When you become an adult in the United States, you encounter many firsts. While in high school, or out of high school, you walk into a bank. It’s time for you to become educated on your personal banking options. You can open up personal checking accounts, and personal savings accounts. Banks can assist you with all your financial needs. However, banks aren’t only used for checking and savings accounts. You can take out various loans at a bank. Additionally, you can do this through banking online. Here’s all you need to know about banking services.
What Kind Of Checking Account Do I Need?
To begin, out of all of the services banks offer, a checking account is one of the easiest, most common product for financially invested Americans. Checking accounts are used for spending and keeping track of your money, quickly and easily. You can use a checking account for your cash, purchasing your everyday necessities, and paying off your bills. When choosing a checking account, you should consider a bank that charges the lowest fees. Some of these fees, depending on the bank, include ATM fees, Account Minimum Fees, and Overdraft Fees.
For ATM fees, if you go to an ATM that is not affiliated with your bank, you will have to pay a few (typically 2-3 dollars). If your cash balance in your checking account is below a certain amount, this is when you’ll have to pay an account minimum fee. Some banks do not do this, so research is required when you’re considering opening up a checking account. Lastly, many banks will have an overdraft fee, so it’s important to avoid transactions like this (even if you do not have a lot of money). All in all, checking accounts are easy to open, and once you do, you’re all set for your financial needs.
You can open up a savings and checking account for your finances, but a bank will also allow you to take out loans. In fact, you can apply for, and take out a home loan, a car loan, and commercial real estate loans. This is important, especially when it comes to cars and homes. Around 80 million individuals in the United States have car loans, and a lot of people struggle with affording their homes (1.24% of mortgages are stuck in delinquency). Loans are necessary.
Car Loans: For most banks, you can apply for a car or auto loan online. Additionally, there is no fee to apply! Some banks, allow you to “lock in your rate.” This is essential because applying early helps you find out how much you can actually afford when it comes to your car. A rate lock also gives you the opportunity to shop around for the best loan for you. After applying, all you have to do is wait to see if you’re approved. Then, you’re all set! It’s important to note that most banks will inform you of their rates for a loan. It’s important to do your research to find which bank will have the lowest rates.
Home Loan: A home loan, or what is better known as a mortgage, is very common for homeowners. When you take out a loan for your home, you basically promise that you will make payments on certain dates for a certain amount of money. This helps individuals who cannot afford a home with the money that they have. In order to get a home loan, you have to go to your bank. You need a copy of your credit report, and this is found at your bank. After you apply, the mortgage lender will then need more information, such as your general bank information, investment statements, and tax returns- just to name a few. Although this process can be stressful, your bank can definitely help!
Commercial Real Estate Loans: Commercial real estate loans are similar to home loans. Commercial real estate loans are for businesses instead of homes. For commercial real estate loans you need to go through a similar process with your bank like you would for a home loan. It is important to note that these loans last for five-twenty years.