When it comes to choosing a bank account more options have become available to the public. Large banks still rule the scene but many people have moved on to using credit unions and online banks for their banking needs. According to a survey by the Federal Deposit Insurance Corporation (FDIC) many people have also decided to go “unbanked”.
Taken in 2011, the released survey findings note that 8.2 percent of American households do not have banking accounts, that’s about 10 million households. Over 29 percent of households do not have a savings account and 10 percent do not have a checking account. These numbers have increased since 2009. Unfortunately unbanking and underbanking has negative side effects you may not realize.
While your accounts will not be reflected on your FICO score, many lenders will ask if you have a checking or savings account. Having open and positive accounts reflect favorably on your finance skills. A positive checking account shows you know how to manage your money properly. A positive savings account might show a lender that you are saving for your future. If you or your child plans to file the Free Application for Federal Student Aid (FAFSA) then be prepared to answer questions about your banking habits as well.
Savings accounts are also beneficial as they can better help you save money. You might be less inclined to use payday loans, borrow money from friends, or overspend when you set money aside in your own account. You’re more likely to hold yourself accountable for your spending.
You could also save time and money by paying your bills online using your bank account information. Stop wasting time paying bills in person and can keep track of the payments you made using onlinebanking. Many banks have also enhanced their websites in an effort to provide consumers more ways to view where their money is going.
Banking doesn’t have to mean losing money, many people choose not to use a bank because of the fees associated with it. Just as you might with a lender, shop around for a bank that might is right for you. Don’t let not having a banking or checking account hold you back from getting the money you need. AmOne can help you find a lender that fits with your financial situation. Whether you need a small business loan, personal loan, or debt consolidation loan, get your questions answered.