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Best Credit Unions and banks

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Best Credit Unions and banks

We have compiled a list of the best banks and credit unions to help you manage and grow your funds more efficiently.

Written by Ruth Sarreal Content Management Specialist bank accounts, bank account bonuses Ruth Sarreal is a content management specialist covering subjects related to banking for consumers on NerdWallet. She has over 10 years of experience writing and editing for consumer websites. She has previously edited content on personal finance topics for GOBankingRates. Her work has been featured by Nasdaq, MSN, TheStreet and Yahoo Finance.

Updated 17 March 2023

Edited by Yuliya Goldshteyn, Assistant Assigning Banking Yuliya Goldshteyn is a banking editor with NerdWallet. She has previously worked as an editor, writer and a research analyst in industries ranging from healthcare as well as market research. She earned a bachelor's degree in the field of history at the University of California, Berkeley and a master's degree of social science from the University of Chicago, with a focus on Soviet culture and history. She is located in Portland, Oregon.

Many or all of the products featured here are from our partners who compensate us. This affects the products we review and the location and manner in which the product is displayed on the page. But, it doesn't affect our assessments. Our opinions are entirely our own. Here's a list and .

The ideal bank or credit union is based on what you're in looking for whether it's a savings or an account for checking or both. Whatever you're searching for, NerdWallet has it covered.

Here is an overview of the most reputable institutions and accounts from 2023. The APYs listed are up to date on March 17 2023. The other information is up-to-date at the time of Jan. 13, 2023.

Read the summary of NerdWallet's top-rated credit unions and banks in 2023

Best-of-2023 Bank Winners:

Alliant Credit Union: Best credit union.

Ally Bank: Best bank; best Money market accounts.

Capital One 360: Best online banking experience.

Charles Schwab Bank: Best credit union or bank for ATM access.

Chase: Great for signing-up bonus offers and Branch acces (tie).

Discover Bank: Best savings account.

SoFi: Best checking and savings combo; best checking account in general; the top checking account for high interest; best checking account with no monthly fees; the best checking account for the prevention of overdraft fees.

Synchrony Bank: Best bank or credit Union for CDs.

Wells Fargo Bank: Best bank or credit union for branch access (tie).

Other great accounts :

Axos Bank: Great for interest-checking up to $50,000.

Connexus Credit Union: Great for checking interest on as much as $25,000.

LendingClub Bank: Best for cash back.

Marcus by Goldman Sachs: Best for same-day, high-limit transfers.

Quontic Bank: Most domestic ATMs.

Best credit unions and banks

NerdWallet has spent more than 200 hours comparing and rating over 80 financial institutions including banks, neobanks , and credit unions, to pick winners across more than ten categories. Find out more about the institutions and accounts that were awarded the top spot this year.

Alliant Credit Union: Best credit union

More than 80,000 ATMs are free; interest checking available.

2.70% APR on savings.

Find out more about us in our .

Ally Bank: Best bank and the best money market account

There are no overdraft charges and more than 43,000 ATMs

3.75% APY on savings and 3.80% APY for all balances within the cash market accounts.

Read more in our .

Capital One 360: Best online banking experience

More than 70,000 free ATMs provide tools like virtual assistance and virtual card numbers; teen checking available.

3.40% savings APY.

Read more in our .

Charles Schwab: Best for ATM access

Unlimited all-inclusive worldwide ATM cost reimbursements.

0.45% checking APY.

Learn more about our .

Chase: Best for sign-up bonuses and for branches access (tie)

No minimum direct deposit requirement to earn cash bonuses for the opening of a new checking account.

More than 4,700 branches across 49 states.

Find out more about us in our .

Discover Bank The best savings account

There are no monthly fees and 3.60% APY.

Find out more about us in our .

SoFi: Best for savings and checking, high interest checking, Overdraft fee reduction, and much more.

up to 4.00% APY on savings balances. Up to 1.20% APY on the balances of checking accounts (APY is variable and subject to changes).

No fees for overdrafts and no fee for overdraft coverage.

Learn more in our .

Synchrony Bank: Ideal for CDs

Very competitive CD rates.

Bump-up CDs, and a no-penalty 11-month CD available.

Read more in our .

Wells Fargo Bank: Best branch access (tie)

Around 4,700 branches spread across the country.

Find out more about us in our .

Some other great stories from 2023

You may also want to consider opening a savings or checking account at one of the banks listed below. The savings accounts provide APRs that are much greater than the average national rate of 0.37 percent, and the checking accounts have benefits like interest on the balance of your checking account or ATM fee reimbursements. (Read details about every kind of account in our article on and .)

Axos Bank: Great for interest-checking up to $50,000

The rate can be as high as 3.30% APY when the checking of balances to $50,000.

Unlimited ATM fee reimbursements.

Learn more in our .

Connexus Credit Union: Great for checking the interest rate for up to $25,000

up to 1.75% APY on checking balances as high as $25,000.

More than 67,000 ATMs that are fee-free.

Read more in our .

Savings Cash Management CD Checking Money Market

Member FDIC

SoFi Checking and Savings

The APY is 4.00% SoFi members with direct deposit are eligible to receive up 4.00 per cent annual percentage yield (APY) on savings balances (including Vaults) and 1.20 percent APY on their checking balances. No minimum direct deposit amount needed to earn the 4.00 percent APY on savings. Direct deposit members will receive 1.20 percent APY on all account balances , including checking and savings (including vaults). The rates of interest are variable and can change at any time. The rates listed are current as of 03/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet

Min. balance required for APY $0

Member FDIC

Marcus from Goldman Sachs Online Savings Account

APR 3.75 percentage 3.75% Annual percentage yield (annual percent yield) with $0 minimum balance to earn the stated APY. Accounts must have an active balance in order to remain open. APY valid as of 02/14/2023.

Min. balance required for APY $0

Member FDIC

CIT Bank Platinum Savings

APY 4.75 percent

Min. balance for APY $5,000

These cash accounts combine features and services similar to checking, savings and/or investment accounts into one account. Cash management accounts are generally provided by non-bank financial institutions.

The cash accounts offer features and services that are similar to savings, checking and/or investment accounts in one product. These accounts for managing cash are usually offered by non-bank financial institutions.

on the Wealthfront website.

Wealthfront Cash Account

APY 4.30%

Min. balance required for APY $1

on Betterment's website

Betterment Cash Reserve - Paid non-client promotion

APY 4.20 Percentage of annual percent yield (variable) is at 03/27/2023.

Min. balance required for APY $0

CDs (certificates of deposit) are a kind of savings account that comes with an interest rate fixed and a term generally, they offer higher interest rates than regular savings accounts.

CDs (certificates of deposit) are a kind of savings account that has a fixed rate and term generally, they offer higher interest rates than traditional savings accounts.

Member FDIC

Marcus is a Goldman Sachs High-Yield 10-Month CD

APY 5.05 percent 5.05 5 % APY (annual percentage yield) as of 03/28/2023. Special Offer Ends 09/15/2023.

Ten months of term

The CIT Bank no-penalty CD

APY 4.80%

The term is 11 months

Checking accounts can be used for cash deposits on a regular basis as well as withdrawals.

Checking accounts are used for day-to-day cash deposits and withdrawals.

