Saving Loan Credit Cards

When did credit cards become such a way of life that you can get one anywhere. Credit cards are offered by stores, credit card companies, banks, credit unions and now savings & loan institutions. Credit cards are perhaps today biggest financial draw back in the average household. Research shows that some people have as many as one hundred credit cards. Whether they use the or not is not an issue. The fact that they have them is.

The Savings & Loan Association is a financial institution much like a bank but it is organized either as a cooperative or a corporation and the depositors are members of the Association. When you open an account with a Savings & Loan Association you are not a depositor, as defined by a bank, you are a member of that Association. The Savings & Loan Association offers all of the same services a bank does namely: checking and savings accounts, home mortgages, interest bearing accounts, certificate of deposits and all other banking services. Since a Savings & Loan is a depositor owned organization the money that is deposited is savings account or in share accounts pays a dividend or interest.

The Saving Loan Association credit cards are not different from the actual credit card received from a bank or a credit card company.

• When you get a Visa or Master Card from the S&L you will not pay interest if your pay your bill in full each month. Should you have to pay an interest fee it would have a prime rate of about five percent.
• If the card is used a specific amount of times each year the annual fee is no charged.
• Some S&Ls have a cash back program based on purchases.
• You can check your statement each month.
• There is a grace period and if you pay your bill in full each month you will not be charged interest or late fees.
• There are no fees for cash advances.
• If you use the S&Ls ATM you will not be charged.

The fact that you are getting a Visa or Master Card is why the services and fees are like other financial institutions, as they are governed by the Visa and Master Card companies.

Savings & Loan Associations make residential home mortgages primarily. Although they take deposits in savings accounts a pay interests they are primarily financial institutions for mortgages. They do not make any business loans but they do make loans to home buyers. The money that is deposited is used for home improvement loans, construction loans and loans with which to purchase new homes. Although they do not make direct business loans a homeowner with substantial equity in his home can make a home loan and use it for his business. If however, a home owner should default on the mortgage, like any other financial institution the S&L can foreclose on the property and sell if, often for a profit.