this is it
this is what you've been working for
welcome to watch mojo
and today we're counting down our picks
for the top 10
dirty bank secrets you control the debt
you control everything i'm wondering
what this fee on my account is
i uh i can't really talk about that from
a financial standpoint
you are now in heaven for this list
we'll be ranking the secrets and tips
the banking industry prefers that you
not
know do you know anything we missed
spill the beans down in the comments
number 10 don't bet on certain insurance
products
all right and what is the reason you're
requesting a loan today
wait for it gasoline excuse me
don't rush me don't rush it thank you i
feel rushed hey we get it
taking out a loan or a line of credit
with the bank can be a scary proposition
often times a bank will offer up
insurance on these financial products
framing it as a safety net of sorts in
case you fall on hard times and have
difficulty paying back your debt
what may i do for you we want to take
out a hefty loan
of course of course do you have an
account with us and how
what is your account
number unfortunately there are
occasional exceptions to these insurance
plans
that involve reading some very fine
print these exceptions are rarely in
favor of the borrower meaning that the
bank can collect on a portion of your
debt
even if you paid for an insurance plan
that is the deal
so be sure to take all the time you need
with that contract before you sign up
number nine banks can reorder your
transactions
balancing a checkbook can be complicated
if you're someone with a lot of
transactions
if you're someone who doesn't keep a lot
of cash in your account the order of
your purchases and deposits can
absolutely make the difference between
your account being in the black or
slipping into the red how could all that
money be gone some banks
can order your daily transactions by
their amount
rather than the order in which they
occurred meaning that you could become
overdrawn
by accident where's my money as we told
you we can't cover that amount within 24
hours
furthermore some institutions may run
your deposits
after your purchases or take a while to
factor in that check
meaning that you may incur overdraft
fees at the worst possible time
so what are we all supposed to do
were you supposed to give up and accept
that this is the way of the world
i'm not gonna do that number eight a
little debt can sometimes be useful
banks make money off lending and debt
but you don't have to take on a lot of
debt in your life
after all getting yourself into
mountains of debt is not a good idea
tony i'm sorry i'm sorry i'm just having
a bad luck
just got worse however having absolutely
no debt history can be just as
detrimental
especially when attempting to convince a
bank to lend to you
it's important from their end to know
that you're a trustworthy individual who
has a history of paying back
debt lannister always
pays his debts a good idea for young
borrowers is to start small with a store
card at a place where you do a lot of
shopping
preferably one with a low credit line
that way you can build a little credit
without worrying about getting in over
your head with debt
you control the debt
you control everything number seven cash
is king
this is it
this is what you've been working for
have you ever been to a restaurant or
store that
only takes cash it may seem to be an odd
choice in the modern day but there's a
very rational reason behind it
businesses get charged for every swipe
of a credit or debit card
often including refund swipes and even
miss swipes
so you can understand why they just
rather not deal with that sort of cash
bleed
on the other hand some banks or credit
unions also
charge their members a fee when they
swipe their cards as debit rather than
credit
it's usually something small like a
quarter but it's still a wise move to
read the fine print
and make sure this isn't something that
affects your account
number six let your bank know when you
travel
most of us love to travel and oftentimes
the excitement of our upcoming trip can
factor into forgetting something
very important like the subject of this
entry
be sure to let your bank or credit card
company know in advance when you're
planning to leave the country on
vacation
otherwise be prepared to get hit with a
lot of fees for swiping your credit or
debit cards while on foreign soil
think of it sort of like roaming on a
cell phone plan it's super expensive
and best to be avoided if you can do so
at all costs
either bring cash or give your bank a
call and explore your options
number five foreign exchange rates
speaking of cash
the next entry on our list is something
you should think about before
and after any vacation into a foreign
country
it may seem smart and convenient to
exchange any of your own currency at a
bank
to the denomination of where you're
going but there are other options
oftentimes banks won't be offering you a
very good deal when it comes to an
exchange rate
not when there are specialists you can
visit to get a smidge more for your
money
oh and be sure to do this before
returning home too
there are usually plenty of options for
tourists to do just this
regardless of destination from a
financial standpoint
you are now in heaven
number four the right of set off the
right of set off
also known as a banker's lien refers to