They are FDIC Insured

Current Account

APY N/A

Monthly fee $0

Chime Checking Account

APY N/A

Monthly fee: $0

Member FDIC

Axos Bank(r) Rewards Checking

APY 3.30 percent Your annual percentage yield may be as high as 3.30% depending on the following combination rate of rewards: direct deposits (not including transfers between banks from another account) with a total of $1,500 or more each month will earn 0.40%. A direct deposit that is eligible for a qualifying amount is required to fulfill to meet the other interest rate requirements to apply. Ten (10) transactions at the point of sale each month with your Rewards Checking Visa(r) Debit Card for ordinary purchases that have at least $3 for each transaction, or enrolling in Account Aggregation/Personal Finance Manager (PFM) will earn 0.30 percent; and maintaining the average of at least $2,500 per month in your Axos self-directed trading Invest account will earn 1.00%; maintaining the average balance per day of $2,500 a month on An Axos Managed Portfolio Invest account will earn 1.00 percent; and making a monthly payment to an open Axos bank consumer loan (commercial as well as business loans exempted) by transfers from the rewards checking account can earn up to 0.60 percent.

Monthly fee $0

Money market accounts pay rates that are similar to savings accounts. They also have some features for checking.

Money market accounts pay rates similar to savings accounts and have certain features for checking.

Member FDIC

The Discover Bank Money Market Account

APY 3.50 percent

Min. balance to APY $1

LendingClub Bank: Best for cash back

Unlimited cash-back of 1% for debit card transactions if you meet an annual minimum account balance, or direct deposit minimum.

Unlimited all-inclusive worldwide ATM fee reimbursements.

Find out more about us in our .

From top to bottom

Marcus from Goldman Sachs: Best for the same-day, high-limit transfer

Same-day external transfers online with a maximum of $125,000.

3.75% APR (annual percentage yield) with a minimum balance of $0 to earn stated APY. Accounts must be in a positive balance to remain open. APY valid as of 02/14/2023.

Read more in our .

Quontic Bank: Most domestic ATMs

More than 90,000 ATMs in-network.

1.10% APY on your checking when you meet the minimum debit card spending requirements.

Read more in our .

Looking for other excellent alternatives? Check out our top picks and

Do you have something more specific in mind? If so, you should check out these articles:

Compare the best cash-back and savings accounts

From top to bottom

Compare the top CD accounts

From top to bottom

Check out the top checking accounts

From top to bottom

Find the top banks, credit unions and cash management accounts

Return to the top

Find the top accounts for bank accounts for kids and students.

A summary of the top banks and credit unions in 2023

Financial institution

Ideal for ...

The ratings of NerdWallet are formulated by our editorial team. The scoring formulas consider multiple data points for each financial product and service.

Best credit union overall.

The NerdWallet ratings are made by the editorial staff. The scoring formulas take into account several data points associated with each financial product and service.

Best bank overall.

The best money market account.

The NerdWallet ratings are made by the editorial staff. The scoring formulas are based on multiple data points for each financial service and product.

The best online banking experience.

The NerdWallet ratings are made by our editorial team. The scoring formulas are based on multiple data points for every financial product or service.

The best credit union or bank with ATM access.

The ratings of NerdWallet are formulated through our team of editors. The scoring formulas consider several data points associated with every financial product or service.

The best credit union or bank for signing-up bonus.

The best credit union or bank for branch access (tie).

The ratings of NerdWallet are formulated by the editorial staff. The scoring formulas are based on many data points for every financial product or service.

The best savings account.

NerdWallet's ratings are determined through our team of editors. The scoring formulas take into account several data points associated with every financial product or service.

The most efficient savings and checking account combo.

Best checking account overall.

The best checking account to earn high interest.

Best checking account for checking with no monthly cost.

The best checking account for overdraft fee avoidance.

The ratings of NerdWallet are formulated by the editorial staff. The scoring formulas take into account multiple data points for every financial product or service.

Best bank or credit union for CDs.

The ratings of NerdWallet are formulated through our team of editors. The scoring formulas are based on many data points for each financial product and service.

Best bank or credit union to access branch locations (tie).

Some other great stories from 2023

The NerdWallet ratings are made through our team of editors. The scoring formulas are based on many data points for each financial service and product.

Excellent for interest-checking for up to $50,000.

NerdWallet's ratings are determined through our team of editors. The scoring formulas are based on several data points associated with each financial product and service.

Excellent for interest-checking for the amount of $25,000 or more.

The ratings of NerdWallet are formulated through the editorial staff. The scoring formulas are based on several data points associated with each financial product and service.

Best option for cash back.

NerdWallet's ratings are determined by the editorial staff. The scoring formulas take into account multiple data points for every financial product or service.

Best for same-day, high-limit transfers that are available on the same day.

NerdWallet's ratings are made by our editorial team. The scoring formulas take into account several data points associated with each financial product and service.

The majority of ATMs in the United States.

>> Looking for the biggest banks in the country?

We looked closely at over 80 financial institutions as well as financial service providers, including the biggest U.S. banks based on the amount of assets, web search traffic, and more as well as the country's top credit unions in terms of the number of members and assets; as well as other notable and/or emerging players in the field. We assessed them based on a variety of the basis of annual percentage yields as well as minimum balances, fees, digital experience and more.

The survey of providers and financial institutions are: ( ) , the the (, ) , and (, ) , , , , Liberty Bank, , , (by Axos), , , , , (by Axos) Scarlet , , , , , , , as well as , and .

About the author: Ruth Sarreal is a content management specialist at NerdWallet. She has been writing and editing articles on personal financial topics for over five years.

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Should you pay off your car prior to selling it? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by providing you with interactive financial calculators and tools as well as publishing high-quality and impartial content. We also allow users to conduct studies and compare data for free - so that you can make financial decisions with confidence. Bankrate has agreements with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site come from companies that compensate us. This compensation can affect the way and where products appear on this site, including such things as the order in which they may be listed within the categories of listing and other categories, unless prohibited by law. This applies to our loans, mortgages,, and other home loan products. But this compensation does not influence the content we publish or the reviews that you see on this site. We do not include the entire universe of businesses or financial deals that may be available to you.

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3 minutes read. Published April 18 2022.

Written by Kellye Guinan. Written by Personal and business finance contributor

Kellye Guinan is a freelance editor and writer with more than five years ' experience within personal finance. She also works full-time as a librarian at the local library where she assists the community gain access to information on financial literacy, among other topics.

