How many of you are 'unbanked'? (link)

[Cosmos]

This article got me wondering how somebody can go unbanked. I might be showing my age but I'm trying to understand how somebody can function without having a checking account. Through the years my wife and I write fewer personal checks due to having a super rewards card (Costco/Citibank Visa) but even still I can't fathom going completely unbanked. What are the advantages? BTW, I have no-fee checking with Chase.

https://www.msn.com/en-us/money/rea...e-texas-is-in-2019/ar-BBVBSNE?ocid=spartanntp

Thank you.

 

[Fox Chapel Lion II]

I absolutely hate banks and have nothing to do with them whatsoever. Banks suck - they have been screwing the depositors/customers hard for years with their fees on top of fees on top of fees.

And don't even get me started with the out-and-out criminals like Wells and BofA. Remember the bailouts for the banks? Make all the terrible decisions you like and get bailed out by the taxpayers. Nice work if you can get it.

There's not a pit in hell deep enough for the bastiges.

I've been a lifetime member of Pennsylvania State Employees Credit Union. Checking, money market, Christmas club, vacation club, auto loans, line of credit - they have everything I've ever needed. They offer mortgages, construction loans, HELOC. If you are a small business they have programs for you too.


Anyone who is eligible for credit union membership and does not take advantage, I don't know what to say, unless your goal in life is to get screwed over and make banksters rich.

Any business where Karen Peetz can rise to the top, that tells you all you need to know.

 

[The Spin Meister]

Venmo!

 

[Thomas1945]

I think that the blood bank and the sperm bank are useful. Regular banks not so much.

 

[Jovialgent]

I absolutely hate banks and have nothing to do with them whatsoever. Banks suck - they have been screwing the depositors/customers hard for years with their fees on top of fees on top of fees.

And don't even get me started with the out-and-out criminals like Wells and BofA. Remember the bailouts for the banks? Make all the terrible decisions you like and get bailed out by the taxpayers. Nice work if you can get it.

There's not a pit in hell deep enough for the bastiges.

I've been a lifetime member of Pennsylvania State Employees Credit Union. Checking, money market, Christmas club, vacation club, auto loans, line of credit - they have everything I've ever needed. They offer mortgages, construction loans, HELOC. If you are a small business they have programs for you too.


Anyone who is eligible for credit union membership and does not take advantage, I don't know what to say, unless your goal in life is to get screwed over and make banksters rich.

Any business where Karen Peetz can rise to the top, that tells you all you need to know.

I am also a Credit Union member and agree it is far better than any bank I ever used.

 

[LionDeNittany]

This article got me wondering how somebody can go unbanked. I might be showing my age but I'm trying to understand how somebody can function without having a checking account. Through the years my wife and I write fewer personal checks due to having a super rewards card (Costco/Citibank Visa) but even still I can't fathom going completely unbanked. What are the advantages? BTW, I have no-fee checking with Chase.

https://www.msn.com/en-us/money/rea...e-texas-is-in-2019/ar-BBVBSNE?ocid=spartanntp

Thank you.

Some people remain unbanked because they spend their money as they earn it. If you work in the service industry or own a service industry business you will get it. This is why LEGAL check cashing businesses must remain around. Otherwise you'll get these people being screwed even more.

What Bank of America and other large banks have created in terms of access to funds is amazing. Does anyone run a ledger anymore? I don't think so. I think as costs go down, the number of people being banked will go up.

LdN

 

[NittPicker]

I'm also a decades long member of PSECU. I've never had any problems like at Wells Fargo where accounts are created in your name without you knowing it. Commercial banks suck ass. Their goal is to legally (and sometimes illegally) take as much money from the customer as possible. I always laugh when I hear commercials in which banks try to pass themselves off as benevolent guardians of your hard earned money. They'd take every penny if they could get away with it.

 

[MJG-90]

I am also a Credit Union member and agree it is far better than any bank I ever used.