when you have both a checking or savings
account
and a loan from that same bank this
could be a mortgage
business or personal loan and it
basically means that the bank
can take money from your savings or
checking should you fail to make
payments on your other loan
now any sort of big money loan should
always be negotiated in good faith
but sometimes things happen and we can't
make those monthly payments
this is where the right of set off comes
in transferring your funds into another
bank could delay this
but only as long as it takes for the
bank to come at you by other means
so be aware number three credit over
debit
no one likes to talk about fraud but
unfortunately it's a growing concern in
today's digital world
there isn't a one-size-fits-all solution
but among the possible fixes the card
industry is recommending
is a technology called tokenization
which replaces cardholder information
such as account numbers and expiration
dates with unique series of numbers that
validates the customer's identity
debit cards may be favored for speed and
convenience but it's paying by credit
that gives you the most protection when
it comes to fishy
activity when you use your credit card
you're protected under the liability
umbrella of the credit company
whereas when you use a card as debit any
fraudulent activity still results in
your money being spent
who are the perpetrators of these cyber
crimes they could be
sitting next door behind a keyboard
there or they could be on the other side
of the world quite frankly because those
funds are gone there's a smaller window
for you to report any fraudulent
activity
after this window closes you may be held
liable for more than you bargained for
we are screwed hey no hey i don't want
to hear that defeatist attitude i want
to hear you
upbeat we're screwed number two
banks are open to negotiation our offer
is final and it's more than fair
wait a minute i i thought we're
negotiating here
okay so being overdrawn sucks but did
you know that you can contest that fee
and get it reversed
the world of banking is sort of similar
to the cellular market in that there's a
lot of competition
as a result banks want to keep you as a
customer and are often willing to work
things out when it comes to fees or
contested charges
it's a home equity loan then give me a
business loan these 13 locations you own
them me personally
it's your business correct you own it
the same goes for credit card companies
missed a monthly payment call them up
and ask for a one-time forgiveness of
the fee
getting whacked with multiple overdraft
charges maybe imply that you might take
your business elsewhere
credit apr rates are also on the table
when it comes to negotiation so try to
get the best
deal i've never negotiated you mind if i
try no no before we name our number one
pick
here are a few honorable mentions don't
pay off that bill early
for certain bills take your time lest
you be charged a fee
i'll do this it can't be that bad it's
just like a band-aid
it's gonna be fine
closing unwanted cards banks look at
credit utilization when considering
loans
well the decision you've got to make is
do
i want to live with credit or do i want
to in debt
or do i want to live without it
if you're going to live without it then
you can close up everything atm fees
don't withdraw out of your network
according to a new report from
bankrate.com
out of network atm fees have never been
higher
up 55 percent in just the last decade
free is relative checking accounts can
hide hidden fees
i'm wondering what this fee on my
account is
i uh i can't really talk about that why
not
because that is a
what that's a hidden fee wait but i have
free checks
bank tellers aren't financial experts
consult a specialist
welcome miami mutual bank how may i help
you my name is frank taylor i'm a
co-pilot for pan am i'd like to
cash this check here and then i'd like
to take you out for a steak dinner
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[Music]
number one fees fees fees
oh come on are those your bank fees
yeah we'll say it again fees
fees are a huge part of how banks
actually make money from holding on to
your money
they're relying on you making a mistake
now and then and paying the price in
fees
fees and more fees we're seeing little
niggling and nickel and diming as they
call it bits and pieces here and there
and uh you can tell that they're trying
to make money from the retail customer
but they're not all doing it in the same
way this is especially important when
entering into any sort of big money bank
loan like a mortgage
mortgage fees often lurk within the tiny
print of the banking contract
so it's of the utmost importance to read
all documents over and understand what
you're getting into now here's another
example
this bank statement is for a custodial
savings account for the son
of a colleague at the start of the
quarter it had 192 dollars in it
but as you can see there was a string of
withdrawals made by chase bank
the same goes for checking accounts make
sure that free account doesn't whack you
with any expensive maintenance fees
every month
and you'll be a smart saver isn't that
my money
this no this is mine what's that it's my
feed pile non-atm fee
that makes no sense oh customer service
issue
that's a feat do you agree with our
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[Music]
you