Tuesday, July 22, 2008

Credit unions: Safe as a banks

NEW YORK (CNNMoney.com) -- Gerri Willis answers reader's questions.

1. How safe are credit unions?

Is it possible to find out about credit unions? How safe are they at this time? - Willie, Florida

Credit Unions are just as safe a bet as banks are. Instead of the FDIC guarantee, you have the NCUA to back up your accounts up to the same amounts.

The NCUA stands for the National Credit Union Association. According to them, there have been six credit union failures so far this year, but as long as you have $100,000 or less in an individual account or $250,000 or less on a retirement account, you're insured. Plus, credit unions may have marginally better interest rates and rates on CDs, savings accounts and money markets.

To find a credit union in your area, go to

2. Do credit checks lower your FICO score?

I have registered with a number of temp/perm agencies all of which ask and insist on allowing them to check my credit report. I know that some inquiries to a credit report lowers the FICO score. Do these kinds of inquiries lower the FICO score also? - Elizabeth

Good news here Elizabeth. A potential employee inquiry will not lower your FICO score. If you check your own score, that won't impact your FICO score either.

While you are correct that some inquiries do impact your score. For example, if you apply for a credit card, an auto loan or a mortgage, that will lower your score. Basically anytime you seek access to more credit your score will be lowered.

3. Do lenders have to offer student loan consolidation?

Are lenders required to offer loan consolidation opportunities? My daughter has her student loans with Sallie Mae we searched their website for information regarding loan consolidation, but apparently hey do not offer it any longer. - George, NY

Lenders don't have offer consolidation loans or any particular type of loan. And your problem is a common one. A lot of lenders have stopped consolidating loans, including Sallie Mae.

source : http://money.cnn.com/

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