3 Reasons to Get a Credit Union Account

What is it that you'd like in a banking partner? Do you think about a bank with more personalized service and lower fees? If so, then it is time to switch your banking option. 

A credit union account is more than just a place to put your money. It's more like your own personal bank. Credit unions are cooperatives, which means they're owned by the people who use them. Hence, you get more say in how things are run.

Credit unions come with many benefits to you, the user. These benefits ensure that you gain optimally from what they have to offer.

Loans are More Affordable

Credit unions offer loans with lower interest rates, meaning they’re much easier for you to pay back. Not only that, but it’s much easier to obtain a loan from a credit union than it is a bank. 

This means that not only do you have the chance of getting the loan you need, but you have a chance of paying it back in a reasonable amount of time. 

This is compared to a bank, which will try every reason to not give you the money you need, and if you’re successful in getting it anyway, charging through the nose in interest rates to make their money back.

No Extra Fee

Most credit unions do not charge fees on accounts and services they provide. This contrasts with other banking options that charge a certain rate for small operational services. 

For instance, you won't have to worry about paying monthly or annual fees for checking or savings account funds. Even better, some have free ATM transactions included with these benefits.

Free Checking Accounts

For starters, free checking with no minimum balance required is one of the most popular perks offered at credit unions. Some even offer ATM fee refunds when using out-of-network ATMs. This is more than what you can get from other service providers.

Better Customer Service

Credit unions are community-based, meaning that it’s likely that you know several people who use the credit union, but also probably a few of the people who work there too. 

As a result, many credit unions pride themselves on providing excellent customer service since they either know the people who come in personally or are familiar with the family. 

You'll manage to get in touch with someone who can assist you immediately. They also offer 24-hour call services where you can contact them for more info on any inquiry you might have.

Higher Rebate on Purchases

You'll get extra points for every purchase when you use your credit union debit card. These points are added to the account by direct deposit or monthly activity. 

This means more savings in return. You can then redeem these points for gift cards and more with the cashback options offered at most locations. Not only does this help financially, but it also encourages better spending habits.

Reward Beyond Money

Credit unions go beyond offering their members monetary benefits. They provide other perks like discounts when shopping online through vendors they partner with, as well as fun activities across all age groups throughout its branches. Many opportunities exist where you can participate and enjoy more.

After reading this, it should be clear where is best to keep your money. Credit unions have revolutionized the banking sector, making it more appealing and trustworthy. 

As a result, those looking for a better financial partner should consider switching to a credit union, where it’s easier to obtain loans, many fees banks put in place are missing, and possible to pay them back, and the community-based structure means you’re treated more personably when interacting with them.

5 Water Heater Problems You Need to Watch Out For

Whether your water heater features a tank or is a tankless model, keeping it in functional shape is critical to its function. When your water heater runs into issues, you may not get the exact level of temperature control you need, which can be particularly frustrating during the colder winter months. 

Keep an eye out for these problems that may indicate you need water heater repair.

No Warm Water

The surest sign of an issue with your water heater is a lack of warm water. When you notice that your system is not producing hot water for your day-to-day needs, you may need to get repairs done. Any number of issues may cause it, ranging from the mechanical to the electrical.

Low Water Pressure

Your water pressure dropping may also indicate an issue. Because your water pressure is also tied to your main water line, the issue may extend outside of your water heater. 

Speaking to a certified professional can help you narrow down the specifics and determine what course of action will best restore function to your water heater.

Discolored Water

Like low water pressure, the appearance of discolored water may indicate something wrong with the water system at large. Though the problem may be localized to your water heater, older pipes and fixtures may also result in discoloration. 

A thorough diagnostic approach will help determine what parts of your water heater will need repair or replacement.

Strange Sounds

Another certain sign of wear and tear to your system is the presence of strange sounds. Your system should be running quietly or silently. Any grinding, whirring, or buzzing sounds may indicate the appearance of damage. 

This is particularly apparent in older systems, where these sounds may appear after years of use. Often, when a system is old enough, repairs are no longer possible, and entire replacements may be necessary.

Temperature Takes Too Long to Change

Sometimes the issue may not manifest in a particularly overt way. The slightest changes to your temperature can be enough to indicate an issue. Water that takes too long to get hot or cold may be a sign of your system not functioning as it needs to be. Speak to a professional as soon as possible to prevent small problems from getting worse.

Preventative maintenance goes a long way in extending the life of your unit. Always take the time to run a regular diagnostic check on your heating system once every three or four months, and call an expert when something is out of the ordinary.

Should You Get Pre Approved Before You Start House Hunting?

Some house-hunters don't talk to prospective mortgage lenders until they find a property they want to buy. Others arrange to be preapproved before or while they hunt for the perfect home. Here are some reasons to get preapproved before you make an offer on the house of your dreams.

Preapproval Helps You Find the Right Lender

Look for the best financial lender for your housing needs before you start shopping for a home. It can take time to compare interest rates and mortgage loans to find the one you want to work with. Sometimes, the monthly payment amount will vary from one lender to another. 