If being a credit union member only means unbanked, then I've been unbanked for about 37 years.

 

[Woodpecker]

sperm bank are useful

Substantial penalty for early withdrawl.

 

[Op2]

This Mojo Nixon song from the 80s seems appropriate for this thread.

 

[Raffycorn]

Some people remain unbanked because they spend their money as they earn it. If you work in the service industry or own a service industry business you will get it. This is why LEGAL check cashing businesses must remain around. Otherwise you'll get these people being screwed even more.

What Bank of America and other large banks have created in terms of access to funds is amazing. Does anyone run a ledger anymore? I don't think so. I think as costs go down, the number of people being banked will go up.

LdN

I’ve mentioned this before, but I’d love to see the USPS be statutorily allowed to step up and provide a few basic “banking” related services: check cashing, small loans, basic checking account services, etc. primarily geared towards low and fixed-income folks. There’s a lot of places where banks have decided it isn’t profitable to open a physical branch - either lower income or rural areas - that still have a post office, and those groups are more likely to both be traditionally unbanked and lack regular access to a device that supports mobile banking.

 

[anon_1eeb2b426hv3y]

I absolutely hate banks and have nothing to do with them whatsoever. Banks suck - they have been screwing the depositors/customers hard for years with their fees on top of fees on top of fees.

And don't even get me started with the out-and-out criminals like Wells and BofA. Remember the bailouts for the banks? Make all the terrible decisions you like and get bailed out by the taxpayers. Nice work if you can get it.

There's not a pit in hell deep enough for the bastiges.

I've been a lifetime member of Pennsylvania State Employees Credit Union. Checking, money market, Christmas club, vacation club, auto loans, line of credit - they have everything I've ever needed. They offer mortgages, construction loans, HELOC. If you are a small business they have programs for you too.


Anyone who is eligible for credit union membership and does not take advantage, I don't know what to say, unless your goal in life is to get screwed over and make banksters rich.

Any business where Karen Peetz can rise to the top, that tells you all you need to know.

Right there with you. PSECU for life. (And I wasn’t a state employee very long.)

 

[heckmans]

This article got me wondering how somebody can go unbanked. I might be showing my age but I'm trying to understand how somebody can function without having a checking account. Through the years my wife and I write fewer personal checks due to having a super rewards card (Costco/Citibank Visa) but even still I can't fathom going completely unbanked. What are the advantages? BTW, I have no-fee checking with Chase.

https://www.msn.com/en-us/money/rea...e-texas-is-in-2019/ar-BBVBSNE?ocid=spartanntp

Thank you.

1. being a member of a credit union is not being "unbanked"
2. had a sister-in-law that was unbanked. Young, hairdresser, broke. People that are unbanked generally don't have enough money to meet account balance minimums. Many are in (primarily) cash businesses. Most didn't get any sort of financial education from their parents. There are places where you can go to pay bills in cash. If not, they get a money order at the Piggly Wiggly or 7-11
3. The article says Mississippi is the highest state at 15% being unbanked. It also happens to be (one of) the poorest. The unbanked are not people of means
4. It would be nearly impossible to be "unbanked" if you are a moderately successful person. Mortgages, credit cards, retirement accounts are all done by financial institutions and you're getting none of them without a bank account and assets.
3. This is not a defense of banks, but FWIW, Wells Fargo was not the bad apple. First Union was a horribly managed bank. They bought Wachovia and took the name b/c they had a better reputation, but kept the FU structure and standards. In the wake of the housing crash, the govt all but forced WF to buy out Wachovia before they folded. They inherited a mess.