The edit was done by Rhys Subitch Edited by Auto loans editor

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If you are still owing money on your car there are some steps you should take before selling it. But be cautious because negative equity can affect your financial situation. It's a workable situation however it could result in paying a lot more money than you need to. When should you pay off your car prior to trading it in In nearly every case, it's best to make a payment or pay off your before selling it or trading it in. The main concern is whether you have positive or negative equity in your loan. If you have negative equity you'll need to pay off your auto loan before trading into your vehicle. Possible equity A positive equity in an auto loan means that you are owed less on the car than it is worth. If, for instance, you've got $10,000 remaining on your loan, but your vehicle has a value of $15,000 you're left with $5,000 of positive equity. If you decide to sell your car your equity could go toward your next vehicle for an down payment, which will reduce the amount you'll need to borrow. Negative equity Negative equity can be described as the opposite. If you still owe $10,000 on your loan but your car is worth only $8,000, you'll have $2,000 in negative equity. This is what lenders and columnists from financial advice refer to as " ." This is something you do not want to find yourself in. If you trade in your car, you will be required to pay for the remaining out of pocket. It is crucial to break even as it stops the possibility of rolling negative equity into the new loan and the cost of the vehicle you're not driving. How do you trade or sell an automobile that you owe money on People trade in and sell vehicles that are backed by liens often. In fact, dealerships may claim to pay off your car for you after upgrading to brand new model. It's not as simple as just switching one vehicle for another. Find out the value of your car on websites such as Edmunds and Kelley Blue Book. Take a look at cars with the same trim and look at average selling prices in nearby areas. Determine your budget for your new car and the amount you are owed on the current one. If you owe more than you're likely to receive through trading it in, consider other options. Gather maintenance records and other paperwork. This may help increase your car's value as a trade-in since it can prove that it's been properly taken care of. Check out trade-in deals from dealerships and don't need to go to one place. Everyone may use the term "trade-in," but really, you're selling your car. You are able to shop for different quotes to get the most competitive price. Be sure to get everything written particularly if the dealership says it will repay the loan. Be sure you have a copy of the offer. You're still accountable for paying off your loan, so follow up and ensure you're lender is paid when you have traded in your car. Alternatives to trade in a car If you're upside down on your loan, trading it in is not the best option. Instead, consider selling your car to private buyers and paying down the loan up front or refinancing the loan at a lower interest rate. Utilizing a private buyer, rather than an auto dealer, could help you for more. But, you'll need to handle paying the lender and then transfer the title on your own. This is something the dealership usually handles on your behalf, so it could be a inconvenience. Paying down the loan isn't an option for most. If your monthly payments aren't breaking the bank, set aside some money to break even. So, trading your car in won't involve taking any of the remaining loan balance into your new car loan. Try to do this . Do not extend the loan term in an attempt to lower your payment -- this increases the chance that you'll be upside-down. Instead, reduce the amount you'll need to pay. The next step is if you're not upside down on your loan, trading in your car to get cheaper alternatives could be the right solution. If you have negative equity, try refinancing it instead. It might help you lower your interest rate so you pay less in total. But, most importantly, don't transfer your current loan into a new loan. Talk to your lender to sell your car or find an alternative option to avoid taking on additional debt if you can ease to pay it. Learn more

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Written by Personal and business finance contributor

Kellye Guinan is a freelance editor and writer with more than five years ' experience within personal finance. She's also a full-time worker at her local library, where she assists her community access information about financial literacy, in addition to other topics.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping readers gain confidence to manage their finances with concise, well-studied and well-documented facts that break down otherwise complicated subjects into digestible pieces.

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5 Tactics to Pay Off the Debt Buy Today, Pay Later

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5 Tactics to Pay Off the Debt Buy Today, Pay Later

When your buy now, pay later bills come due, consider these tactics when you are figuring out how to get to debt free.

By Melissa Lambarena Lead Writer | Credit cards and credit cards, Melissa Lambarena is a lead writer for the credit card team of NerdWallet. She has been a passionate writer covering the subject of credit cards for over six years. Her prior experiences include nine years as an author for various websites and publications. In her writing, she aims to assist readers in extracting the value of credit cards to meet financial goals like expanding their budgets, building credit and traveling to dream destinations and paying off debt. She focuses on these subjects as well as others in her Millennial Money column featured in The Associated Press. Her work has also been published in The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa has a bachelor's degree in sociology at The University of California, Los Angeles.

Updated on Jan 13, 2023 7:46AM PST

Edited by Kenley Young Credit cards, credit scores Kenley Young directs daily coverage of credit cards for NerdWallet. Before that, he was a homepage editor and digital content producer for Fox Sports, and before being a front-page editor at Yahoo. He has a wealth of experience in both digital and print media, including times as the chief of the copy desk, a wire editor and an editor of the metro at McClatchy. McClatchy Newspaper chain.

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It is likely the " " bill from the Christmas season is coming shortly or may have already made its debut.

If you're unable financially to cover the bill charges for late fees, or other costs can put your deeper in debt. Circumstances can change over the course of a few weeks because of financial setbacks like unemployment, an unexpected bill or family emergency, among other events.

When you're feeling the financial squeeze of those pay-in-four buy now, pay later plans -or perhaps other debts, it's important to create plans to pay down the balance.

Here are some ideas to consider when you are attempting to plan the best way to get out of debt.

1. Update your budget

Review your and trim unnecessary costs, or swap services with less expensive alternatives. For instance, you can end subscriptions you don't use such as, for instance switching to a streaming service that is less expensive.

If you're struggling with debt from credit cards that could take anywhere from three to five years of repayment to clear, think about talking to an accredited non-profit credit counseling agency to consolidate some balances into one low-interest installment. Be aware that accounts in the plan are typically required to be shut down, which could impact your financial situation in the short term.

2. Change your payment due date

Certain lenders, such as Klarna and Afterpay permit you to alter the payment due date or request an extension.

Klarna customers who use a pay-in-4 loan may extend due dates for the payment for each purchase one time for 14 days, per the company's website. Afterpay could offer more flexibility, allowing changes to the payment due date up to six times a year through the app, as per Amanda Pires, a company spokesperson.

Lender policies may differ according to the plan's terms or ask the lender about the options available to you.

3. Talk to lenders about the need for assistance

If a financial setback or situation prevents you from paying your bills or payments, the buy now pay later lender might be able to provide some relief.

Major buy today, pay later businesses that have hardship policies generally encourage you to contact customer service as quickly as possible regarding the hardships.

"Affirm customers who are experiencing financial difficulties can reach us via our help desk so that we can work with them to determine a repayment plan that best meets their personal needs," Casey Becker, an official spokesperson for the company, said via email.

Terms differ by lender.

4. Think about a balance transfer credit card

If you have good credit (a FICO score of 690 or more) some issuers might offer to be used to pay buy now, and pay it off later. That might buy you some time should you be trying to meet the time-bound payment, but there are some points to be aware of.

Balance credit cards for transfer are designed to assist you to reduce interest costs for an agreed-upon time period, so they might not be suitable for certain buy today, pay later plans that don't charge interest at all. You can also transfer the balance as much as the card's credit limit will allow and typically there's an additional fee based on the amount you transfer, usually between three and five percent. Compare potential buy now, pay later costs against these variables.

The procedure and the terms differ between the credit card companies that allow this, so be sure to ask what you can anticipate. Wells Fargo, for instance might permit a balance transfer to pay buy now, pay later debt.

"The most common practice would be to move balances from a different credit card issuer into the Wells Fargo account to save on interest charges," Sarah DuBois, a Wells Fargo spokesperson, said via email. "If there's an issuer that isn't technically a retailer or bank credit card issuer customers have other options for how to avail their balance transfer offer (i.e. by using a balance transfer credit that is generally issued with this offer)."

In the event that a card company offers a balance transfer option that is in the form of the form of a check, your capability to utilize it will be contingent on your lender's ability to accept the payment method.

5. Be sure to weigh the pros and cons of the personal loan

A personal loan can consolidate multiple debts into a monthly fixed payment at a lower interest rate for a specified time. If the funds are sent into your bank account, it's generally possible to utilize them to pay all creditors, including buy now, payday lenders. A good credit score may be able to qualify you for an interest rate that is lower.

However, it's not a good idea to pay off debt with credit, therefore it's essential to consider whether the interest rate will save you money compared with the possible charges for buy now or pay later plans. If the buy now, pay later plans don't cost interest or fees, making it possible to pay it off with a personal loan might not be the best option. It could be worth taking the loan to consolidate loans if it will free up funds to pay off buy now and pay later plans.

This post was written by NerdWallet and first published by The Associated Press.

The author's bio: Melissa Lambarena is a credit card writer at NerdWallet. Her work has been featured by The Associated Press, New York Times, Washington Post and USA Today.

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What to Know About Chase's New Policy on 'Cash-Like Transactions'

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What you need to know about Chase's New Policy on "Cash-Like Transactions"

Such transactions can trigger fees and block the purchase from receiving rewards.

