Are online banks legit?
Banks like Ally offer great rates and no fees due to the expenses they save by not having any brick and mortar locations. Seems to be working out but is this a smart move long-term?
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I don't use one but I think they are legit and a good niche. When was the last time you actually went into a bank branch? The generations who want or need to be able to walk into a branch on a regular basis are starting to not be around anymore. I don't know what they do about ATM fees but I seem to remember seeing that they reimburse them so as long as you can do everything online and talk to a live person occasionally, I think they're fine.
I want to transfer to Ally as my main bank. But I currently bank and have my CC through a small bank and I get sacktapped with ATM fees (Ally reimburses fees worldwide).
I know you're supposed to keep your first CC open forever. Is it possible to transfer all my banking over to Ally and just keep a CC with them?
Is the credit card only valid if you have an account with the bank in question? If not, I'm not as to why it would be an issue to transfer banks to ally.
At that point, would it make sense to get a 2nd CC (don't know if Ally issues CCs) or just stick with my original CC and use Ally for their checking account?
What would be the impact on credit score and convenience?
It is a good strategy, although make sure you read the fine print I know Wells Fargo will charge you a fee unless you direct deposit a certain amount or keep a certain balance there.. which really annoys me.
I have a couple credit cards, mainly because I have a weird obsession with reward points. I have two Amex cards and then another Visa that I use in case places don't take Amex and to pay my rent. Honestly, you really don't need more than one and another one as a backup just in case you lose the other one or any number of weird things happen. Personally, I'd dump the current bank you have and switch your checking to Ally to avoid the ATM fees and get another credit card that you pay. Keep the original if you can, but if they want to charge you maintenance fees then dump it.
I don't know much about credit scores and exactly how they work; I've had a card since I was like 17 or 18 and have had multiple different cards that I've always paid in full every month and my score is really good. I'm of the opinion that if you don't abuse credit extended to you and pay on time you don't have to worry about it at all. Besides, I like having credit available to me just in case.
If Ally is half as good as USAA I'd say it's worth switching. If you have anyone who qualifies you (self, parent, grandparent even sometimes) to join, USAA is the best financial institution out there for customer service and low cost personal banking and insurance. Very hard to beat.
I have been a member at a small local bank for pretty much my whole life, but keep a Bank of America account open for travel and to cash random checks if I'm not in the area. Although with my current set up BOA will charge me just to go in and see a teller so technically I guess I'm already online banking with them now that I think about it.
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