Exposed: Famous Banks With The Worst Fees & How to Bank Fee-Free

Take a step into your metropolitan “downtown” district. Take notice of the largest buildings in that district. Whose names are on those buildings? Shocking that they usually are names of very large banking institutions! Interesting how banks who seem to have very large physical presences, have some of the highest fees for banking.

Below is a chart of the 16 banks with the most U.S. deposits, and how much they made in fees on these deposit accounts during 2008. The right-most column is a calculation of fees per $100 in deposits, and the list is sorted by this metric.

(Deposits and fees are in thousands of dollars.)
Bank Name U.S. Deposits Account Fees Fees Per $100

Bank of America $754,919,971 $10,857,344 $1.44
US Bank $145,018,465 $1,597,263 $1.10
Wells Fargo Bank $308,404,000 $3,178,000 $1.03
Regions Bank $89,223,072 $862,701 $0.97
Fifth Third Bank $72,135,041 $595,034 $0.82
SunTrust Bank $113,436,778 $904,842 $0.80
RBS Citizens Bank $94,364,954 $716,435 $0.76
BB&T Bank $89,122,999 $674,417 $0.76
PNC Bank $88,175,082 $574,713 $0.65
TD Bank $76,475,518 $446,954 $0.58
Chase Bank $695,497,000 $3,976,000 $0.57
Keybank $64,220,946 $365,043 $0.57
Capital One $76,939,943 $354,905 $0.46
HSBC Bank $85,562,607 $228,110 $0.27
Citibank $240,545,000 $638,000 $0.27
ING Bank $71,769,528 $0 $0.00

I find it interesting how the bank with one of the largest physical presences (Bank of America) as well as some of the highest fees is also in the most trouble. A simple Internet search of Bank of America will reveal a plethora of unsavory articles about this behemoth.

When looking at these numbers, it’s obvious that banks that have large “brick and mortar” presences such as Bank of America have the highest fees. Banks whose presence is largely internet based (such as ING Citibank and HSBC) have some of the lowest fees around.
Nevertheless, it’s clear that when comparing fees for savings accounts and checking accounts, not all banks are created equal, so customers should look closely and weigh the fees, features, and conveniences of each bank to figure out the best fit for them.

According to FDIC data, account fees include:

Monthly maintenance charges
Deposits and withdrawals
Early account closings
Inactive accounts
Insufficient funds fees
Stop payment fees
Certifying check fees
Other services

Small Is The New Big

While doing a search of ING’s website, they don’t have “branches”, they have “cafés”, a whopping 7 of them! The majority of their business is done over the internet, phone, and mail. Now I’m not touting ING’s services for publicity sake, I’m trying to make a point that the bank with the tallest buildings may not be your best choice. With the advent of the internet and websites such as this, there really is no excuse to not get access to the bank which is truly a match for you and your individual needs and budget.
There are also “loop holes” with other banks such as Chase, where if you open a Chase Premiere checking account along with a Chase Business checking account, you can escape many of the common fees other banks charge.

Research, knowledge, and being pro-active for your own behalf are really what will save the day in the never-ending quest for free banking. Online resources such as http://www.fdic.gov/ can be very beneficial in determining what banking institution is right for you.

Disputing a Credit Report

FACT: Credit reporting is a voluntary and for-profit enterprise.

FACT: The US government does not endorse, or promote the credit reporting industry.

FACT: Credit reporting companies (also known as credit bureaus) are not part of the federal government.

If the credit reporting agencies, (most notably Equifax, Experian, and TransUnion) are no more part of the federal government than say FedEx or Wal-Mart; why are we so intimidated by them? The main reason is because they wield so much power and control over our financial futures and survival.

How to Obtain Your Credit Report

You are allowed, by law, to obtain for free one copy of each of your three credit reports every 12 months from http://www.annualcreditreport.com/. If you would like to see your credit report on a regular basis, a very inexpensive and easy to use site is http://www.truecredit.com/.

When Would You Want to Dispute Items on Your Credit Reports?