The article was written by Gregory Karp Senior Writer | Personal finance, credit cards and score on credit Gregory Karp is a former NerdWallet writer , and an expert on credit cards and personal finance. Journalist for more than 30 years, he has been a newspaper reporter as well as an editor. He has written two books on personal finance, and developed his own "Spending Smart" syndicated newspaper column. His honors include national recognition many times from The Society for Advancing Business Editing and Writing.

Updated April 15, 2022 at 10:17AM PDT.

Edited by Kenley Young, Assigning Editor Credit cards, credit scores Kenley Young is the director of daily credit cards coverage for NerdWallet. Before that, he was a homepage editor and digital content producer for Fox Sports, and before that , a front page editor at Yahoo. He has decades of experience in digital and print media. This includes times as a copy desk chief, a wire editor and an editor of the metro of the McClatchy newspapers chain.

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A LOT LIKE THIS

Chase is using a new and more expansive description of "cash-like transaction," which for Chase credit card users refers to purchases that are subject to the penalties of taking an . Cash advance rules can vary by card however, they usually contain high-cost fees and higher interest while also disqualifying purchases from earning reward points, such as cash back, mile points, or.

An example of transactions that are similar to cash, also called "cash equivalents," could be to use credit cards to cash out cash from an ATM.

To a certain extent, Chase is just making clear its current definition. The changes will be effective at various times, but typically from mid-April to early April 2021.

>> MORE:

What's happening?

Chase in recent times has ruled out certain kinds of transactions, such as opening an account for or from an exchange. The same was true when Chase implemented its new definition of transactions that resemble cash.

If Chase eventually allowed those transactions, they are clearly marked as cash-like transactions and would be considered cash advances.

In its letter for card holders, Chase said cash-like transactions can be classified, but not limited to, four categories:

Currency exchange and other forms of payment: Travelers' checks money orders, foreign currency, wire transfers, cryptocurrency, other similar digital or virtual currency and similar transactions.

gambling: Lottery tickets, casino gambling chips, racetrack bets and similar online and offline gambling transactions.

P2P transactions: person-to-person money transfers and account-funding transactions which transfer money.

Third-party bill-pay services: This includes bill-payment transactions not made directly with the merchant or their service provider.

Certain of these items, such as lotto tickets were already considered cash-like transactions in Chase's previous cardholder agreements. The new definition is more expansive as well as clarifies the meaning of what Chase means by cash-like transactions, it said.

Missing from the list is explicit mention of certain popular payment systems like , Google Pay, Venmo, PayPal Key and . A Chase spokeswoman said each of them "could" be considered a cash-like transaction. However purchasing goods or services from a business using an external payment provider are not cash-like transactions , and would not have the associated fees, she said.

Thus, for instance, using a Chase card to pay for the purchase in person through Apple Pay or an online purchase made through PayPal at checkout wouldn't be considered a cash-like transaction.

transactions made using the use of a Chase credit card are treated as transactions and cannot be cash-like transactions, she said.

And Plastiq states that it will automatically reject transactions if the issuer treats them as cash advances.

The definition of the word is important.

In general, transactions that resemble cash could have these downsides:

The fee for cash advances . This is a once-off fee that is charged at the time you take your advance, usually 3% to 5percent of the total amount.

Higher interest rate. Some cards have an additional annual percentage rate on cash advances than regular purchases.

No grace period. If you pay your total balance monthly generally, you'll have a time frame of at least 21 days to pay for purchases before you're charged interest. Cash advances however begin to earn interest on Day One.

A lower credit limit. Some credit cards have a separate cash advance credit limit that is less than the total credit limit.

There are no rewards on credit cards. Spending money on a cash equivalent is probably not eligible for rewards, such as cash back and travel points or miles. Similarly, it won't count toward your required spending to earn a sign-up bonus.

>> MORE:

What to do if you're anxious

If you're concerned about being socked with cash advance fees or other charges, call the number located on the bottom of the card and request that Chase . This way, if a purchase is found to be a cash-like purchase and is rejected if it's over that limit instead of being charged charges.

If you don't agree with Chase's changes to the concept of transactions that are similar to cash you can reject them up until the day before they go into effect. But then Chase will cancel your account.

What Chase provides as alternatives

Cash advances are an expensive option to earn cash. However, Chase provides another method to get access to the credit line on your card credit, aside from making purchases if that's your goal.

My Chase Loan

It is similar to a is similar to a loan. After approval, you will receive a deposit directly to the account of your bank account. There is a predetermined amount of time to repay the loan and are paying a variable interest rate that is based of the Chase card you are applying for the loan.

>> MORE:

About the author: Greg Karp is a former NerdWallet writer and an expert on personal finance and credit cards. He previously worked at the Chicago Tribune and wrote two money books.

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Car loan documentation checklist Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators as well as publishing relevant and impartial content. We also allow you to conduct your own research and compare information at no cost and help you make sound financial decisions. Bankrate has agreements with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies who pay us. This compensation could affect how and when products are featured on this site, including the sequence in which they appear in the listing categories, except where prohibited by law. This applies to our mortgage, home equity and other home lending products. However, this compensation will affect the information we publish, or the reviews that appear on this website. We do not cover the vast array of companies or financial offers that may be available to you. SHARE: g-stockstudio/Getty Images

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The most commonly utilized auto loan documents If the time comes to apply for an auto loan The lender may ask you to provide proof of the information you provide. Here's a brief breakdown of the key documents you'll require and what they represent. Employment and income proof If you're trying to get an auto loan You will have to prove your earnings. The lender requires proof, such as an W-2, tax return or pay stub that shows your earnings as well as your employer's contact details. You will still need to provide proof of employment if you're self-employed, typically in the form of the tax return. If you are not employed, then you may still be able show evidence of income to qualify to get auto financing. It is possible that you have an association that earns money, for example, rental property or investment earnings. Your lender will look at your total documented earnings, cash reserves and credit history to determine your loan amount and rates. Personal details to pull credit histories Each time you apply for an loan, you will have provide specific information regarding you. The information you provide will be used to obtain credit reports that are then examined to determine if you are a good applicant for the loan and also to calculate loan rates. The information you provide includes: Name and the names of your previous spouse as well as any relevant information. Birth date. Social Security number. Address. Telephone number. Address proof when you are applying for the car loan the lender will ask for evidence of your address. This can be done with official documents that include your address and name. In most cases, you will need to present two documents that provide the lender the same details. One is typically an utility bill, while the other could be the bank statement or a piece of mail that has been recently postmarked of mail. Other forms of documentation you can submit include a pay stub , or the copy of your rental or lease agreement, if you have one. Evidence of insurance lender wants proof that you are insured and may also require it when you purchase the car through a loan. This will ensure that you'll be able to repair or replace your car in the case in the event of an accident. You should contain your full name as well as your insurance company address, NAIC number and your policy number. Information about your vehicle Alongside all of your personal information, you will want to gather the following vehicle-specific information in case you own it. Identification number of your vehicle (VIN). The make, model, year and trim. Additional features, like premium audio. Current mileage. Tips to fill out the automobile loan application The amount of time you devote to filling out the application can have an enormous influence on the loan procedure and the amount you will receive. Follow these steps when filling in your application. Complete the application fully and accurately. When you fill out your application, be sure to fill in all the requested information, even if it doesn't initially appear to be essential. Include all income sources that you could rely on. Income verification is a common element in the car loan application process and, as previously mentioned, includes bank statements, 1099 statements, W-2 forms as well as pay slips. Avoid outside funding for your down payment. It is advised not to use your home equity or other loans to fund your . The lender is likely to know that you have enough cash required to buy the car. Consider add-ons. Select the one you like and then decide if you'd like to roll them into your loan. Along with your down payment as well as the sale price, there are a number of additional charges that you'll need to factor in if you choose an add-on and do not pay for them outright. Take your time reading. It is important to read the auto loan arrangement is legally binding document, and you need to be sure to read it in its entirety prior to signing it. Create copies. It is always recommended keeping copies of your loan documentation in a safe spot. Next steps getting an auto loan is a process that takes time but being thorough means that you won't be rejected because of an error. Having all of your information together and financing lined up prior to purchasing a car assists in making the loan process simpler. Learn more