The interest rate might also vary based on factors like your credit score and whether you authorize automatic payment withdrawals. When you find the best terms for a mortgage loan and choose a lender, you can apply for preapproval.

Being Preapproved Saves Time

The approval process takes time and requires documentation, so doing it before you find the home you want to buy can help to expedite the purchase transaction. 

You will be already approved and ready to buy your home without taking the chance that the lender will not accept your application for a mortgage loan. 

If you applied for approval after choosing a home to purchase, the loan approval process can be time-consuming. Prepare as much as possible in advance so the financials will be in place when you make an offer to buy a property.

You Will Know How Much You Can Afford to Pay

Some homebuyers fall in love with a house that is really beyond their budget. They discover that when they apply for a loan and learn that the price is more than they can afford. 

You may want to ask a mortgage broker how getting preapproved reveals how much you can afford to pay for a house before you start shopping for one. 

You will also be aware of your monthly mortgage payment, which can help you to choose a home that is worth the cost.

Homeowners Often Prefer Preapproved Buyer Offers

It is not unusual for a seller to receive multiple offers on their property. You might assume that the highest offer is automatically accepted. 

But many sellers prefer to negotiate with a preapproved buyer who is already eligible for a mortgage loan and adequate funding. This will give you an advantage in the housing market.

Mortgage preapproval is a valuable tool in the hands of a prospective homebuyer. Talk to mortgage loan experts about your eligibility for financing pre-approval.

How House Insurance Can Protect You and Your Family from Weather

Unexpected events such as storms, heavy rains, or vandalism can cause thousands of dollars in property damage. Most homeowners are not always in a position to cover the losses. Here are ways you can protect your home by taking an insurance policy.

Protect Your Home from Storms

One of the reasons you may want to have home insurance is to protect your property from storms. In recent years, the weather has become more erratic due to climatic changes. 

Your insurance can cover you in case of heavy rains, tornadoes, or fires. Home insurance can protect the main dwelling from damages caused by such weather events. If your roof caves in because a tree fell on it after a storm, your policy will pay for it.

Some policies will cover 80 to 90% of the cost. But ideally, you should get 100% coverage for your home. Be sure to review the terms of the policy and what it includes.

Cover for Valuable Items

Property insurance can also compensate for loss or damage to valuables in your home. The policy will cover your belongings or appliances against fire, lightning, or vandalism. 

You can protect precious items from your home, for example, when moving your house. Most property insurance policies will include the loss of valuables away from your home.

The valuables don't have to be within the building. For example, when you damage your portable device while on vacation, you can get reimbursement for the loss.

Protect Outdoor Shed or Greenhouse

You can protect outdoor sheds, greenhouses, or other detached buildings in your home through your homeowner's policy. The insurance covers the deck attached to your house from storms or vandalism.

Ensure Your Home from Liabilities

Depending on the coverage, it may include liability insurance. When someone is injured on your property, the insurance will cover the costs. Otherwise, you will be liable for medical bills that could be thousands of dollars.

The purpose of the policy is to protect you from lawsuits in case of an accident on your property. But it does not include injuries for tenants of the house. In such situations, you will not get reimbursements from your liability insurance.

Conclusively, it is always advisable to have a home insurance policy to protect your home from unexpected losses. However, policies may vary in what they cover. Most providers will include protection from storms, vandalism, and fire. But you ought to take the time to understand what the cover entails.

Top 5 Reasons to Refinance Your Home

Homeowners should consider refinancing their homes if they look to save money on their mortgage or obtain a lower interest rate. There are many reasons people choose to refinance, but the most common ones include paying off debts faster, consolidating debt into one loan with one monthly payment, and unlocking the equity in your home.

Refinancing can also be beneficial for homeowners who want to take advantage of recent changes in tax law by deducting some of the costs associated with refinancing. This blog post will cover 5 reasons why homeowners should consider refinancing their homes.

Save Money on Your Mortgage Interest

One of the biggest benefits of refinancing is that you can save money on your monthly interest rates. Refinancing allows you to get a lower interest rate, which in turn lowers your mortgage payment, allowing you to have more money in your pocket each month. 

Your credit and financial history will be considered when determining if you qualify for a refinance loan and what types of terms and rates are offered. Before applying for refinancing, the homeowner must have all their information together including making sure they don't have any late payments or taxes owed. 

It's also helpful if the homeowner knows how much equity they currently have to discuss options with their lender at the time of application.

Pay Off Debit and Credit Cards Faster

Refinancing your home can help pay off debt more quickly by allowing you to combine multiple debts in to one low monthly payment. 

For example, if the homeowner has a $200,000 mortgage and $10,000 of credit card bills, they can refinance their existing loan and apply any savings towards paying off these debts. 

This is especially beneficial for homeowners who have good credit and stable jobs that will allow them to keep up with payments on their new loans. Suppose the homeowner decides that refinancing isn't right for them. 

In that case, there are other options available, including consolidating your debt into one loan with just one monthly payment or creating a "debt snowball", which allows you to slowly pay off all your debt in order of interest rate.

