First time here?

January 31 1 Comment latest by Spencer

After I heard about “John” getting a poor car loan (we’re still not sure why, although it might have something to do with his poor credit and being very dumb), I started feeling sorry for him. This is despite the fact that his very-nice friend kept trying to help him, but John kept trying to blow it off and pretend nothing was wrong.

Anyway, I called up a friend of mine at the Credit Union National Association and asked him to see what he could do. I’m a big fan of credit unions, and in fact I spoke at their national conference last month. So I thought this would be a great opportunity to introduce credit unions into this troubled situation and to iwillteachyoutoberich readers. (Credit unions often offer far better loan rates for young people, as well as a bunch of better services than banks. Basically, they’re not-for-profit and are member-owned, which means their financial services are often far more competitive than Big Mean Banks. I’ll write more about them later.)

Anyway, my friend at the National Association of Credit Unions cheerfully agreed to look into it, and he started making some calls.

That’s when I got the next email, which made me want to invite Hulk Hogan to sit in a little red wagon and ride over my frail body repeatedly. It’s coming up in the next post.

Posted January 31, 2007 under Miscellaneous

Email Print Share: Digg/Del.icio.us/Permalink

Part 3 of the car debacle

Part 5 of the car debacle

COMMENTS: Leave yours...

Spencer February 1st, 2007: Credit unions can mean more than good loan rates and convenient services. If you are not currently a member of a credit union you really should look into applying, especially if you don’t have your finances set up yet. Find a few in your area and look at their brochures and Web sites to see which has the services and online banking features most valuable to you.

I am just learning about personal finance (and financial responsibility in general) and have made mistakes in the past 2-3 years.
The first time I wrote a check that should have bounced, they covered the extra amount by putting my account at a negative value. Sure, they charged me an overdraft fee, but that’s better than the check bouncing and being charged additional fees by that party.
When I had no credit history and applied for my first credit card to start building some, they gave me a variable rate card starting at 6.50% (not introductory, no other tricks or catches). It has only gone up due to my irresponsibility (high balance, small payments) and is still significantly lower (11.50%) than my friends’ cards even though they pay their balance in full, on time.
I have made mistakes and and am paying for them now, but I’m paying a lot less than I would be if I had gone through a bank and one of those cards advertised on TV or in the mail.

And about the not-for-profit member-owned aspect.. My CU overhauled their online banking system last summer and it had some problems. I got fed up with it and made a serious complaint. I got a (non-automated) response within 24 hours apologizing for the issues and acknowledging some of them were beyond her technical level, so somebody higher up would contact me soon. A few days passed and I received an email from the CTO asking when the best time to call me would be. That’s pretty good service.

About Me

More Info / Contact Me

I'm Ramit Sethi.

I'm a recent graduate of Stanford, where I studied technology and psychology. Now I'm the co-founder & VP of Marketing for PBwiki, a wiki startup in Silicon Valley.

Speaking

I speak at companies and schools on personal finance and entrepreneurship.

Invite me to yours.

The Book

I'm thrilled to announce that I've signed a book deal with Workman Publishing for the I Will Teach You To Be Rich book.

More details about the book.

A Thousand Splendid Suns

The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (3rd Edition)

Guide To Kicking Ass

Ramit's 2007 Guide To Kicking Ass
New essays on personal finance, personal entrepreneurship, making mistakes, and more. Plus lots of ranting, mocking, and tactical tips. 30-page PDF for $4.95.

Part 4 of the car debacle

COMMENTS

Leave your comment