wwfcu_9ocxxop6 - Wayne Westland Federal Credit Union

Banks versus Credit Unions – How much Influence does the Customer Have?

November 10, 2010 wwfcu_9ocxxop6

With your bank, do you actually have input in the decision making processes that affect your money? Credit unions have members, not customers, and each of them has a stake in the organization. When hard choices have to be made, they’re not decided by a small group of bank executives. They’re voted on by members. If you’re doing business with a bank, you won’t have that option.

Banks charge more fees for their services. If you’re unemployed and stuck in the middle of a recession, those fees can add up and cause significant unmanageability. For many Michigan residents, times are tough and finances close to the line. It’s not unheard of some bank customers losing several hundred dollars in overdraft fees and service charges. With a credit union, the fees tend to be lower.

How much influence do you have when you’re a customer of a credit union? If you don’t like the way things are being run, you can present it to the board and have it put to a vote. In addition, you have a say in the opening of new branches, mergers, acquisitions, and the selection of officers. Banks don’t offer you those choices.

Times are tough, and financial decisions need to be made after carefully considering all options. If you’re struggling with the decision between a bank and a credit union, set up a list of pros and cons. On your list write down the amount of influence you have in the decision making process, and include the issues of convenience and longevity. With credit unions, members must approve all mergers and acquisitions. Credit unions rarely move or change their name, and they rarely get absorbed by larger entities as many banks do. If you open an account at a credit union today, there’s a good chance they’ll still be there tomorrow … same name, same democratic process.

Credit Unions

Credit Union vs. Bank – Do you want to be a Member or a Customer?

November 5, 2010 wwfcu_9ocxxop6

There are a number of decisions you need to make when you begin your search for a financial institution. One decision is whether you want to keep your funds at a credit union or a bank. It’s a choice of being a member and part owner of a credit union or just a customer who patronizes a bank, a fact compelling enough to at least check out what a credit union has to offer.

In our community, Wayne and Westland banks have benefits, but credit unions offer a more personable style. That’s what the original intent was when they were first established. In 1864, Friedrich Wilhelm Raiffeisen formed the first rural credit union in Germany, roughly a dozen years after the model had been created by Franz Hermann Schulze-Delitzsch in Eilenburg. Raiffeisen felt that the rural model was necessary because small cash flows and limited employment opportunities in the country made rural areas “unbankable.”

This part of the country has taken some significant hits in the past three years and needs the assistance of financial institutions that care about the plight of the people who patronize them. Decide for yourself after you’ve had a chance to evaluate both choices. Keep your eyes and ears open and make sure you ask as many questions as possible.

As a credit union member, you have input on almost every decision that is made. Many people fall behind at some point in their lives, more in the past two years than at any other time in recent history. How do freezing lending and charging higher fees help those who are in that situation? Many financial institutions have done that. Banks base their decisions on what corporate mandates. Credit unions are run by a democratic process. Most of what happens needs to be brought to a vote and then implemented upon the approval of the membership. This gives you, the member, more control over what’s being done with your money.

The first credit union in the United States was founded in 1905 by French speaking immigrants in Manchester, New Hampshire. They saw how the structure worked in Canada and asked for help in setting up one of their own cooperative, not-for-profit financial institutions. Since then, credit union members nationwide have increased from just a few dozen to over eighty-five million.

During the most recent recession, the model has proven to be more durable and sustaining than that of banks. In 2010, one hundred thirty two banks in the United States failed due to financial insolvency. In that same time period, only twenty credit unions failed. Do you notice how often banks have changed their names in our communities? Now look at your credit unions. They’ve remained the same.

Get the Best RV Loan Possible

October 23, 2010 wwfcu_9ocxxop6

The economy has had a negative effect on many things, including the process of acquiring an RV loan. It can be a challenge if you are not familiar with the loan process. What should one take into consideration when searching for the best RV loan possible?

First, think about RV insurance, roadside assistance coverage, license and registration, maintenance fees, and even RV storage if you are not going to be driving it often. These additional costs need to be considered when looking at a loan.

While there are several places to apply for a loan, more often than not, the best route to take is your Credit Union. Credit Unions offer favorable terms to their members at reasonable prices. If desired, an RV loan calculator can be beneficial in determining the price range.

Having a loan secured prior to purchasing can help in the negotiation process. As you begin looking at RV’s, make sure you price shop, ask several dealers about the loan options, and compare.

When looking at RV loans, try to find a competitive rate with flexible terms, preferably a fixed rate and no prepayment penalty. Simple interest loans are the best as you will pay interest only on the principal.

Read and understand the small print. Believe it or not, there are some clauses that will restrict RV’s from moving around. Make sure there is no such clause if you intend on traveling quite a bit.

One final consideration regarding RV loans is the term length. Some loans last as long as 20 years. Numerous interest changes can drastically exceed the value of the RV. If need be, it may be wise to go for a more affordable RV if the length of the loan is amortized to go past 10 years.

Auto Loan Financial Wellness

Simple Assessments Of Acquiring Used Car Loans

October 12, 2010 wwfcu_9ocxxop6

Shopping for used car loans can be as stressful as shopping for the car itself, and they can actually be more complicated than new car loans. Moreover, they pose a higher risk for the borrower.

First and foremost, it is vital you take the time to assess the true value of the car. The lender will come up with their figure of what the vehicle is worth. Typically, this number will be determined by looking at the Kelly Blue Book or the National Auto Dealer’s Associate price. However, never assume someone did this already; look up the prices yourself to ensure the proper value is assessed.

Next, when looking for a used car loan, check the value of the trade-in. It will affect the down payment on your loan and ultimately determine if you have the money needed to purchase the car. For car values, again look to the Kelly Blue Book and National Auto Dealer’s Associate price. In addition, get a quote from another used car dealer, just to be sure.

