 |
Too many African Americans still don’t have a relationship with a banking institution. In black communities, 24-hour check cashing, payday loans and other forms of check services are prevalent, but they don’t offer the same benefits that a bank or credit union can give to a customer. John Johnson, of Bank of America, has long advocated African Americans learn more about why and how operating with a banking institution is beneficial to both their long-term and short-term financial well-being. Here are the five biggest reasons he gives for dumping those predatory check-cashing services and opening a real account with a real bank.
- It’s a relationship. “[There’s] someone you can go to [that can] help you grow your finance, no matter what your goals are- retirement, vacation, personal savings goals.”
- Other services are expensive. “[With] check cashers and payday loans, you’re paying someone to loan you your money.”
- Convenience. “You have access to your funds whenever you need them, via telephone banking, ATM banking or online banking. You can transfer funds from your account to someone else’s account at any time of the day. You can access your balances [and] you can see your transactions.”
- “It really gives a detailed account of what you’re doing with your money. It’s about awareness. At the end of the day, [it’s about] having someone that you can call and say, ‘you’re my personal banker, I need help with this.’ When you go to a check casher or payday loan, they can’t tell you anything about your money.”
- Better access to credit. “Having a history with an institution can only help you in the future. If you want to start your own business or need a loan, it is always easier to obtain funds when you have an existing relationship with an institution. That relationship can sometimes make the difference between having the means to get started or repeatedly coming up short when you’re looking for financial assistance in your endeavor.”
As with any relationship, whether personal or business, you must work to cultivate a healthy line of communication. So once you start working with a banking institution, get to know your banker and loan officers there. Foster a productive, long-lasting relationship with that institution and you will immediately see the benefits. And you will never need to visit your neighborhood check casher again. –todd williams
