right away within 4 months.  But, to this day I cannot open a checking account with any bank bank because it takes 5 years for it to be removed from my credit report.  Its been 4 years.  I have one more year. Then I'm free.

I'm hear to tell you options and ways of how to avoid this experience.  Remember my blog a couple weeks ago How to Communicate with Bills I talked about balancing your check book.  That is the best way to stay up to date with your account balance.  The second best is, to me, checking it online through your electronic devices.

Why Credit Unions is a Good Option

1. Lower rates on loans according to the National Credit Union Administration (NCUA).  Banks are charging twice as much in interest on the same type of loans than credit unions.  National Credit Unions Administration states that as of June 28 the average rate is 2.85% on a 36– month car loan, while banks are charging 5.59%.

2. According to the NCUA, credit unions have higher rates on savings.  On ten (10) different types of accounts, such as checking accounts and 5-year certificates of deposits, are higher on average than at banks.

3. Better Credit Card Deals In June, NCUA said the average credit cared interest rates at banks are 12.85% for bank-issued credit cards.  While at credit unions the rates are 11.56%.

4. Credit unions are a little more flexible with lending than mega banks.  National banks require signature loans, unsecure loans that are guaranteed only by a signature.  Credit unions provide the services by just being a member.  To become a member a small deposit is required.

5. Credit unions are convenient. They have made banking very easy with online, phone, and in-person services.  Many of them belong to shared branch cooperative that allows them to conduct business anywhere in the world.  To find a participating credit union where ever you are there is a free app called CO-OP Shared Branch.

6. Credit unions also have lower banking fees.  Each credit union has different rates.  When you research and compare the fees you will find that they are lower than banks fees.

7. Credit unions are much smaller.  When ever you need to call about your account you will more likely talk to a live person, except after business hours.  I have been banking at the same branch for three years now and they are always pleasant.  I get the same treatment at other branches.

8. They are just as safe as national banks.  Credit unions are not members of the FDIC they have their own form of insurance.  You can read more about their insurance in this article from TheStreet.com. 

9. They are .  In the past, to join a credit union you had to be a affiliated with a particular company or organization.  Now-a-days most qualifications are you have to live or work in the same city, state, or county.