Uncover Equity in Your Home

Some homeowners are also able to refinance to unlock equity in their homes. This is common for homeowners who have lived in the same house for years and watched home values increase over time. 

To renew their mortgage, these homeowners can use some or all of this equity that has built up over time to help them afford a lower monthly payment without refinancing their entire loan amount. 

Refinancing can be lucrative if you're planning on moving out soon because it may be beneficial to go through the process, even if just for the cash savings alone. Home refinance loan rates are lower than mortgage rates which means you could receive a larger sum of money in your pocket.

Take Advantage of Tax Deductions

Homeowners who have been paying off their current mortgage for years may find that they are in a better position to take advantage of recent changes in tax law that allow you to deduct some of the costs associated with refinancing your home. 

For example, homeowners who have paid off their old mortgage and refinance into a 30-year fixed-rate loan can claim a deduction on any points charged when refinancing. Alternatively, suppose the homeowner has an adjustable-rate or interest-only payment mortgage. 

In that case, they could receive tax deductions for the difference between what is considered "true interest" and what was reported to the borrower's lender by their broker/lender.

Improve Your Credit Score

Homeowners who have good credit will also benefit from refinancing their loans because it allows them to take advantage of lower interest rates, improving their credit score over time. 

A homeowners' FICO score is important when obtaining mortgages, refinancing loans, and applying for other types of financing. Hence, it benefits the homeowner to keep an eye on this number and make improvements along the way. 

If your score isn't as high as it could be, but you feel like you've done everything possible (like making on-time payments), look into refinancing your loan – especially if there is money involved. 

Keep in mind that improving your credit score is a long-term investment that pays off over time.

In conclusion, the housing market is in a state of flux, and many homeowners are looking for ways to make their homes more valuable. 

If you're struggling to make your mortgage payments or think the time has come to trade up, take a look at refinancing your loan. You may discover that it offers benefits you never imagined when you first purchased your home. 

When thinking about changes in the real estate market, it's important to remember that there are also financial benefits available by refinancing a current loan, including lowering monthly costs and improving credit scores over time.

7 Prominent Ways To Save Money Wisely in 2022

Saving money is one of the crucial aspects of building wealth and having a secure financial future. As they say, it is never too early to start saving; saving money provides you with an opportunity to enjoy a quality life.

Saving money is all about how calculative you are, along with the kind of techniques you use to save. Unfortunately, there are a handful of people who have mastered this art consistently.

Through this article, we aim at educating readers who find it difficult to save money, straight forward ways to save and have a financially secure life in 2022:

1. Always plan your expenses monthly: One of the essential things you should start doing as a habit is making a monthly expense budget and sticking to it as much as you can. This method is foolproof, but people avoid it as it is tedious. As you save money by the end of the month, you may use it to invest smartly and watch your money grow with a specific time frame. You may work on your budget and alter it according to your needs, allocating some for emergencies, savings, leisure, etc.
2. Saving maximum money to the best ability: If your monthly expenses are high and you cannot save as much as you want to, it is time to have a robust money-saving plan. You can identify things that you can spend less money on things like dining out or entertainment. Use resources like community events or free memberships. Limit activities like eating out, shopping, and watching movies to once a month. When tempted do an impulsive purchase, hold on for a few days. You may be glad you passed the urge to buy or look forward to saving up for it.
3. Smart investing: Saving and investing a certain amount of money in a recurring deposit is one of the best ways to save money every month consistently. This activity will inevitably make its way into your monthly budget plan. The early you start investing, the more benefits you can reap out of compounding eventually. SIP is another option if you are willing to incur a negligible risk. You can browse the internet for multiple investment options depending on how much and how long you are ready to save.
4. Manage your debts wisely: If you want to be debt-free at the earliest in life, managing them wisely is very crucial. Irrespective of the nature of the loan, you can be debt-free if you incessantly set aside the EMI amount money and make it a part of your monthly budget.
5. Manage your spending impulses: If you can list down all the expenses you can avoid in a month like limited eating out or shopping, it will automatically make it easier for you not to overspend or buy things on an impulse. This will help you to the extent to which we succumb to temptation typically boils down to our willpower. If you see something you like, wait at least a week before buying it, it might happen that the urge to buy that will pass.
6. Plan and eat home-cooked food: Food budgeting and groceries are often a large part of the monthly expense, especially when you live with your family. Planning your meals for the week, making a list of the ingredients, and prepping them accordingly is a great way to avoid wasting food, which saves money. Additionally, you may prevent packaged food and make dressings, gravies, and sauces from scratch. They taste better and cost less.
7. Earn a passive income at home: A single or even two sources of income are often insufficient with the ever-increasing inflation. A great way to earn a passive income is to channel your passion and creativity to supplement your current income. Baking cakes, making jewelry, tiffin services, or even a small online business, etc., are great ways to start.

All these techniques are tried and tested. Let’s start work on building a financially secure life in 2022.

Author Bio:

Aatish Khanna works with the Content Marketing team at Money Club, a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.