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CONSTANCE GUSTKE, BANKRATE.COM
Did you know banks rate 3rd in the number of consumer complaints in relationship to all other types of businesses out there. Third right now and the way they are creating all types of fees I am sure they will succeed at being number ONE. Since we all need to have some type of banking system in our lives it's really time to look at a credit union if you haven't done so already. Credit unions come in all stripes and colors. Currently, there are 7,200 credit unions in the U.S., according to the Credit Union National Association. And not all of them are just community-related.
Your church, university or even your military branch may offer its own credit union with sweet deals and special perks, such as a no-minimum checking account that also pays interest. And that's on top of the better loan rates and fewer bank fees offered by credit unions nationwide, says Bill Cheney, CEO of CUNA. On average, a family saved about $130 last year by using credit unions rather than banks, he says.
"There's a credit union for everyone," Cheney says. "You just have to find it." To see if your university, church or other affiliate has a credit union, visit aSmarterChoice.org. Before plunking down your money, make sure the credit union's deposits are insured by the National Credit Union Administration.
As you research credit unions as a banking alternative, check out these five types of credit unions worth considering.
Tap your alma mater
Are you a university alumnus? Then chances are good that your university offers a credit union open to its alumni, faculty, students and even nearby residents. At the University of Southern California Credit Union in Los Angeles, students,
alumni and staff can use the credit union's three on-campus branches. "Students come here to establish credit," says Gary Perez, CEO of USC Credit Union. "We offer free unlimited checking and premium points on deposits."
Other USC student services include: financial workshops, student loans and account packages. Los Angeles residents are also welcome. And the USC credit union serves University of Maine students, faculty, employees and some local residents. It even offers a "Tunes+" checking account, with which you can earn credits for free iTunes downloads.
Credit unions in the community
Community development financial institutions, or CDFIs, are aimed at low- to moderate-income people. Many
of these credit unions are interested in economic justice, says Pamela Owens, vice president of programs for the National Federation of Community Development Credit Unions. Their designation allows them to apply for special government
grants to open multiple branches in hard-hit communities, she says. They can offer affordable mortgages or special, matching savings accounts. For example, at Alternatives Federal Credit Union in Ithaca, N.Y., a member can get
free tax preparation and a seven-week financial education course. The credit union has offered savings accounts that members can open with a $5 minimum deposit. The individual development accounts also match your savings deposits
when you're working toward a long-term goal, such as owning a home or opening a business.
The Lower East Side People's Federal Credit Union in New York also offers free tax preparation, financial counseling and has offered a savings account that could be opened with just $30. "These credit unions are more apt to work with people, such as helping you with credit repair so you can raise your score," Owens says.
Did you know banks rate 3rd in the number of consumer complaints in relationship to all other types of businesses out there. Third right now and the way they are creating all types of fees I am sure they will succeed at being number ONE. Since we all need to have some type of banking system in our lives it's really time to look at a credit union if you haven't done so already. Credit unions come in all stripes and colors. Currently, there are 7,200 credit unions in the U.S., according to the Credit Union National Association. And not all of them are just community-related.
Your church, university or even your military branch may offer its own credit union with sweet deals and special perks, such as a no-minimum checking account that also pays interest. And that's on top of the better loan rates and fewer bank fees offered by credit unions nationwide, says Bill Cheney, CEO of CUNA. On average, a family saved about $130 last year by using credit unions rather than banks, he says.
"There's a credit union for everyone," Cheney says. "You just have to find it." To see if your university, church or other affiliate has a credit union, visit aSmarterChoice.org. Before plunking down your money, make sure the credit union's deposits are insured by the National Credit Union Administration.
As you research credit unions as a banking alternative, check out these five types of credit unions worth considering.
Tap your alma mater
Are you a university alumnus? Then chances are good that your university offers a credit union open to its alumni, faculty, students and even nearby residents. At the University of Southern California Credit Union in Los Angeles, students,
alumni and staff can use the credit union's three on-campus branches. "Students come here to establish credit," says Gary Perez, CEO of USC Credit Union. "We offer free unlimited checking and premium points on deposits."
Other USC student services include: financial workshops, student loans and account packages. Los Angeles residents are also welcome. And the USC credit union serves University of Maine students, faculty, employees and some local residents. It even offers a "Tunes+" checking account, with which you can earn credits for free iTunes downloads.
