Does the difference between a savings account and a checking account confuse you? Not sure what account suits your needs? Let us help. Before we start, here are a few key points to remember –
Checking accounts are meant for recurring usage. This account is ideal for daily transactions and lets you issue cheques against the checking account. However it offers very little interest.
Savings accounts are established to encourage less usage and are ideal for saving money over a span of time or to establish an emergency fund. These accounts charge heavily after a limited number of transactions. However, they offer larger sums of interest over the financial year.
Both accounts have multiple pros that support different needs, Here are a few key points to keep in mind before opening either account.
Account fees: An important factor to keep in mind is the fee that may be applicable when you open either account. A checking account for instance allows you to access funds at your convenience. However, some banks may impose a minimum balance for the account. This type of account permits functions like overdraft and external online transaction facilities. A savings account limits the number of transactions and only allows you to withdraw a portion of the money deposited in the account. This account limits transactions to limited banks. The account holder must transfer the funds to a checking account before withdrawing those funds. This is in order to limit access to the funds.
Interest rate: Checking accounts generally yield little to no interest. On the other hand, savings account accumulates interest. The interest rate on savings account differ between banks and depend on the time span and amount invested in the account.
Online transactions: Checking accounts are easily accessible online. They allow the account holder to make most bill payments and purchases online. Savings accounts usually do not permit these transactions. However, they allow the holder to transfer funds to a checking account in order to access these functions.
Restrictions: There are little to no restrictions on withdrawals on checking accounts. This means the account holder is free to access their account any number of times in a day or month. However, savings accounts usually restrict the holder to 3 to 6 withdrawals in a month. There are no restrictions on depositing funds into either type of account.
Availability Of debit cards: Checking accounts often come with debit cards that also act as ATM cards. This eases access to funds. Savings accounts usually do not offer the facility of debit cards. Account holders must usually conduct transactions either in person, online, or by phone.
It is possible for a person to maintain both a checking account and a savings account. While the former grants ease of access to funds, the latter encourages the account holder to save. Checking accounts are meant to help those who require frequent access to their account. Savings account offers account holders higher interest rates. They are usually used to set up a college fund or emergency fund and encourages long term investments.
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.