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States in the United States and Metro Areas With the Most Unbanked Households

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(image: https://farm0.static.flickr.com/0/50934055278_82c3903d0d.jpg)States and Metro Areas With the Most Unbanked Households

by Laura McMullen Assistant Assigning Editor Financial, personal finance information Laura McMullen assigns and edits the financial news content. She was previously a senior writer for NerdWallet and covered budgeting, saving and making money. She has also written for the "Millennial money" column in The Associated Press. Prior to joining NerdWallet as of the year 2015 Laura worked for U.S. News & World Report which is where she edited and wrote articles on health, careers and education as well as contributed to the rankings initiatives of the company. Before working at U.S. News & World Report, Laura interned at Vice Media and studied journalism as well as the history of Arabic in the Ohio University. Ohio University. Laura lives in Washington, D.C.

Updated September 28, 2016

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The perks at the local bank extend beyond the free coffee and sweets -They offer things that you may take for granted like free cashing checks and loans with decent interest rates. But for the over 9.5 million people who aren't banked across the U.S., these services are expensive which NerdWallet discovered can add several hundred dollars a year.

Within the U.S., 7.7% of households did not have a member who had the benefit of a bank account, according to the 2013 FDIC National Survey of Unbanked and Underbanked households, the most current set of data available. That was down from the 2011 edition of the FDIC's Federal Deposit Insurance Corp.'s biannual survey, and the number dropped to 7% in 2015, as per an overview of the most recent edition, which will be released in October.

Additional fees, missed benefits

Although fewer families are forgoing financial institutions, those who are not taking advantage of , in which they can build emergency funds, and secured credit cards that help build credit. They don't benefit from the full array of protections against fraud offered by federally insured banks and credit unions offer, and they can't access online and mobile banking tools which can save the time as well as money. (Read NerdWallet's coverage of the nation on the subject to learn more about the options available to unbanked customers, such as .)

Households that don't have the luxury of a bank account also pay loads of fees to expensive alternative financial-service providers. NerdWallet calculated the cost of money checks, cashing orders and prepaid debit cards. Unbanked households that use an prepaid debit card that allows direct deposit pay an average annual amount in the amount of $196.50 in fees. On the other hand, unbanked households that utilize a prepaid debit card without direct deposit pay an average annual amount of $488.89 in charges. (See our complete methodology for more information.)

Unbanked households in the state and metro area

We looked at our $196.50 as well as the $488.89 figures as percentages of each state's 2013 average income for households that do not have an bank account, based on FDIC data. Check out this map to discover the states in which households without a bank account are most severely impacted with fees, using both the higher ($488.89) and the lower ($196.50) estimations. You can also find out where the states with the greatest percentage of households with no bank account.

The tables below illustrate the percentage of unbanked households in 22 metropolitan areas and in all states, plus Washington, D.C. We estimated that the price of not owning a bank account as a percentage of the average unbanked household income of the metro area, as determined through the FDIC. We excluded three major metro areas for which some data were unavailable: San Diego-Carlsbad-San Marcos, California; Sacramento-Arden-Arcade-Roseville, California; and San Antonio, Texas.

Unbanked households by metro area

UNBANKED HOUSEHOLDS BY state

The Rank (most to least unbanked)

State

A percentage of households aren't banked

Income of a household that is not banked

Total unbanked expenses of all household households (lower estimate)

Total unbanked cost across all households (higher estimate)

Costs unbanked average as a percent of income (using higher estimate)