The final tip on a used car loan is to read the contract closely as there is much more to it than just an interest rate. Everything from prepayment fees to default terms deserve a close review. Each of these details can affect the loan immediately and long-term.

While used car loans can be complex, simple assessments can break down the process to ensure you get a good, well understood deal.

Auto Loan

3 Considerations When Shopping for Auto Loans

September 23, 2010 wwfcu_9ocxxop6

When shopping for an auto loan, there are several items to consider that directly relate to the total cost and general affordability. Below are at least 3 topics to keep in mind:

Interest Rate

This will have a significant impact on the overall cost of the loan. The interest rate can vary widely depending upon the type of loan you seek and how well you qualify.

Applicants with a better credit score and lower debt to income ratio normally qualify for a lower interest rate. However, people with marginal credit scores can still receive competitive interest rates. Credit worthiness is a strong indicator of the risk to the lender and the ability of the individual to repay the loan.

Often there are special programs offered with interest rates as low as 0%. However, this type of loan is basically a “teaser” rate with the effective interest “baked” into the loan.

In determining the best interest rate available, you should shop around. However, keep in mind that if you apply to several places and a credit report is pulled too often, it can negatively impact your credit score. In many instances you can know the interest rate without actually applying for the loan.

Another factor that influences the interest rate is the amount of equity in the vehicle. Generally, a lower interest rate should correspond with additional money put down on the car.

Loan Terms

This is the length of the loan. Typically, for an auto loan, the terms range from 36 to 60 months. While a longer term can lower the monthly payment, you will end up paying more in interest over the life of the loan.

The amount of interest you pay is determined by the interest rate that applies to the loan. These two factors are very much intertwined and directly impact the total cost of the loan.

Fees and other details

Some auto loans require fees such as a credit report fee or administrative fee. Make certain you understand all fees associated with the loan. You should also check other details of the loan, such as the option to pay the loan off early. Some loans carry a prepayment penalty, which means that you are charged a fee if you decide you want to close the loan out before the end of the defined term. In summary, make certain you understand all fees associated with a loan to avoid unexpected costs.

Auto Loan

Car Loans – Still Many Options Available

August 30, 2010 wwfcu_9ocxxop6

Given the problems with our economy, it is generally more difficult to obtain car loans these days. However, many options still exist, and most people who want to finance a car are able to do so. Here are some reasons why you can finance that vehicle you desire.

Credit Unions have realized that it is important to provide the lowest interest rates possible to their members and the community. In addition, historically low interest rates from the government provides further incentive to make these loans available to consumers.

The terms and interest rate you can expect to pay has a lot to do with your qualifications. The amount of down payment on the vehicle, your credit score, and income will greatly impact your rate and available terms.

Generally, a new car will allow you to qualify for a loan with extended terms. This will lower your monthly payment but require you to pay more interest over the life of the loan. If you can afford it, consider the shortest possible term.

Interest rates can vary greatly. Unfortunately, someone with a poor credit history normally has to pay a much higher interest rate than someone with excellent credit history. This can significantly change the monthly payment.

If you want to keep your payment to a level you are comfortable with, you may need to either put more money down or look at a lower cost car. Do not get involved in a payment you honestly feel you can’t afford.

Many new cars have financing programs directly through the manufacturers and/or dealers. With car sales still at relatively sluggish levels, there are many attractive deals out there. You can find ultra low interest or no interest loans, cash back, or other incentives. Usually the most attractive features are difficult to qualify for through car dealers. You should consult your Credit Union first so they can find you the best interest rate and show you the different financing options that are available.

If you prefer not to lease or purchase a new car, then a used car may be the perfect option for you. Credit Unions specialize in used car loans, and just by giving them a call they can save you time and money by providing you with a pre-approved loan amount. This way you are able to shop for a car that you can afford.

Home Loans

Home Equity Loans May Still Be An Option For You

August 15, 2010 wwfcu_9ocxxop6

The housing bubble suffered in our country these past few years has affected the number of issued. However, many homeowners can still qualify for these loans, and they can be an excellent means of financing. Below are some key points to keep in mind.

How Much Equity does your House have? A major problem for many homeowners is that their homes are worth less than the mortgages they hold on them. This situation is called being underwater, and it’s a serious problem.

However, you may have sufficient equity in your home to qualify for a home equity loan if the current value of your home is sufficiently higher than the mortgage amount you currently hold.

While most homes have suffered a drop in value over the past few years, there is often sufficient equity available in the home to enable lenders to issue home equity loans. This is especially true if you own your home free and clear.

Keep in mind that lenders will normally be very conservative in the appraised of the value of your home. In many cases you could sell your home for a higher amount. However, the appraisers are trying to minimize the risk by assigning a conservative value.

Your interest rate and terms are based on the amount of equity and your credit qualifications (credit score, income, assets, etc.). Financial institutions have tightened up their lending standards, but recognize that this is still an excellent area for them to focus on, given the historically low interest rates.

Home equity loans can benefit the consumer by making much needed cash available for items such as home improvements, school tuition, medical expenses, etc.

Our economy is dependent on consumer confidence and the desire to spend money on goods and services.

Shop around. The first place to try for a home equity loan is your local Credit Union. The qualification process is typically easier and faster. Some Credit Unions are more willing to make home equity loans than others.

Be sure to check out your local Credit Union to find the best situation for you regarding rates, terms, and costs. These can vary significantly, but must be an accurate estimate by virtue of the truth-in-lending laws.

Financial Wellness

Planning Your Financial Success

January 22, 2010 wwfcu_9ocxxop6

Accel has been assisting individuals for more than 40 years. They are a team of highly qualified individuals and can give personalized answers to your individual needs.

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