Credit unions in the community
Community development financial institutions, or CDFIs, are aimed at low- to moderate-income people. Many
of these credit unions are interested in economic justice, says Pamela Owens, vice president of programs for the National Federation of Community Development Credit Unions. Their designation allows them to apply for special government
grants to open multiple branches in hard-hit communities, she says. They can offer affordable mortgages or special, matching savings accounts. For example, at Alternatives Federal Credit Union in Ithaca, N.Y., a member can get
free tax preparation and a seven-week financial education course. The credit union has offered savings accounts that members can open with a $5 minimum deposit. The individual development accounts also match your savings deposits
when you're working toward a long-term goal, such as owning a home or opening a business.
The Lower East Side People's Federal Credit Union in New York also offers free tax preparation, financial counseling and has offered a savings account that could be opened with just $30. "These credit unions are more apt to work with people, such as helping you with credit repair so you can raise your score," Owens says.
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Obtaining credit for a business with no personal credit check and no personal guaranty is very appealing for any business owner. One might say this is the holy grail of owning a business, being able to obtain massive amount of funding using the business itself as collateral.
There are many steps to building an exceptional business credit profile. Each of these steps is essential in obtaining business credit with no personal guaranty. Here are some of the steps we help our clients take when building business credit...
1. Make sure they start by incorporating their business and make sure they obtain a Federal Tax ID#.
2. Insure they setup a business bank account and that the business name on their corporation papers is the same as on their business bank account.
3. Insure they have a business land-line number that is listed with 411.
4. Insure they have the proper businesses licenses for their business that they need. Have them set up a complete credit profile with Dun and Bradstreet
6. Make sure they pay business bills that report to the business credit reporting agencies ahead of the due date. The earlier they are paid, the higher their business credit scores will be.
7. Clients need to build a solid payment history with many accounts being paid as-agreed or early each month. Building excellent business scores means they have many accounts reporting as paid-as-agreed. Then we have them keep using their credit to build a solid profile.
8. Insure they monitor their business credit file. We have them keep an eye on their scores and the accounts that are reporting.
9. We have them establish a minimum 'low 5' bank rating by establishing and using their bank credit.
10. Have clients open a small business credit line that reports on their business credit profile. Credit lines have high limits and reflect positively on their business reports.
11. Insure they establish a diversity of credit using multiple store and Visa, MasterCard, and Amex accounts.
12. Insure they establish a well written business plan as many lenders will want to see this to approve them for funding. (Business plans are required when our clients begin to seek funding for projects in excess of $200,000 or more).
When our clients work with us we do all these steps for them and more. This way our clients get funding and business credit and grow their business.
There are many steps to building an exceptional business credit profile. Each of these steps is essential in obtaining business credit with no personal guaranty. Here are some of the steps we help our clients take when building business credit...
1. Make sure they start by incorporating their business and make sure they obtain a Federal Tax ID#.
2. Insure they setup a business bank account and that the business name on their corporation papers is the same as on their business bank account.
3. Insure they have a business land-line number that is listed with 411.
4. Insure they have the proper businesses licenses for their business that they need. Have them set up a complete credit profile with Dun and Bradstreet
6. Make sure they pay business bills that report to the business credit reporting agencies ahead of the due date. The earlier they are paid, the higher their business credit scores will be.
7. Clients need to build a solid payment history with many accounts being paid as-agreed or early each month. Building excellent business scores means they have many accounts reporting as paid-as-agreed. Then we have them keep using their credit to build a solid profile.
8. Insure they monitor their business credit file. We have them keep an eye on their scores and the accounts that are reporting.
9. We have them establish a minimum 'low 5' bank rating by establishing and using their bank credit.
10. Have clients open a small business credit line that reports on their business credit profile. Credit lines have high limits and reflect positively on their business reports.
11. Insure they establish a diversity of credit using multiple store and Visa, MasterCard, and Amex accounts.
12. Insure they establish a well written business plan as many lenders will want to see this to approve them for funding. (Business plans are required when our clients begin to seek funding for projects in excess of $200,000 or more).
When our clients work with us we do all these steps for them and more. This way our clients get funding and business credit and grow their business.