1

Mississippi

14.5%

$15,394.41

$31.08 million

$79.82 million

3.18%

2

Louisiana

13.9%

$20,104.15

$47.26 million

$121.37 million

2.43%

3

Arizona

12.8%

$20,300.92

$61.95 million

$159.07 million

2.41%

4

Arkansas

12.3%

$15,653.75

$29.08 million

$74.68 million

3.12%

5

District of Columbia

11.8%

$14,588.29

$7.46 million

$19.15 million

3.35%

6

West Virginia

11.0%

$18,592.82

$16.56 million

$42.54 million

2.63%

7

New Mexico

10.9%

$18,934.67

$17.78 million

$45.67 million

2.58%

7

Georgia

10.9%

$18,957.70

$81.64 million

$209.64 million

2.58%

7

Oklahoma

10.9%

$19,373.49

$32.56 million

$83.61 million

2.52%

10

South Carolina

10.5%

$19,724.50

$38.88 million

$99.84 million

2.48%

11

Texas

10.4%

$20,621.80

$191.63 million

$492.07 million

2.37%

12

Kentucky

9.7%

$15,417.32

$34.05 million

$87.45 million

3.17%

12

Tennessee

9.7%

$17,204.81

$48.51 million

$124.58 million

2.84%

14

Alabama

9.2%

$18,787.70

$36.03 million

$92.52 million

2.60%

15

Missouri

8.9%

$20,058.95

$42.11 million

$108.12 million

2.44%

16

New York

8.5%

$16,833.40

$125.19 million

$321.47 million

2.90%

17

North Carolina

8.4%

$17,177.65

$61.46 million

$157.82 million

2.85%

18

New Jersey

8.2%

$21,298.78

$51.25 million

$131.61 million

2.30%

19

California

8.0%

$22,211.31

$206.18 million

$529.45 million

2.20%

20

Nevada

7.9%

$19,047.68

$17.06 million

$43.80 million

2.57%

21

Illinois

7.4%

$21,036.78

$71.47 million

$183.53 million

2.32%

22

Ohio

7.2%

$18,777.16

$65.61 million

$168.47 million

2.60%

22

Indiana

7.2%

$22,675.18

$36.28 million

$93.17 million

2.16%

24

Montana

6.6%

$11,963.24

$5.35 million

$13.74 million

4.09%

25

Virginia

6.5%

$19,340.75

$39.67 million

$101.88 million

2.53%

26

Colorado

6.4%

$22,159.12

$25.84 million

$66.36 million

2.21%

27

Rhode Island

6.2%

$18,543.22

$5.12 million

$13.15 million

2.64%

27

Florida

6.2%

$19,376.05

$95.70 million

$245.73 million

2.52%

29

Delaware

6.1%

$22,921.16

$4.33 million

$11.12 million

2.13%

30

Kansas

6.0%

$21,820.97

$13.49 million

$34.64 million

2.24%

31

Massachusetts

5.8%

$22,086.69

$29.38 million

$75.45 million

2.21%

32

Nebraska

5.7%

$15,622.98

$8.47 million

$21.76 million

3.13%

32

Michigan

5.7%

$19,127.41

$42.44 million

$108.99 million

2.56%

34

Connecticut

5.6%

$21,036.57

$15.37 million

$39.48 million

2.32%

34

Wyoming

5.6%

$24,067.11

$2.65 million

$6.82 million

2.03%

36

Idaho

5.4%

$17,444.44

$6.39 million

$16.42 million

2.80%

37

Pennsylvania

5.2%

$17,820.47

$52.14 million

$133.90 million

2.74%

38

Wisconsin

4.8%

$16,495.70

$21.75 million

$55.85 million

2.96%

38

Maryland

4.8%

$24,470.06

$20.81 million

$53.43 million

2.00%

40

Oregon

4.5%

$16,345.12

$13.62 million

$34.98 million

2.99%

40

Iowa

4.5%

$18,571.62

$10.83 million

$27.81 million

2.63%

42

South Dakota

4.2%

$16,040.68

$2.67 million

$6.86 million

3.05%

43

Washington

4.1%

$17,048.35

$21.07 million

$54.10 million

2.87%

44

Hawaii

3.8%

$21,096.90

$3.41 million

$8.77 million

2.32%

45

Minnesota

3.6%

$16,228.27

$14.92 million

$38.31 million

3.01%

46

Utah

3.3%

$21,617.24

$6.11 million

$15.68 million

2.26%

47

Vermont

3.1%

$22,553.77

$1.59 million

$4.08 million

2.17%

48

New Hampshire

2.9%

$26,653.71

$3.00 million

$7.71 million

1.83%

49

North Dakota

2.8%

$22,645.30

$1.58 million

$4.06 million

2.16%

50

Maine

2.4%

$14,906.68

$2.57 million

$6.59 million

3.28%

51

Alaska

1.9%

$21,299.66

$1,002,022.57

$2,573,028.07

2.30%

Key lessons to take away

1. The percentage of households without a bank account is significantly higher for low-income households. Nationally, 7.7% of households did not have an bank account in 2013, however that number was much more so for low-income households. About 20% of households with incomes of less than $30k were not banked, while 24% were not banked, meaning they had at least one savings account or but had utilized at least one other financial service in the past year. These types of services include check cashing as well as money orders and payday loans. More than three-quarters (35.6%) of the households without bank accounts surveyed for the FDIC report indicated that the main reason they didn't have an account was because they don't have enough cash to fund an account, or to maintain a minimum balance. (Note that many do not require minimum balances.) Other reasons that are common include distaste or distrust for banks, as well as high or unpredictability of charges for account accounts.

The correlation of the national population between bank-independent and low-income households is reflected at the state level. Seven of the 10 states that have the highest proportions of unbanked people are among the 10 states with the lowest median household incomes, according to the 2013 U.S. Census American Community Survey. In fact, excepting Washington, D.C., the nine states with the highest concentration of unbanked households had household incomes lower than the 2013 U.S. median of $52,250.

2. The cost of not having a bank account hit low-income households the hardest the most: The income for households that don't have an bank account is particularly low. The 2013 average post-tax income of households that were not banked in the U.S. was $17,359, and was lowest in Montana at $11,963.

Keep in mind that unbanked households who use a prepaid debit card without direct deposit are charged the equivalent of $488.89 in fees per year. In Montana the amount would be more than 4 percent of the typical household's income that is unbanked. To give you a sense of scale, the average U.S. household spent about 3.5% of its post-tax income on fuel and motor oil in 2015 in accordance with the U.S. Bureau of Labor Statistics.

In Washington, D.C., the disparity in earnings between banked and unbanked households is huge. The average 2013 income for fully banked households in D.C. was $55,032, however it was just $14,588 for households that didn't have a bank account. This figure isn't going to go far in a place where housing options for those with low incomes are decreasing. According to a D.C. Fiscal Policy report 2013 there were only half the number of Washington apartment rentals for less than $800 per month as there were in 2002. The report suggests "subsidized housing is currently the sole source of affordable housing."

3. Unbanked local demographics reflect the national trend: According to the FDIC One-fifth of black households (20.5%) across the U.S. in 2013 were unbanked, followed closely by Hispanic (17.9 percent) along with American Indian/Alaskan household (16.9%). Only 2.2 percent of Asian households had no bank accounts This was a smaller percentage than white (3.6 percent) and Pacific Islander/Hawaiian (6.1 percentage) households.

The areas that have the highest concentration of unbanked households are in line with these national demographics. In No. twelve Tennessee as well as No. 2 Louisiana the largest state city has a majority of black residents in both cities, with Memphis at 63 percent and New Orleans at 59.8%. Phoenix is the top city on our list of cities that aren't banked with a significant Hispanic population and Albuquerque the largest city within New Mexico, which tied for seventh among the states. Two states that have the highest proportions of populations that aren't banked, New Mexico and Oklahoma both have American Indian populations nearly 10 times higher than that of the U.S. as a whole.

4. Access to only in-person and online banking is a problem it's difficult to create an account bank account when there are no branches where you live. More than half the ZIP code in the middle of South are "bank deserts" which means they've got just one or zero branch banks, according to the Mississippi-based Hope Policy Institute, which analyzes financial inclusion. In the institute's analysis, the mid-South is comprised of Mississippi, Louisiana and Arkansas where there are some of the highest rates of unbanked households. The region also includes the western part of Tennessee where is the home of Memphis which is where more than one-fifth (19.5 percent) of households do not have the benefit of a bank account.

Brick-and-mortar locations are more important for consumers who can't connect to banks and financial institutions via the internet. Certain Memphis residents have difficulties with both methods. As per the U.S. Census Bureau's 2013 American Community Survey, 27.7% of Memphis households were without access to the internet, as compared with 21.4 percent across the country. Lack of internet access is high throughout New Orleans, too, at 27.4%.

Sreekar Jasthi is a data analyst at NerdWallet the personal finance site. Email: . Laura McMullen is a staff writer at NerdWallet. Email: . Twitter: .

Methodology

Concentrations of income and unbanked households

To determine the median income for households that are not banked nationwide and in each state we utilized information from the . To decide which metropolitan areas to analyze we first selected those 25 from the FDIC report with the largest number of households. We omitted San Diego-Carlsbad-San Marcos, California; Sacramento-Arden-Arcade-Roseville, California; and San Antonio, Texas, because of insufficient income data.

The percentages of unbanked households across each state or metropolitan area are also derived from FDIC's report. FDIC report.

Costs of being unbanked

We arrived at the price range from $196.50 to $488.89 in fees for an average household without a bank account by adding the fees that are associated with cash checks, money orders and debit cards that are prepaid. The cost of these fees will depend on the extent to which the households' debit cards are prepaid and permit direct deposit.

To calculate the cost of check cashing for households that are not banked and use debit cards prepaid without direct deposit or for those that only use cash We assumed two checks cashed per month and a charge that is 1% of a check's value. For those who use prepaid debit cards with direct deposit, we added no cash for checks. For both household types we took one money order sent per month, with an average cost of $1.40.

To determine the average of cashing of checks and money order fees We analyzed the FDIC's data regarding what frequency alternative financial services used by each type of household (banked or non-banked) Then we added the less frequent use among banked households to the average costs.

To determine the average annual cost of debit cards that are prepaid, we examined 69 cards, which were based on the major issuers, the highest searches as well as Pew Charitable Trust's the cards listed on the websites of's and. For cards that offer several plans We counted each plan as a separate card.

The analysis includes the annual cost of the prepaid debit card that comes with direct deposit and without direct deposit for payroll. The median monthly fee used was $4.98 The median out-of-network ATM fee was $2.50. We used the maximum fee for loading cash of $4.95.

Without direct deposit We assumed 12 monthly fees and four ATM fees per month and 2 cash load fees each month. Signature- and PIN-based transaction fees aren't usually applicable to cards that have monthly charges, so we didn't include them.

