Creating a relationship with your bank is crucial when it comes to your finances. As we already know, it’s almost impossible to buy a house or car without good credit established, but many people don’t know where to start. Choosing the right bank will allow you to create a relationship based on trust, interdependence, and confidence when it comes to making financial decisions.
If you’ve ever tried to take a line of credit out from a bank, you know that one of the first questions they ask is if you have any accounts established with them. The reason is so they can see how you spend your money in order to decide how much money they can finance out. Having an established relationship with you bank will allow them to offer you lower fees on asset financing and credit cards. This is because they already know you as a customer, and the more trust established between the lender and the borrower, the better offers they can make you. The relationship will also allow you to grow your business or project because you’ll have someone to turn to.
Everyone has days where something doesn’t go as planned. Many banks have monthly service fees and charges and overdraft fees. When you have an established relationship with your bank, it is easy to waive those fees. Your lender can work with you to to pick the right options for accounts. Whether you are in school, own a business, just bought a home, or need a personal line of credit, your banker will help find the right option so that you can live financially stress-free. Having that relationship will come in handy in case anything negative may impact you. If you run into trouble, most banks will work with you to establish a relationship that will benefit both the consumer and lender.
Creating a lasting relationship with your banker allows you to have an advisor to turn to. The longer your relationship is established, the better communication you and your lender will have. You and your lender will create a sense of understanding, which will be crucial in identifying your needs and what the best ways of approaching them are. The goals of banks are to help consumers in the community reach their goals through relationship-management, therefore customer service is their number one priority. If you’re thinking of starting your own business or think you may need asset financing, it is a good idea to start creating a relationship with a bank that has missions and values you believe in.