Companies To Use : Good Companies Are Easy To Find
#1- Credit Unions: Credit unions charge lower fees and are typically
a better deal than banks. They are often smaller and can provide better
service. Get to know your credit union branch manager. They can help you
improve your credit and financial situation.
#2- Banks: Banks offer more services than credit unions because they
are much larger (in general). Banks can be more convenient to use because
they typically have more locations.
#3- Credit Cards: You do actually need some credit cards to help establish
your credit rating. Get two or three cards with reputable banks. Use a
small portion of the available credit (10% or less) and pay on them for
6 months. It will help to establish your credit rating. Pick good cards
from the beginning because the more the account ages the higher your credit
score will raise. It is not a good strategy to pick a couple cards and
then get new ones from different companies next year. A good credit card
will have a solid fixed interest rate less than 12% and no annual fee.
#4- Brokerage Accounts : Open an online account with Fidelity Investments,
Schwabb, or Vanguard. You will get a much better rate of return on your
money than a savings account. Savings accounts are not investments. Savings
accounts are merely for short term cash flow strategy. To invest, you
will need a brokerage account. Full Service brokerage companies like Merrill
Lynch will not give you the time of day unless you are wealthy. In addition,
the fees and expenses are much higher. Companies like PrimeMerica and
Edward Jones give full service and cater to the middle class. You will
pay dearly for using one of these companies or one like it. The rule of
thumb is that if you are not wealthy and they are coming to your house:
WATCH OUT! Their fees are out of sight and hidden. It’s better to
learn things yourself and go to a low cost brokerage firm like Vanguard.
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