Upcoming FDIC survey

A recent preview of the survey for the year 2015 FDIC National Survey of the Unbanked as well as Underbanked Households, scheduled to be released in all its entirety on October. 20th, 2016 It revealed that the unbanked rate has fallen to 7percent, which is about 8.6 million household. The analysis of NerdWallet is based on the most up-to-date set of information available.

About the author: Laura McMullen writes about managing the money of NerdWallet. Her writing has been featured in The Associated Press, The New York Times, The Washington Post and many other publications.

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The Debt Consolidation Process Can Go Wrong

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The Debt Consolidation Process Can Go wrong

Written by Liz Weston, CFP(r) Senior Writer | Personal finance economics, credit scores, Liz Weston, CFP(r) is a personal financial columnist co-host on"Smart Money," the "Smart Money" podcast Award-winning journalist and the creator of 5 novels on financial matters, among them the bestseller "Your Credit Score." Liz has been featured on a variety of national television and radio programs such as the "Today" program "NBC nightly news,"" The "Dr. Phil" show and "All All Things Considered." Her columns are published through The Associated Press and appear in a variety of media outlets every week. Before joining NerdWallet, she wrote for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She shares a home in Los Angeles with a husband, a daughter and a golden retriever that is co-dependent.

Updated Jul 20, 2017 2:07PM PDT

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Many or all of the products featured here are provided by our partners who compensate us. This affects the products we write about and the location and manner in which the product appears on the page. However, this does not influence our evaluations. Our views are our own. Here's a list and .

Daniel Montville knew a debt consolidation loan won't be able to solve his financial woes however, the hospice worker believed it could give him some relief. He had already had a bankruptcy filing in 2005 and was determined not to repeat the mistake.

Montville was able to take out the loan in 2015, but within a year he had fallen behind in his payments as well as the payday loans he got to aid his daughter, a single mother with four children. The payday lenders have almost cleaned out his checking account every time a paycheck came in which left him with a bare minimum of funds to cover the necessities. Then , his daughter lost her job and the tax refund of $5,000 she had promised to him as repayment went instead to helping her children.

"That's the moment I woke up and realized this was a no-win situation," says Montville, 49, of Parma, Ohio. Montville is now paying his creditors under a five-year Chapter 13 bankruptcy repayment plan.

could be a response to a borrower's need however it does not always address the overspending that caused the debt in the first place. Within a short time the borrower is often buried deeper in bills.

"It's simple to fix it," says Danielle Garcia, a credit counselor with American Financial Solutions in Bremerton, Washington. "They aren't addressing the root of the problem."

From the frying pan

The five-year $17,000 loan Montville received at his credit union, for example paid off 10 high rate credit card bills, lowered the rate of interest on the loan from double digits to a mere 8%, and provided a monthly fixed installment of $375. This was lower than what he had been paying on all the credit cards.

What the loan did not do, however, was change Montville's spending habits. Paying off the credit cards only gave him room to make charges.

A portion of the debt resulted due to unexpected expenses like repairs to cars. However, Montville estimates 60% were due to "foolish spending."

"I wanted a TV. I needed clothes. I'd like to go to a movie," Montville says. When he bought a new computer, he noticed only the low monthly payment of $35, not the interest rate of 25%. rate that he was paid. When his daughter fell into financial trouble, he turned to payday loans because his cards were at their maximum.

Now that he is unable to longer borrow -the credit card accounts are shut, and he would need the permission of the bankruptcy court in order to purchase a new carand Montville is now thinking about what he actually wants to purchase versus what he wants to buy. He contemplates whether he could go without a purchase, or postpone it. If he really desires something, he will save for it.

"My current feeling is cash only," Montville says. "Once I have paid cash, nobody can take it from me."

Consolidation is a method is not an answer

Montville's lawyer, Blake Brewer, says many of his clients don't have any idea what their spending amounts are against their income. They assume that their next tax refund or a stretch of overtime will help them catch up, not realizing that they are spending more than they make.

"These people are simply amazed when I sit with them and take out the calculator," Brewer says.

Some of his clients consolidated their debt using a 401(k) loan or a home equity line of credit. They boast of saving money by lowering their interest rates, but they don't realize they're spending assets -- retirement accounts and homes equity which would normally be protected against creditors when they file bankruptcy court.

People seeking debt consolidation also can wind up with , which promise to persuade creditors to settle for less than they're owed. The process of settling debts typically results in an enormous hit on credit scores, but success isn't guaranteed and some companies simply disappear with the thousands of dollars they demand.

Through a credit union or a reliable online lender -- don't have to be a disaster if the borrowers:

Stop using credit cards

Make a commitment to an annual budget

Save for emergencies so they don't need to borrow to pay for the unexpected expenses

Most importantly, their debt must remain manageable, and payable in the threeto five year period of the typical debt consolidation loan. If it would take longer than five years before they can pay the balance by themselves, the borrower must consult with a .

"By the time the majority of people seek help, they're already in too in the hole," says Garcia, the credit counselor.

Liz Weston is a certified financial planner and columnist at NerdWallet the personal finance site, and creator of "Your Credit Score." Contact: Twitter @lizweston.

The post is written by NerdWallet and was originally released by The Associated Press.

Author bio Liz Weston is a columnist at NerdWallet. She is a certified financial planner as well as the author of five books on money, including "Your credit score."

