The biggest reason why people don’t switch banks is fear. Fear that they’ll overlook something important while switching bank accounts, and that accounts will end up in collections, paychecks will sit in limbo and their credit score will suffer.
Switching banks doesn’t have to be scary. If you can do some preliminary work before switching banks or credit unions, the process will go a lot smoother.
The first step you should take when switching financial institutions is to make a list of all the bills you pay using your financial institution’s electronic bill payment service, including how much you’re paying each month on average and the date each bill’s payment is due. This will ensure you don’t overlook any of your bills when you set up electronic bill payment services at your new financial institution.
You’ll also want to record all the direct deposits you have being made to your old account. Even if you only have one direct deposit, it’s better to record it now then realize you forgot to transfer it over after you closed your old account.
If you need help with this step, First Alliance Credit Union has a free downloadable switch kit you can use. It includes a section that will help you record your automatic payments and your direct deposits.
When you close down your old account, you’ll also lose the ability to access that account’s statements unless you download them. You’ll want to store at least six months’ worth of statements from your old accounts, in case you need to dispute charges or provide proof of purchase. These statements can also help you document your assets for a loan or insurance.
While switching financial institutions can seem intimidating, taking some steps to prepare will make the whole process easier and less stressful.
If you need help switching financial institutions, including becoming a member of First Alliance Credit Union, you can find a lot of helpful information in our resource center. Our guide to switching financial institutions will walk you through every stage of transferring accounts, and our free downloadable switch kit has fillable forms that will make the process much easier.