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Banks, Credit Unions, Cash Advance Agencies - Which One Do I
Choose?
With so many choices for financial institutions (ie. banks,
credit unions, cash advance agencies, etc.) it can become
difficult to understand which will best meet your needs.
“Each institution has its own list of benefits. Working for
banks has provided very rewarding experiences,” said
Reginald Temple, vice president, director of Community
Development at First Federal Bank. “The key difference
amongst financial institutions is the relationship that is
created when working with a bank or credit union.”
Cash advance agencies allow consumers to cover short-term
bills and protect credit reports in times of financial
emergencies. These businesses specialize in providing quick
financing and often lack of other financial services such as
checking or savings accounts.
“Establishing a relationship with a bank or credit union can
help individuals that are still learning how to manage their
finances avoid becoming dependent on cash advance services.
By taking the time to learn about an individual’s financial
needs, bank employees can recommend a wide variety of
lending and financial management products,” said Temple.
Interest rates and fees for payday loans are typically
higher than a standard bank loan. Failure to pay a loan in
full by the contracted time may result in doubled fees. Most
banks and credit unions have more options for borrowers such
as products designed for first-time borrowers, those with no
down payments and individuals that earn low to moderate
income. If nothing else, a financial institution can provide
guidance for managing finances, saving for the future and
avoiding financial pitfalls.
Before signing to apply for a loan it is important to
educate yourself. For guidance on managing your finances you
can contact First Federal Bank at 1-877-367-8178 and ask to
speak with a local lending expert.
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