 

[Obliviax]

1. being a member of a credit union is not being "unbanked"
2. had a sister-in-law that was unbanked. Young, hairdresser, broke. People that are unbanked generally don't have enough money to meet account balance minimums. Many are in (primarily) cash businesses. Most didn't get any sort of financial education from their parents. There are places where you can go to pay bills in cash. If not, they get a money order at the Piggly Wiggly or 7-11
3. The article says Mississippi is the highest state at 15% being unbanked. It also happens to be (one of) the poorest. The unbanked are not people of means
4. It would be nearly impossible to be "unbanked" if you are a moderately successful person. Mortgages, credit cards, retirement accounts are all done by financial institutions and you're getting none of them without a bank account and assets.
3. This is not a defense of banks, but FWIW, Wells Fargo was not the bad apple. First Union was a horribly managed bank. They bought Wachovia and took the name b/c they had a better reputation, but kept the FU structure and standards. In the wake of the housing crash, the govt all but forced WF to buy out Wachovia before they folded. They inherited a mess.

right...I'd add:

• Most "unbanked" go paycheck to paycheck
• Most "unbanked" use check cashing companies
• Walmart has weighed in and has partnered with several banks to "bank" customers
• There has been some activity to bank people via mobile phone with a debit card and cardless ATM Access. (AxiomBank)
• Lots of unbanked include the homeless, convicts, money launderers (drug dealers, pimps, gamblers, etc.) and dooms dayers. Also, lots of migrant workers or illegal aliens. Foreign college students as well.
• I knew a guy, a chef, that was illegally brought to the USA and paid over $250k at a high end place in LA. He couldn't get a checking account so cashed his checks and stuffed them in a mattress. He was robbed of his cash by someone that knew him. he quit and went back to Italy.
• Lots of unbanked are just paranoid people that don't want the govt to see what they are making or doing.

 

[psu1969a]

We have accounts in a traditional bank and a credit union. We use two institutions to maximize coverage of savings covered under federal deposit insurance corporation. Additionally, we use a bank to hold valuable documents such as but not limited to: wills, powers of attorney, living wills, passports, social security cards, birth certificates, insurance policies, marriage license, vehicle titles, etc.

 

[tboyer]

Schwab bank. no fees, no minimum balance, no catches, no fine print. Good simple interface, good bill pay, check deposit through phone, they reimburse ATM fees in the US and overseas and anything you don't need in your checking account you can put in a high-yield (now about 2.5%) money market.

I'm sure it's a loss leader for Schwab -- they figure you get their free checking account, they can sell you financial services. But they're very low-key about it, they don't hassle you in any way. Very impressed with them.

 

[gamblepsu]

right...I'd add:

• I knew a guy, a chef, that was illegally brought to the USA and paid over $250k at a high end place in LA. He couldn't get a checking account so cashed his checks and stuffed them in a mattress. He was robbed of his cash by someone that knew him. he quit and went back to Italy.

So he was anti-fire proof safe too?

 

[denniskembala]

Banks are often avoided by the miserly, the miserable, and those wishing to elude the authorities.

I use checking sparingly, savings when convenient. Those who tie up lottery and fast service lanes for bill paying, money orders, and check cashing often wish to avoid detection for whatever dubious reasons.

 

[Obliviax]

So he was anti-fire proof safe too?

LOL...well, I said mattress but I don't know for sure. I mean, I have a fireproof safe that weighs about 30 lbs. If someone breaks in and wants it, it is gone!

 

[Obliviax]

Banks are often avoided by the miserly, the miserable, and those wishing to elude the authorities.

I use checking sparingly, savings when convenient. Those who tie up lottery and fast service lanes for bill paying, money orders, and check cashing often wish to avoid detection for whatever dubious reasons.

Agree....and a lot have had their 'cards' taken away because they can't handle them. Suze Orman discusses this all the time. It is a recommendation, from her, to cut cards and pay with cash because a) you can only spend what you have and b) you feel the pain when you are peeling the 20's off the stack.

