Credit
Unions - Once Again Beat the Banks!
A national
survey by Bankrate.com has found that credit unions, on
average, provide better deals to their customers
for many types of loans and investment products than do
banks.
For
example, new and used car loans, second mortgages, home
equity lines of credit, and credit cards are items in which
the credit unions consistently beat the banks. In doing
so the credit unions are again proving their worth to their
shareholders and customers.
Not
all credit unions provide the same products as do banks.
As a point of fact, ATDFCU tailors its products
to reflect membership desires for the highest possible
returns. Therefore, ATDFCU does not offer credit
card services, ATMs or checking services in order to provide
both a better rate of return for investments and lowest
rates on loans for borrowers.
An
example might be in order...
In California, banks surveyed charge from 7.24%
Annual Percentage Rate (B of A) to 4.82% APR (Wells Fargo)
for a $25,000, 15 year fixed rate second mortgage... and
some have additional requirements like deferred loan application
fees and electronic transfer mortgage payments that considerably
increase the cost of a loan. ATDFCU doesn't engage
in those types of practices, preferring instead to make
the loan in a straight-forward fashion, without a lot of "catches".
And by the way, ATDFCU's current rate (available
until Sept. 30st, 2010
for variable rate second mortgages is 3.50% APR.
| Car
loans are another popular service you expect from your
credit union, and once again they deliver! Nationally,
for a new car loan of $16,000 (48-month term), credit
unions betters the banks by an average .60% (8.41%
vs 9.01%). ATDFCU beats the national credit
union averages by a wide margin, offering its members
a rate of 3.50% for a similar loan. |
|
In
short, often the very best in value and service are tried
and true friends, those at the ATDFCU! The paperwork
is held to a minimum, and processing of your loan is done
quickly by people you know and trust. How many banks can
you say that about?
Experience
the incredible personal service each and every member gets
from your credit union. Try it yourself when exploring
ways to free up cash and reduce monthly bills... call your
credit union at 408-365-4444!
Credit
Card Facts and Tidbits
Comments gleaned from credit card experts...
• Do department store cards affect your
credit report?
If the store cards are reported to the major credit bureaus, store cards can
either help or hurt your credit. If your late or missing payments, or have
maxed them to the limit, it'll hurt. On the flip side, if the credit is managed
responsibly, they'll help your score.
• How many credit cards are too many?
There's no pat answer regarding how many cards are too many. FICO scores are
computed on a number of factors. Open the store cards you really need and pay
them off as soon as you can. Interestingly, if you have some on your report
you don’t use anymore, FICO generally recommends you leave them alone
rather than closing them.
• Cash advances from credit cards make for expensive loans!
Most credit card issuers charge a higher interest rate (20% or more) plus a
one-time fee (as much as 5%!) of the amount advanced. Be aware that cash advances
don't qualify for the usual interest-free grace period, so interest accrues
promptly. Additionally some credit card issuers don't apply your payments to
the cash advance until whatever lower interest rate balances you have on the
card are paid-off.
• Credit card issuers may increase APRs if your credit score drops or if
you miss a payment on another credit card
Higher interest rates go hand-in-hand with higher risk and they provide motivation
for cardholders to pay-off their higher APR balances first. Card issuers don't
want a loss on a credit card account so if they see you are having financial
trouble they want to send you the message to pay-up and go elsewhere. Though
seemingly unfair to penalize you in this manner it is permitted under current
federal regulations.
• Watch
Your Credit Lines
They may be lowered without your knowledge. Card companies are moving away
from raising interest rates on risky cardholders to simply reducing credit
lines. Monitor your account to make sure you still have the credit line you
remember; otherwise you might easily go over the new and reduced credit line.
Going over your credit limit at any time can cost money. Stay safe - always
stay 10% or more under your credit limit.
•The
average family owes more than you think on their credit
cards
Based on current industry statistics and consumer surveys the average American
household with at least one major credit card owes $9659. However, given
that 13% of Americans carry credit card balances above $25,000, the median
is about
$6,600 for the typical card using household.
• How high can interest rates go?
The
highest amount of interest that can be charged monthly on
credit card debt is nothing short
of exorbitant. Credit card companies based in Delaware or
South Dakota can by law charge what they want. You might
well see rates as high as 32% to 41%.
• Call your credit union!
The bottom line to all this is manage your credit wisely, and pay no more than
you need to for borrowed money. Call ATDFCU to discuss your
loan needs before you turn to your credit cards!
|
symbol
next to documents indicates that the file is in Portable Document
Format (PDF) which can be read by Acrobat Reader. If you do
not have Acrobat Reader, you can download a copy now by selecting
the appropriate option below or go to Adobe's Web Site at
