0008 Stay Away From Banks and Go To Credit Unions

hello this is lisa phillips thank you for tuning into affordablerealestate investments.com and this session is going to be on staying away from the banks and instead going with credit unions now before let me start I have been with very many banks probably like all of you guys. Wells Fargo, Bank of America, Chase, BB&T, PNC lot of banks over the years and they are terrible, for all the fees that they make you pay and all the convenience they give you they take it out by not lending to you, barely giving you a credit card with the credit limit that’s worth looking at and they deny you loans um if anything go with a community bank, I am with a community bank now here locally in Virginia that’s been excellent, now they still aren’t as liberal they’re very conservative so the same car loan that I’ve been able to use three times with three different credit unions I have not I can’t use with that community bank because it’s more than three years old so I mean I like this community banks I’m going to keep it they’re not all bad but the big banks terrible, every time I’ve gone in there it’s almost like you should feel honored they let you ask and why should I feel honored when you let me ask, you say NO, this is before my staged this is before a foreclosure when I had super high 750+ credit um during I didn’t really ask cuz I knew where that was going and even after even now where credit is definitely up there above the seven hundred mark again and clear history for the last five years and they’re still like no, not at all, no increase in your credit card we gave you no loans don’t even ask, and for all this times every single credit union I have been to has been able to work either with personal loans or with the title loans or with getting credit cards so I just want to say personal loans can be a really good way of funding your funding your home improvement project because it’s up to $40,000 sometimes $50,000 with the right places and the interest rates can be as well as two percent or three percent all the way up to 18. But up to mostly it’s unusually normal around ten, nine or ten . That’s a really good rate to get thirty thousand dollars on if you need to make an investment and most of it when I asked because uh I do ask about what the numbers, what scores get what, honestly can have as low as 600 which means you basically pay everything on time, every now and then you get a late fee or maybe have a high limit but very dutiful for most people. And another tidbit that I have learned when doing this, is that be proactive about who you go with before you even go to the credit union before I sign up now and this is probably why my credit has gotten so well you know you have three credit bureaus that people that people report your credit to. Experian, Transunion and Equifax. Well everyone has one that’s really good one that’s always behind it so it because of what type of information how they do their own private calculations, my worst one is Experia, and my best one is Equifax some of the because my foreclosure that I had, the second mortgage didn’t report to Equifax but reported to Experia Experia has a worse number than my Equifax as time goes by it gets farther and further away from what happened two and a half years ago, however, because of that Equifax and because they didn’t report maybe they didn’t want to pay the extra money to report to the other agencies it was always like a 30 to 40 point difference that was a 30-40 point interest rate depending on who you used what now sometimes people report to equifax they don’t report to Experia. Some only report to Transunion you know this this is a part of having credit that you understand that certain people only report to certain agencies so that causes a lot of that stability and inequity in what your score is with each one now because I loved Equifax so much for the last year and a half when I went to a bank and I asked for a loan I would ask them first what credit bureau do you report to or draw from to do your loan approvals. I only had one credit union who was hesitant about telling me and I didn’t know that wasn’t a credit union that was my community bank and I didn’t even ask them then although I’m pretty sure he may have called me back and told me Equifax if they say Experia, I don’t sign up it’s not worth it that extra 30 point difference that’s my extra 30 points it’s my interest rate that’s my monthly pocket and there’s nothing illegal about you asking people how much or what credit bureau they’re going to report to what’s illegal about that that’s just you being more proactive than someone else it doesn’t say anything be a squeaky will speak up and ask it’s not like they can withhold that information for you it’s your information it’s your credit taking that ownership meant that I got more favorable turns and that in case built up my credit history even better which built up my you know which lured my debt income ratio all that plays into it because I am strategic about it and I make sure if I did ask for credit they were going to the credit bureau that I prefer and sorry if there were some credit news that went to experian and I’m like I’m not signing up so that was one of my main questions usually I call before I even did this, when I was looking for a new place so take that under advisement stay away from big banks I know they’re convenient but they’re really not worth it because you don’t get anything out of it the only big bank i have now is PNC which offers really great customer service and free checking their one of the last few free checking places without having a minimum I don’t like having a minimum of 1,500 or 2,000 in a checking account because that money needs to go in and out to fund different investments until you know it’s all accumulated so um the personal loans are easier to get with the credit unions and be when searching the credit unions just make sure you check find out what is your what’s your good score which credit union has your good score and if you specifically target only those institutions who are asking for loans you’re really going to see an uptick in all of your credit scores and it’s something that probably now that I said it makes a ton of sense however you know not everyone sees that, so no it, feel it, take ownership of it, it’s something I just sort of naturally did because I was really protective of my credit after my foreclosure I was trying to build it up so much I would go like who are you pulling from because I knew it was in there knew what was in all of my credit files but it’s something I’ve learned and I’ve used and it’s excellent now all my numbers are basically up because I’ve been using that strategy going to the guy more favorable to give you a loan with the greatest rate and everyone else just follow suits like a bunch of sheep so and that’s how it works deal with it except it just learn how to go to the people who are more favorable towards your turns and that is why I named this cool podcast, stay away from banks, go with credit unions, use personal lines of credits and use credit cards if you get if you have a nice low interest rate to fund some of the projects some of the people wouldn’t say that but I say that kind of debt is good debt because it’s getting paid off by something specific it’s not me buying a truck that goes in a hole that I can never get anything from if you pay for repair in a house or a rehab or home improvement with these lines of credit you know not only is it tax deductible so you’re going to get half the value back come tax season, from what they take out of our paycheck which I’m sure is a lot um but it’s also paying for something that’s going to give you something back, you’re paying to get this air conditioner fixed so that you can continue making eight hundred dollars a month in rent on top of what you make out your regular job, I’m okay with you sitting for that, I do keep them very separate my business lines of credit I do not touch because I keep track of what I pay off with the rents i receive versus my personal have like one personal card and it’s like a US airways card so i can uh you know you know get mad get points you know American you know an American Airlines one of those type of cards so I can get points and I pay it off like clockwork so my personal I’m not for credit, I either have cash or I don’t get it however for my business, I do use credit to pay things off but like I said with financing terms and even your regular credit card from the credit union will be like a 12 months for 4% APR if paid in full before 12 months, use that write that check use it for the rehab if you need to and let eight months to 10 months or say 10 months of 800 coming in eight thousand dollars more than enough to pay off the fifteen hundred dollar bill that you had at that time before the twelve months are over and it or if you could you could probably save that up in your own paycheck and pay it 12 months from now. so thank you for tuning in to the Affordable real estate investments where I teach you how to find affordable investment realty with confidence, hard work and a little peace of mind. Thank you