 

[sluggo72]

1. being a member of a credit union is not being "unbanked"
2. had a sister-in-law that was unbanked. Young, hairdresser, broke. People that are unbanked generally don't have enough money to meet account balance minimums. Many are in (primarily) cash businesses. Most didn't get any sort of financial education from their parents. There are places where you can go to pay bills in cash. If not, they get a money order at the Piggly Wiggly or 7-11
3. The article says Mississippi is the highest state at 15% being unbanked. It also happens to be (one of) the poorest. The unbanked are not people of means
4. It would be nearly impossible to be "unbanked" if you are a moderately successful person. Mortgages, credit cards, retirement accounts are all done by financial institutions and you're getting none of them without a bank account and assets.
3. This is not a defense of banks, but FWIW, Wells Fargo was not the bad apple. First Union was a horribly managed bank. They bought Wachovia and took the name b/c they had a better reputation, but kept the FU structure and standards. In the wake of the housing crash, the govt all but forced WF to buy out Wachovia before they folded. They inherited a mess.

Pretty sure Citi wanted Wachovia and had a deal in place to buy them. In the middle of the night they called and said they changed their minds and we’re going with WFC. Shelia Blair , the HÉAD of the FDIC was on the other line. Nothing Citi could do
You are correct though they inherited a mess

 

[Art]

I’ve mentioned this before, but I’d love to see the USPS be statutorily allowed to step up and provide a few basic “banking” related services: check cashing, small loans, basic checking account services, etc. primarily geared towards low and fixed-income folks. There’s a lot of places where banks have decided it isn’t profitable to open a physical branch - either lower income or rural areas - that still have a post office, and those groups are more likely to both be traditionally unbanked and lack regular access to a device that supports mobile banking.

What you describe has been in place in Japan for 150 years. Japan Post Bank is the world's largest financial institution as measured by deposits. Loans , though, are limited to overdraft facilities secured by the borrower's time deposits.

 

[bison13]

Agree....and a lot have had their 'cards' taken away because they can't handle them. Suze Orman discusses this all the time. It is a recommendation, from her, to cut cards and pay with cash because a) you can only spend what you have and b) you feel the pain when you are peeling the 20's off the stack.

I do the opposite. Put everything on a card that pays me a rate back on every purchase and then pay it off at the end of the month. I havent paid interest on a credit card in 20 years plus I've been able to have balance credits, buy gift certificates for less than their value, have miles towards flights, etc. AS with anything else with money, you need self control.

 

[dwiz]

I open a chase card about every 6 months (there are 5 total you can get that give airline bonuses). You can get about 120,000 miles for each one if you spend 4k/5k in the first 3 months. Go to the gas station, buy a visa gift card for $400, do that 10 times, you've hit the spend limit and only paid $30 (activation fee on the visas). Take the visa gift cards to the grocery store and buy money orders and make them out to yourself and deposit in the bank. Pay off the card after the first billing cycle, transfer all the miles to your chase freedom card and close the account. You can get the same card 2 years later. FICO score goes to 840. You transfer those miles to any of their partners and fly first class anywhere in the world, stay at any hotel, do whatever you want.

The only thing better than this was when the treasury thought it'd be a great idea to sell $1 coins by phone. You'd order the coins with your credit card, they'd show up at your house and you take them directly to the bank and deposit them. You could pull it off 4 times a month, and you could get as many as you want. It didn't really get the coins into circulation like the treasury wanted, but damn if it didn't rack us up millions of miles.

 

[doofis]

I think that the blood bank and the sperm bank are useful. Regular banks not so much.

Thing about sperm banks is... when you make a deposit, you lose interest.

 

[Obliviax]

I open a chase card about every 6 months (there are 5 total you can get that give airline bonuses). You can get about 120,000 miles for each one if you spend 4k/5k in the first 3 months. Go to the gas station, buy a visa gift card for $400, do that 10 times, you've hit the spend limit and only paid $30 (activation fee on the visas). Take the visa gift cards to the grocery store and buy money orders and make them out to yourself and deposit in the bank. Pay off the card after the first billing cycle, transfer all the miles to your chase freedom card and close the account. You can get the same card 2 years later. FICO score goes to 840. You transfer those miles to any of their partners and fly first class anywhere in the world, stay at any hotel, do whatever you want.

