Working as a Phone Branch Supervisor at a Credit Union I get asked a lot of questions about finances, credit, balancing, budgeting etc., so I decided to compile a list of the most common asked questions. However, that list turned out to be about 20 miles long so I’d like to break it down real easy style for you. I’ll post credit FAQ’s and budgeting FAQ’s soon. This “edition” will focus on the basics; financial institutions, checking, and savings.
Q. How can we research to find the best financial institution?
A. This question is asked more often than any other question. You can Google the question but it’s mainly based on the rates not services. When asked that question I ask them “what do you hold of most value in your financial institution? Insurance coverage, interest rates, community involvement, location, etc.?” Then I suggest reviewing local credit union and/or bank websites in their area. Often you can test out their online banking (most sites have demos), check their locations (branches and ATM’S) and if something doesn’t work for you cross it off your list. Read their mission statement. It’s the creed the institution lives by. If you agree with it you can feel comfortable in knowing your needs will be handled the way you’d like them.
Q. What is the difference between banks and credit unions?
A. This question is my favorite. This is a BIG topic. Here is a link that (in my opinion) explains it best. http://www.nwcu.com/about_us/cu_vs_banks.aspx
Also, check out this link out for a quick breakdown:
http://www.nedap.org/cusbanks.pdf
Q. Is there a savings plan that will benefit us greatly?
A. I can’t answer this better than how Brian did in his post Specific Savings. It’s genius.
Q. How does overdrafting affect my credit score?
A. It doesn’t. The only time it will affect your credit score is if you leave your checking in a negative status and the institution closes out your account and reports it as a collection item.
I hope these help you or someone you may know. If you have questions about this post put them in the comments section. Have a question of your own that you’d like to ask and didn’t see here? Put it in the comments section as well; I’ll put them in future posts and answer them to the best of my ability or find someone who can (because while I do have mad skills, I don’t have ALL the answers).
If you’d like some more info on this topic here are some snazzy research tools:
http://www.you-belong.org/reasons-you-belong-oregon-credit-union/
http://www.creditunionsonline.com/
http://finance.3debtconsolidation.com/creditunionsversusbanks.html
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