You are allowed to dispute any misleading, inaccurate or unverifiable information on your credit report anytime you want. The federal government does stipulate per the Fair Credit Reporting Act that all information on your credit report must be accurate and verifiable. In today’s world where identity theft is now one of the top crimes committed, it is vital that you monitor your credit report on a regular basis to ensure you recognize all of the information listed as well as to catch errors or potential fraud.

How Do I Dispute Information On My Credit Reports?

It is possible to access credit information as well as to dispute information online from the credit bureaus own websites:

http://www.experian.com/
http://www.equifax.com/
http://www.transunion.com/

You may also dispute your derogatory information in writing. It is possible to access sample dispute letters by conducting simple Internet searches.

The addresses of the three credit bureaus are:

TransUnion
2 Baldwin Place
P.O. Box 2000
Chester, PA 19022

Experian
P.O. Box 2104
Allen, TX 75013-2104

Equifax
P.O. Box 740241
Atlanta, GA 30374-0241

What Do I Do After I Send My Dispute Letters?

The credit bureaus have 30 days (or a reasonable amount of time) to respond to your dispute. They typically will mail a results letter to you. This letter will explain if anything was deleted or corrected. It will also let you know if they need any additional information from you. Based on what response you get you will want to continue to update your dispute letter with the information that has not been corrected or deleted yet. Resubmit dispute letters as needed until your credit has been cleared or corrected to your satisfaction. Persistence is key when sending dispute letters to the credit bureaus.

Remember

Do not be intimidated by these companies. It is within your rights to dispute anything on your credit reports at any time. The credit reporting companies will also use strong language in order to discourage you from disputing your information. They have no law enforcement capabilities. They are just businesses. Not law enforcement or governmental entities.
Good luck and be persistent!

Credit Cards And Your Credit Score

Can Cancelling a Credit Card Affect My Credit Score?

Cancelling a credit card will affect your credit score, especially if you have had that card for several years. 15% of your FICO credit score is based on how long you have had that line of credit. The older the better. Once you cancel that card, you will lose that long history you had with the card and your score will go down.

How Do Credit Cards Affect My Credit Score?

Credit cards affect your credit score with two factors:

1. The balance on the credit card accounts for 30% of your FICO credit score. Anytime your balance exceeds 50% of the available credit, your credit score will be reduced due to a high utilization factor. The best case scenario is to keep the balance on your credit cards at 30% or less in order to take maximum advantage of your growing credit score.

2. The age of the credit card. The longer you have maintained that credit card the better the impact on your credit score it will be. Length of credit history accounts for 15% of your FICO score.

What If I Need To Close A Credit Card?

There may be instances where you really do need to close a credit card or perhaps you have too many cards and want to get rid of some. When scrutinizing which cards to close, look first at the cards that are the youngest (you haven’t had them for very long). And look at the cards that are closest to their limits. If you can pay those cards off, then close them, it will increase your overall utilization ratio and help your credit score. And because you are closing a newer card, your impact on the length of credit history on that card will be minimal.

How Many Credit Cards Should I Have? Is It Possible To Have Too Many Cards?

It is possible to have too many credit cards. It is difficult to say exactly how much credit is too much or how many credit cards are too many. FICO guards its algorithms very carefully, so it’s difficult to tell what these thresholds are. As a good rule of thumb, you will want to maintain around 3 to 4 credit cards.

Does Applying For Credit Hurt My Credit?

Yes, applying for credit does hurt your credit. Anytime you fill out a loan application, that lender pulls your credit report which causes an “inquiry.” These types of inquires are known as “hard inquiries.” They affect your credit score by about 10%. It is possible to even be denied credit because of too many inquiries. So it’s very important to not frivolously apply for credit you don’t actually need. On this website, we have a great place you can take a look at a few credit card offers.

What Is A Good Credit Score?

The FICO scoring model ranges from 300 to 850. Scores from 680 to 699 are considered "good." Scores from 700 to 720 are typically considered "excellent.”

