Electronic banking makes financial matters much simpler. From a debit card to automatic bill payments to online bill payments or cash advance EFT debits; not having to go to the bank in order to process a money transaction makes our lives less complicated. How many trips to the bank did you make each week prior to online banking opportunities?
Banks and credit unions offer debit cards which work very similarly to credit cards, but the money is not borrowed. You pay form your debit card and the money is taken out from your bank account. Most merchants now accept debit cards and will even allow cash back. You can also use these cards at your bank’s ATM free of charge.
Automatic payments or scheduling payments work well for busy households. People no longer have to worry about mail delivery times as a factor for on-time payments. Automatic delivery helps keep those forgetful folks from missing the deadline. The automatic feature is also used as a trust building system put in place for those with sub-prime credit scores. When setting up new utility accounts, this payment option is put into for those with lower credit scores. It is a way the company can collect on their bill without leaving the ball in your court.
Cash advance companies make EFT deductions.
Similar, in a way, to automatic payments is the EFT debit from a cash advance or payday loan lender. When a loan is processed, the date for payoff is scheduled and the lender will set up an EFT draft which will take the money directly out of the borrower’s bank account on the agreed date. Many responsible lenders will place a courtesy call to the borrower to remind them of the debit. Customers appreciate the reminder and the care given by a good lender. A predatory lender will not make this phone call.
Online banking does more than just deduct money from an account. Most employers will set up direct deposit paychecks. One less trip to the bank is one convenience, another one is knowing that your money is in the account at the beginning of the payday. Not only is it convenient time wise but also better protects your bank accounts from possible overdrafts.
Online banking supports cash advance convenience.
As with direct deposits, online cash advance lenders will deposit money directly into your bank account. Apply online and receive money in the bank without having to get dressed. Now that is an online banking perk!
Whether you choose to utilize this service in your day to day life is totally up to you. Some people still don’t trust the system and want to hand their paycheck over to the bank teller. Others will want to make their payment directly to the utility company. Believe it or not, some people still refuse to pay any other way than cold hard cash. This option may work for their bank account, but it does nothing for their credit history. Without a credit history, a credit score will remain low and may hinder future financial opportunities like buying a new home or car.
Talk to your bank about what they offer for online services. Take advantage of the free management opportunities. It’s a busy world out there, and not having to spend time at the bank each week will free up a lot of it.