54 thoughts on “0008 Stay Away From Banks and Go To Credit Unions

  • This is a fabulous podcast series.  I am a big proponent of credit unions.  Every one I have ever joined, it costs $5 to join.  Many times, I have joined and received (or applied) for a loan in the same day.

  • Awesome, awesome tip about choosing to favor the credit union that reports to your prefered beureau, I would never have thought of that and it makes perfect sense! My big brother pointed me to your videos yesterday and I have been watching them chronologically all day today…all I will say is that I will love him forever because of this 🙂 

  • You are truly a brilliant woman. I'm learning so much from your experience. Thanks for sharing. I'll be following you for more.

  • Hi im a first time investor and I need money to purchase a already rented property I need 13k to make it happen but idk where to get it please help my dreams come true

    Also can I still get a mortgage on a property this cheap?

  • Very good info on how to delay rehab costs with promotional annual lines of credit. By the time the one year is up you will have the rents to offset it making it no money out of pocket on the rehab side. Good stuf.

  • Hey Lisa, great vid as always. I have a question for you. You mentioned in another video about a rental property you bought out of state in Columbus, OH. I'm considering buying a rental property in Texas while I live in California, just wondering when you have to travel back and forth to Ohio to check on the property, doesn't that eat on your cashflow? Because I would imagine you have to travel there physically to check on completed repairs etc every now & then, right?

  • Hi Lisa, which property management company do you use for your rental in Columbus, Ohio? Thank you so much in advance. Love your videos! So inspiring!

  • I like this video. I just had a Bank of America Account that they closed for no reason.I asked them why and they said it was a business decision….pissed me off.Im searching for a credit union

  • Really enjoy what you have to say keep up the good work.  I'm up to eleven and looking to purchase another in the next month.

  • do you tell the credit union youre borrowing the money to buy a small property. are you referring to a signature loan?

  • Im looking to buy my second multi family house but the bank I went to wants 25% down for a $30,000 loan with everything added up came out to $13,000. I have about half that amount. Should I try to get a personal loan instead? My credit is over 700 on all three buirals. or should I try to get another loan from another bank to total that amount?

  • Oh wow, I did not know you lived in VA. I also live in VA and I'm actually looking to invest into buying a house and renting them out. I'm watching your vids and they are super helpful- if you get a chance, please reach out to me. I could use your expertise 🙂

  • Girlfriend, have you tried Discover Bank (Discover.com)? I at the end of the process getting a loan from them to get started in the property game.

    Keep up the good work. ;-))

  • chase gave me both a car loan and a credit card, which I was shocked, I have joined a credit union this yr too

  • Thanks for the video. You remind me to ASK QUESTIONS! No harm in asking questions when you don't know and want to know something. Because banks tell you as little as they can.

  • Should I move all of my money to a credit union? I am talking about 50k. Is that easy to do so or the bank will give me a hard time?

  • you are amazing! I am buying my first 3 bed 2 bath low income property in Kansas City, Missouri and you got a long term subscriber in me. Going to use this knowledge for good of course lol

  • I agree I been stop fucking with banks I hate them and my credit union I had open but never used for 7 years I need a dependable car and had 1k but from the time I called the bank to finding a car and signing the papers for my car it took an hour lol from that point I said no more banks for me

  • Wow this was excellent info! I will definitely be checking out your other videos. Unfortunately, 6 people who gave this a thumbs down have poor taste.

  • I bank with Alliant credit Union got checking, savings, CD, and credit card with them for the past 3 years no complaints only use banks for loans, credit cards and atm access if needed

Leave a Reply

Your email address will not be published. Required fields are marked *