In today’s world, almost everyone holds a bank account. Banks offer different types of accounts to meet the needs of individual customers. Most banks give you the option to choose between five different types of accounts. The choice is up to the customer, depending on his or her needs.
Here is a brief description of each types of individual bank account.
Savings account: Banks across the world offer savings accounts. The intent of such accounts is to encourage savings. Whatever surplus you have in hand, deposit it into your savings account. The interest that you earn on a savings account is more than what you would earn from a checking account. While can make deposits and withdrawals, you cannot write a check. Note that there could be a fee in case your balance falls below the stipulated minimum. A record of transactions in such accounts is entered in a passbook or can be provided to you in a monthly/quarterly statement.
Basic checking accounts: These are no frills accounts which offer you certain basic functions. The cost of operating such an account is very low. You can write checks through this account. However, there is a restriction on the number of checks that you can write in a month. Also, such accounts do not pay any interest.
Interest bearing checking accounts: You enjoy the privilege of a host of services including writing unlimited checks. But all this entails a higher cost. The interest that is paid on the account is dependent on the quantum of balance in the account. In case the balance falls less than that stipulated, a monthly fee is charged. You can write a number of checks in a month and avail all the services attached. If you choose to open this type of account, you will also earn some interest.
Certificates of deposit: This type of deposit is held for a specified period, hence referred to as Time Deposits. Ranging for a period from 3 months to 6 years, these accounts offer a high rate of interest. The high interest rate is compensation for the time your funds are locked in. A longer deposit duration fetches you higher interest rates. In case you need to withdraw your money before maturity, you will have to pay a heavy penalty. Thus, you will not only forgo your interest amount, you will also lose some of your principal amount.
Money market deposit accounts: Such accounts invest your funds in the short-term debt market. This include, but are not restricted to Commercial Paper, Certificate of Deposit and Treasury Bills. To earn interest on such an account, you need to maintain a high balance. The interest rate on the money market deposit accounts is higher that the rate of interest on checking accounts. While operating this account, there is a restriction imposed in check writings. Three checks and six total transfers is all that you are entitled to per month. All of the above five types of accounts are secured by FDIC to the extent of $100,000.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.