Banking With Bad Credit
If you have bad credit, then banking and using financial products can be hard. However, there are ways that you can bank with bad credit and still get the features that you want. Also, if you have good credit there are some actions you can take that will easily ruin your credit score and reduce your ability to get the deals that you want. Here is some advice on banking with bad credit, and how to make sure your credit rating isn’t affected by your banking decisions
Disputing your credit report
One way to ruin your credit rating is to dispute all of the items on your credit report. Although disputing items that you know to be wrong is a good idea, some people try and dispute all items because unless the agency responds within 30 days they have to remove it. The problem with this is that if all the items on your report are removed, a bank or lender doesn’t know if you are a good or bad borrower. They will not take the risk and so you will be left unable to get the financial products that you want. To avoid this, only dispute items on your credit report that you know to be inaccurate or false.
Not paying bills on time
Another way to hurt your credit rating is to pay your bills or bank fees late. If you do this then your credit report will show that you are unreliable, and the interest rates and fees that you are charged are likely to increase. Although it isn’t always possible, try and pay your bills on time. Using an online bill paying system can help you to keep track of when you need to pay.
Bad credit affects your banking
If you have bad credit, then it will affect all aspects of your banking. Your bank is likely to be much tougher on you if they know that you are unreliable or have bad credit. You will be charged higher rates, and you will have limited access to features. Having bad credit will reduce the chances that you can get a competitive credit card and loan from your bank. Although you can still use a bank, having bad credit will harm your ability to use your bank to the fullest.
Improving your credit
There is no easy way to improve your credit, and the best thing to do is to simply pay your bills on time and then when you have the opportunity to borrow, do so cautiously and make sure you borrow only enough to show the bank you can be relied upon to pay the money back. If you are with a bank a long time and show them you are reliable, then you are more likely to get a better deal.
Switching banks
If your credit problems are behind you but you still think that your current bank is giving you a poor deal, then maybe it is time to switch banks. If your current bank won’t reward you for your loyalty, then a new bank might reward you for switching over to them. Even people with bad credit are welcomed by banks as new customers, and so it pays to regularly shop around for the best deals. Although banking with bad credit can be tricky, if you stay financially stable and are willing to look around for a good deal then you will get the level of service that you require.
Peter Kenny
http://www.articlesbase.com/finance-articles/banking-with-bad-credit-59350.html
What’s the difference between banking with a regular bank and credit union?
I was suggested to get a saving and checking account at a credit union and there is one in my city called american's first credit union,my question is what is the difference between banking at a regular bank and a credit union?
on the surface there is no difference — but since the credit union is a member ship normally they are easier to get a loan with better financial rates!!!
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http://www.affinityplus.org/member/cr_vs_bank.asp
This site explains it all in columns (easy to read and under stand)
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Credit unions are not for profit. That is, the people who have accounts there own the credit union, so they typically have lower fees, higher dividend (interest) rates on deposits, and they have very competitive loan rates. For those with a lot of money, they get some of these perks from banks, but for the rest of us it is nice to be treated fairly.
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The difference is mainly that a bank is much larger and has much more in the way of assets (and therefore, theoretically, less likely to be in danger of folding and taking your money with it).
Also, most if not all credit unions do not get rated by Standard and Poors or Moody's or other grading facilities to show their strength. It costs a lot of money to do that and most Credit Unions don't have the asset base to do it.
Also, credit unions, not having the rating, will pay more for the money they buy (yes, banks buy money to loan and invest with, etc… when you give them your money for, for instance, a time deposit/ certificate of deposit/ term deposit, whichever term it uses, they are in essence "buying" the money from you for a period of time, and they use it to loan out to earn interest) than rated banks, which is why they can offer you on the whole, higher interest rate returns on your deposits.
This all isn't to say that the credit union isn't safe. It is, however, owned by members, not shareholders, and is generally much smaller.
Hope this helps!
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10 years working in the banking industry
From your standpoint as a consumer, there is very little difference between a credit union and a bank when it comes to basic financial services such as savings accounts, checking accounts, auto loans, mortgages, credit cards, debit cards, etc. To join a credit union, you must fit in the "field of membership" — for example only people who work at Motorola Employees Credit Union can join it. Check with the credit union in your area to see if you can become a member. Here is a resource that can help you find a credit union to join:
http://www.creditunion.coop/cu_locator/index.html
Credit unions are not-for-profit financial cooperatives. They are regulated by your state's department of financial institutions or the National Credit Union Administration. Deposits are insured, just like at a bank. So you don't have anything to worry about.
Hope this helps. Good luck.
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