Does Not Using A Credit Card Hurt My Credit?

By not using your credit card on a regular basis, banks could cancel the credit card because of lack of use. If the bank closes your credit card, it also does hurt your credit. A simple practice I tell my clients is to just put a tank of gas in your car once a month, then pay it off. That way it shows current usage and payments.

In Summary

Credit cards are the fastest way to build your credit and the fastest way to kill your credit (through misuse). It’s vital that everyone understands these basic principles and the impact they will have on your credit score and ultimately on your financial future.

Consumer Reporting Agencies- Who Is Gathering Data About You?

Believe it or not, you are for sale! Yes that’s right, every aspect of your life is up for grabs and there are companies making a lot of money with your personal information. These companies are known generally as consumer reporting companies. They gather data about you such as your credit and payment histories, mortgage histories, rental histories, checking account histories, medical and pharmacy histories, and the list goes on!

Sold To The Highest Bidder!

Once these companies gather your information, they put it up for sale for anyone who wants to purchase it. It’s a multi-billion dollar per year business! And in the information age we live in now, business is booming for them!

Important Information Regarding The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act was enacted by Congress in 1970 to reign in the almost Mafioso tactics consumer reporting companies would use in collecting and distributing your information, which made getting loans a very intimidating process. The thing with the FCRA, is it not only applies to consumer credit reporting, which we are most familiar with, it also applies to ANYONE who gathers data on you for any reason. In short, you are allowed to obtain the reports these companies are compiling about you. It’s one of your rights per the FCRA.

The following is a list of the most common credit reporting companies:

Casinos:

(APG) The Asia/Pacific Group on Money Laundering www.apgml.org
Central Credit Services GCA (Used to stand for Global Cash Access, now branded just as GCA) Their business is for casino check verification and for gambling markers.
702-855-3000
702-262-5000

Checking Accounts:

Certegy/Equifax 1-800-437-5120
CheckCenter/CrossCheck 1-800-843-0760
ChexSystems 1-800-428-9623 www.consumerdebit.com
International Check Services 1-800-526-5380
SCAN 1-800-262-7771
TeleCheck 1-800-710-9898

Consumer:

Equifax
P.O. Box 740241
Atlanta, GA 30374
1-877-784-2528
1-800-685-1111
www.equifax.com

Experian
P.O. Box 9701
Allen, TX 75013
1-800-493-1058
1-888-397-3742
www.experian.com

TransUnion
P.O. Box 2000
Chester, PA 19022
1-800-916-8800
1-800-888-4213
www.transunion.com

Teletrack 1-800-729-6981

LexisNexis 1-800-543-6862
www.lexisnexis.com

Background Checks:

http://www.choicepoint.com/

Employment:

ChoiceTrust Employment Reports 1-866-312-8075

http://www.theworknumber.com/

Insurance:

CLUE Auto History: 1-866-312-8076
CLUE Homeowner's History 1-866-312-8076
ISO's A-Plus Auto and Property Databases 1-800-709-8842

Medical Information:

Medical Information Bureau (MIB) 1-617-426-3660

Rental Information:

Accufax 1-800-256-8898
American Tenant Screen 1-800-888-1287
ChoicePoint Tenant History Reports 1-877-448-5732
National Tenant Network 1-800-228-0989
Tenant Data Services 1-800-388-2335
UD Registry 1-818-785-3905
First Advantage SafeRent 1-800-811-3495 http://www.saferent.com/

Mortgage Financing:

Innovis 1-800-540-2505

How Do I Get My Reports From These Companies?

You can obtain your own personal reports from these companies by either simply calling them and requesting it or submitting in writing your request per your Fair Credit Reporting Act rights. The companies will then send your report to you.

Many of my clients that I have worked with in the past feel almost violated that these companies exist and are farming their personal information. This is a very understandable feeling especially for people who are very weary of technology. My goal in this article is to make it less frightening by helping you understand some of your rights as it pertains to your personal information. You now have the basic information needed to see what THEY know about you. Good luck!