Debt Consolidation: How to Move your Money

Many Smaller Banks and Credit Unions Offer Good Credit Card Rates and Lower-rate Financing

Many large U.S. banks offer great online services. However, it doesn’t hurt to look at local banks, where you can also find good deals with respect to low-interest loans and better credit cards rates. If you’ve paid down or paid off a debt consolidation loan, then you might be interested in taking advantage of the rates at a local financial institution and therefore moving your money from a bigger bank to a community bank or credit union.

If You’ve Had to Consolidate your Debt, you May Benefit by Looking at the Credit Cards offered by Smaller Banks

Local banks and credit unions frequently charge lower fees on charge accounts, which can feature interest rates of four percent. Therefore, one of the best amenities provided by banks locally are lower interest credit cards – something which will, no doubt, be of interest to you if you have had to go through the debt consolidation process.

Take a Look at the Services and Financial Packages Offered by Credit Unions As Well

In particular, local credit unions typically offer credit cards that come with APRs that are about twenty percent lower than credit cards advertised by major banks. What’s more, the credit cards offered by credit unions usually charge lower over-the-limit fees and late fees as well. In many instances, you’ll find such charges will cost you half of what you’d pay at large national banks.

A Move that May be to your Liking

Legally, federal credit unions are not permitted to charge over eighteen percent interest on credit cards. Plus, many small U.S. banks offer credit cards with some of the best credit card rates in the country. So, if you’ve had to go through a debt consolidation where you’ve been forced to combine a number of high-interest credit cards into one lower interest loan, choosing to switch your account to a smaller local bank or a credit union account may be a smart move.

Other Amenities

Not only can you get better credit card rates at local banks and credit unions, you usually can obtain better rates for auto and home financing and personal loans too. These financial institutions also typically give more latitude to borrowers with less-than-perfect credit scores as well.

Check out the Financials

Just make sure, if you make the switch to a credit union or smaller financial institution, that your money is FDIC insured and that the credit union or bank has a strong financial statement.

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