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If it is time to buy your next car it is important to determine if you'll choose to go through your bank or the itself to obtain vehicle financing. Both provide you with the chance to drive away with a brand new vehicle, they differ in experience, available rates as well as loan lengths. Which is better? Bank or dealer auto loans Consider the potential benefits and disadvantages of both before you apply for financing. Bank financing The major benefit of going direct to your banks or is that you'll have lower interest rates. Dealers usually have higher interest rates due to the fact that dealers apply a markup on the interest rate each time they connect you with the lender. In addition, the credit unions and banks have many different products, which means that they are more likely to provide the right financing solution for you. Dealer financing Once you've gone through the process, you will be able to avail a number of advantages that make the financing process more simple. You will be able to make use of the financing office at the dealership which reduces the amount of time you have to spend looking around for other lenders. Dealerships often also offer manufacturer deals, including rebates as well as other . A bank can finance your auto The bank you finance your car through can be a great option if you are looking to steer clear of shopping around and comparing rates. Benefits of auto financing from a bank When done correctly the process of financing a car with the bank is a great idea. Banks tend to provide lower interest rates for an and could be a suitable alternative for those who require an additional loan. Drawbacks of bank auto financing However, non-bank loans may take longer to process, and you may have to submit your application in person. Also, you may not be eligible for a loan when you have an unsatisfactory credit score. Be aware of the urgency of your car loan as well as the condition of your credit before deciding to finance it through the credit union or a bank. How do you finance with the bank If borrowing from a bank is the right choice for you, you first will need to meet the eligibility requirements set by your bank in order to be eligible for a loan. Most banks offer the auto loan minimum and maximum, so make sure to check if your bank offers an auto loan that is suitable for your needs. It is crucial that you are aware of the car you want to finance. Certain banks will only finance cars bought through dealership partners and be able to impose mileage and age limitations. Try to find an lender who offers no-cost refinancing. That way, if your financial situation improves or declines in the course of time, you can alter your loan without incurring any additional fees. You will also need to get a from the bank. When you get a quote, you can decide on what term best fits your budget each month and also gain an understanding of the overall cost with interest. Should you choose to go through with the application, the lender will likely require documentation, such as W2s, pay stubs from the last few months as well as proof of address and an official ID. Are bank auto loans the right choice for you? The option of borrowing money from a bank might be a good option for those who require a larger loan amount, a low interest rate or a repayment term that lasts five years or less. Consider the drawbacks and advantages of bank financing prior to making a decision and make sure to evaluate your the options. The dealership financing option is a good alternative. is an option for you if your credit isn't in great shape as well as if you're not in a connection with any banks and credit unions. Benefits of financing through a dealership The major advantage of using a dealer to finance your vehicle is convenience. There is no need to apply for financing through a bank and potentially have to wait days, or weeks, to get approval. Instead, you'll just visit the dealer and drive home behind the wheel of your . Additionally, if you own a , you can have them accompany you and make the buying experience a bit less stressful. Drawbacks of financing through dealerships The first disadvantage may appear to be a good thing. Dealerships usually offer financing terms that include a minimum of $0 option for down payments. Although these may result in an attractive monthly payment as well as beginning costs, you'll be paying more for interest overall. It is also possible to receive a greater interest rate. Dealership financing is more expensive than regular bank auto loans even with the same credit score. Dealers both add a markup to the interest rate they offer and are also enticed to direct you to certain lenders, even if you can find an APR that is lower elsewhere. What is the best way to finance dealers Dealerships collaborate with big banks as well as online lenders as well as credit unions to provide auto loans by way of their finance division. This means you will be able to finance your vehicle through a plan that the dealership has with a lender and the dealer will take care of much of the heavy lifting. If you're granted financing through your dealership, you will be taken to the dealership's financing department to finalize the transaction. This process will differ depending on the dealer, however it is likely that you need to fill out several forms and then submit documents of income and assets. After you have been approved, the dealership's finance manager or a representative who is the dealer's automobile lender can assist you in reviewing the loan specifics and approve the loan. Is dealership financing right for you? A direct loan to your vehicle through the dealership is the ideal choice if you want to stay clear of the heavy lifting involved in shopping for vehicle financing. It's also simpler to get approved for, so if you have poor credit, financing through the dealership may be more accessible. Guidelines for obtaining an auto loan If you're applying for your car loan directly from the dealership or through a bank or credit union it is essential to make an application for prequalification, and then shop around. Prequalify yourself If you're seeking financing through a bank or credit union make use of the process. This process is typically offered on the internet and is a fantastic method to gain an understanding of the amount you'll be able to take out. You'll need your earnings, savings and other personal information to be able to complete the process. Shop around Once you prequalify look for an loan with the rate you were offered. Many auto loan rates are negotiated, as can be said of fees and length of loan. Numerous lenders compete to get your business and you can use this advantage to your advantage. Don't settle for an lender that doesn't provide favorable conditions. The next steps are to look at both dealerships and banks could be options when it comes to financing your new car. However, each has its pros and cons Be sure to shop around for the best interest rate and repayment terms. Learn more

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Debt Management Strategies: Select the One that is Right for You

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Debt Management Plans: Choose the One that is Right for You

Compare various debt management plans' features and prices to determine the best fit.

By Sean Pyles Senior Writer | Personal finances, debt Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet's "Smart Money" podcast. On "Smart Money" Sean talks with Nerds across NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and practical advice on money, Sean provides real-world guidance to help people improve their financial lives. In addition to answering listeners' financial questions on "Smart Money," Sean also interviews guests who are not part of NerdWallet and creates special segments to explore topics such as the racial gap in wealth, how to start investing, and the history of student loans.

Before Sean was the host of podcasting for NerdWallet, he covered topics that dealt with consumer debt. His work has appeared throughout the media including USA Today, The New York Times and other publications. When Sean isn't writing about personal finances, Sean can be found digging around his garden, taking walks, or walking his dog for long walks. Sean is located at Ocean Shores, Washington.

Updated on Aug 17, 2021 9:47PM PDT

Edited by Kathy Hinson Lead Assigning Editor Personal finances, credit scoring financial management and debt Kathy Hinson leads the Core Personal Finance team at NerdWallet. In the past, she worked for 18 years with The Oregonian in Portland in capacities such as chief of the copy desk and team director of design and editing. Prior experience includes news and copy editing for various Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in mass communications and journalism in the University of Iowa.

A majority of the items featured on this page are provided by our partners who compensate us. This influences which products we write about and the location and manner in which the product is featured on the page. But, it doesn't influence our evaluations. Our opinions are our own. Here's a list and .

Are you feeling overwhelmed by burden of debt? A debt management strategy could be the answer.

This debt payoff tool puts you on a path to pay off credit card debts, typically credit cards in the course of three or five years. With the help of a DMP, several debts are put into one payment and creditors reduce your interest rate. In exchange, you sign the payment plan which typically lasts between three and five years. Keep in mind that interest rate reductions are uniform across credit counseling agencies, based on your creditors' guidelines and your budget.

Here's a comparison of the debt management plans at some important nonprofit .

Agency / availability

Average fees

Available in 50 states

The cost of the initial fee is $31.

20 monthly fees

All states are covered, with the exception of Minnesota

$42 startup fee

A monthly payment of $30

Available in 50 states and Puerto Rico

A startup charge of $24 is included.

$28 monthly fee

In 50 States

$35 startup fee

A monthly payment of $29 is available.

It is available in all 50 US states.

$35 for the initial fee

$ 24 per month for a monthly fee

Debt management strategies: pros and pros and

Pros:

Can cut your interest rate by more than half.

Helps pay off debt faster instead of doing it yourself.

Consolidates debts from several creditors into one installment.

Cons:

This is typically used to pay to pay off credit card debt. It can't be used to pay for student loans, medical debt or tax obligations.

It can take anywhere from three to five years, and you're generally unable to use credit cards or get new credit lines while in the plan.

Missing a payment can derail the plan and end your interest rate cuts.

It's time to cut your debt

Register to join the link and track everything from mortgages to cards all all in one location.

Do you think a debt management program is right for you?

DMPs may not be suitable for all. Depending on the agency, about 10% to 20% of clients are able to avail this option for debt relief. Of those who do, about 50% - 70% have completed the program, based on the time of year and the method by which the agency records accomplishments.

You may want to consider the possibility of a DMP If:

Unsecured debt, such as from credit cards, is between 15% and 39% of your annual income.

You have a steady income and believe you can pay off your debt in five years if you had an interest rate lower.

You can get by without opening up new lines of credit while in the plan.

Alternatives to a debt-management strategy

DMPs do not always cover all expenses . The problem debt due to student loans and medical expenses are not covered by such plans. Other options:

If the amount of debt you are struggling with is less than 15% of your annual income, you could take a DIY approach by using the method.

A , if you have good enough credit to qualify you can also combine the debts of several creditors into one with an interest rate that is lower. You can control how long the loan is and retain your ability to open new credit lines.

You may want to consider this option if your debt is greater than 40 percent of your income, and you have no means of paying the debt off in five years. A debt reduction tool will rapidly give you a new start. Consumers have credit scores that begin to rise in as short as six months.

What are the things you'll need to do to get started

If you believe a DMP might be your best choice for debt relief, start by . Consider:

Certification and accreditation : Look for an agency that's part of the . They require agencies to be recognized by an independent body as well as both require certification as well as a standard level of quality for counselors.

Access: Ask yourself which method you'd prefer to use to get services: via phone, in person or online.

Cost: Fees differ based on agency, the state you live in and your financial need. Before signing up, verify how much you'll pay each month toward your debt as well as fees.

Author bios: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has been featured in The New York Times, USA Today and elsewhere.

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