The only thing better than this was when the treasury thought it'd be a great idea to sell $1 coins by phone. You'd order the coins with your credit card, they'd show up at your house and you take them directly to the bank and deposit them. You could pull it off 4 times a month, and you could get as many as you want. It didn't really get the coins into circulation like the treasury wanted, but damn if it didn't rack us up millions of miles.

Just opened a Bonvoy card to get the 100,000 marriott miles.

 

[flash86]

Just opened a Bonvoy card to get the 100,000 marriott miles.

Not bad. I have United for travel and made my 2nd card Amazon ‘ cause we’re big users; pay them off.Not giving Chase or Jeff B interest!

 

[Howie'81]

 

[Cosmos]

I open a chase card about every 6 months (there are 5 total you can get that give airline bonuses). You can get about 120,000 miles for each one if you spend 4k/5k in the first 3 months. Go to the gas station, buy a visa gift card for $400, do that 10 times, you've hit the spend limit and only paid $30 (activation fee on the visas). Take the visa gift cards to the grocery store and buy money orders and make them out to yourself and deposit in the bank. Pay off the card after the first billing cycle, transfer all the miles to your chase freedom card and close the account. You can get the same card 2 years later. FICO score goes to 840. You transfer those miles to any of their partners and fly first class anywhere in the world, stay at any hotel, do whatever you want.

The only thing better than this was when the treasury thought it'd be a great idea to sell $1 coins by phone. You'd order the coins with your credit card, they'd show up at your house and you take them directly to the bank and deposit them. You could pull it off 4 times a month, and you could get as many as you want. It didn't really get the coins into circulation like the treasury wanted, but damn if it didn't rack us up millions of miles.

Now that's working the system! I'm jealous.

We don't fly much so a merchant rewards card serves our needs, such as the Costco-Citibank Visa. We earned $739 and $662 in "Costco Cash" in 2018 and 2017, respectively. Interest paid: $0. We use it in lieu of writing personal checks. Requires little discipline. We simply don't buy what we don't need.

I also had the Capital One Savor card. Special introductory offer of $500 cash back if $3,000 charged within the first three months. So I used it for a new HVAC system installation. It has a $95 annual fee waived the first year, but I cancelled it well before the fee was due. I got $200 cash back from Bank of America on a similar card deal. I'm constantly on the lookout for rewards like these to supplement my Costco card.

 

[Obliviax]

It's Friday. I may not be baked but I am turnt.

 

[psuguy43]

I open a chase card about every 6 months (there are 5 total you can get that give airline bonuses). You can get about 120,000 miles for each one if you spend 4k/5k in the first 3 months. Go to the gas station, buy a visa gift card for $400, do that 10 times, you've hit the spend limit and only paid $30 (activation fee on the visas). Take the visa gift cards to the grocery store and buy money orders and make them out to yourself and deposit in the bank. Pay off the card after the first billing cycle, transfer all the miles to your chase freedom card and close the account. You can get the same card 2 years later. FICO score goes to 840. You transfer those miles to any of their partners and fly first class anywhere in the world, stay at any hotel, do whatever you want.

The only thing better than this was when the treasury thought it'd be a great idea to sell $1 coins by phone. You'd order the coins with your credit card, they'd show up at your house and you take them directly to the bank and deposit them. You could pull it off 4 times a month, and you could get as many as you want. It didn't really get the coins into circulation like the treasury wanted, but damn if it didn't rack us up millions of miles.

This sounds brilliant. I just have a few questions for ya. I have already been through a handful of miles CC's for this exact reason (heck, I adopted my dog by using a caah back bonus on one of these cards). Are you sure that you can reopen a card 2 years later and still get the rewards? Secondly, doesn't all of the openings and closing make your credit relatively young, cause a high number of hard inquiries, and eventually hurt your credit? I have a credit score of 800 and do not want to mess that up.

That being said, I am very interested! Thanks