What is a Money Market Account (MMA)?

A money market account (MMA) is a type of savings account that functions as a checking account, allowing you to earn interest on your balance while still having easy access to your funds. Unlike a certificate of deposit account, withdrawing money from an MMA won’t incur withdrawal fees. Additionally, the interest rate for an MMA is higher than that of a regular savings account, and interest is compounded daily and paid monthly. 

Explore Argent Credit Union’s money market account, the Money Management Account (MMA). Our MMA offers a competitive interest rate that grows as your balance grows with no monthly fees. 

Pros and Cons of Money Market Accounts

Money market accounts (MMAs) are a popular financial tool that combines the features of both savings and checking accounts. With a range of benefits, including higher interest rates and easy access to money, MMAs can be an attractive option for many savers. However, it’s essential to weigh the pros and cons before opening an account, as they come with specific requirements and limitations that may affect your financial goals.

Benefits of a Money Market Account

1. Up to $250,000 Is Insured by the NCUA /FDIC

NCUA insurance protects money market accounts in credit unions up to $250,000 per depositor, per institution, offering peace of mind for your savings.  Similar to the NCUA, the FDIC offers similar insurance for banks.  

2. Competitive APYs

Higher yields than regular savings accounts typically offer better interest rates due to a higher minimum balance requirement.

3. Check-Writing Privileges 

Some MMA’s offer check-writing abilities, which is typically not a feature of most traditional savings accounts. 

4. Stable Returns

Unlike riskier investments (like stocks or bonds), MMAs provide stable, predictable interest without the risk of losing the principal, making them ideal for conservative savers.

Money Market Account Disadvantages

While Money Market Accounts (MMAs) offer several benefits, there are some potential drawbacks to consider:

1. Higher Minimum Balance Requirements

MMAs may require a higher minimum balance than regular savings accounts. Falling below the required balance might reduce interest rates or additional fees.

2. Limited Transactions

While MMAs provide liquidity, they typically have transaction limits, often restricting the number of monthly checks, transfers, or withdrawals you can make. This could make it less convenient if you need frequent access to your money..

3. Fees

Some Money Market Accounts may incur monthly maintenance fees if you don’t maintain a certain balance. These fees can erode the interest earned, especially for accounts with smaller balances.

4. Not Ideal for Frequent Transactions

MMAs may not be the best fit for members who need regular access to their funds for payments or withdrawals due to their limited transaction capabilities.

5. Fluctuating Interest Rates

The interest rates on MMAs are often variable, meaning they can fluctuate with market conditions. In a low-interest-rate environment, the returns on your MMA may be less attractive.

Compare MMA’s With Other Savings Options

When choosing a money market account, prioritize one with a high interest rate and no monthly fees. Some institutions require balances of $10,000 or more to qualify for their best rates or to waive fees, while others have no minimum balance requirement. Select an account with a minimum opening balance that fits your budget.

When to Choose a Money Market Account

A money market account is ideal for individuals who: 

1. Want Higher Interest: Those seeking a higher interest rate than traditional savings accounts offer while keeping their funds accessible.
2. Needs Access to Their Money: If you want the flexibility to write checks or make debit transactions while maintaining the ability to earn interest, a money market account could be a good fit. It’s perfect for those who need limited access to their money but don’t want it tied up in long-term investments.
3. Have Larger Balances: People who can maintain a higher balance—typically $5,000 or more—are often the best candidates since many money market accounts have higher minimum balance requirements to avoid fees or qualify for the best rates.
4. Looking for Low-Risk Savings: MMAs are great for people looking to expand their savings while protecting their money from market risks, as the FDIC or NCUA typically insures money market accounts.
5. You Have Short-Term Savings Goals: A money market account can help you save more quickly and is perfect if you are saving for a new car, a wedding, or other significant expenses. 
6. You’re Building an Emergency Fund: Accounts with high liquidity are ideal for unexpected expenses, such as urgent repairs or hospital visits. 
7. Want Flexibility for Short-Term Savings: Those saving for a short- or medium-term goal (e.g., an emergency fund, vacation, or major purchase) may appreciate the balance of earning interest while still having relatively easy access to funds. An MMA is not ideal for saving for retirement. 

Open a Money Management Account with Argent

Interested in opening an MMA? Learn more about Argent Credit Union’s MMA, the Money Management Account. Contact us today to learn more!

Become a Member

Auto Financing Guide

Vehicles are among the most expensive things that people buy in addition to their homes and paying for college educations. Because of this, financing the purchase is often necessary. If you obtain financing yourself instead of going with dealer-arranged financing, you may be able to increase your negotiating power with the dealer and save money on interest.

How Your Credit Score Affects Auto Financing

When evaluating you for an auto loan, your lender will consider several factors including your current debts, income and employment history, and your down payment. One of the most important factors that will be considered is your credit score.

Your credit score is an important indicator of how you will manage an auto loan. It’s based on how well you have managed past debts. A good score indicates you will likely make your monthly payments on time and you won’t default on the loan.

Credit scores fall within the range of 300-850. The score you will need to qualify for a loan will vary depending on the lender, but some will approve you for a loan with a score of at least 600, which is considered a fair score.

Having a good credit score isn’t just important for getting approved for an auto loan. It could also affect the interest rate you get. Because your credit score represents borrowing risk, auto loans for borrowers with higher credit scores usually have lower interest rates than borrowers with lower scores.

How Auto Loan Terms Affect the Interest Rate

The loan term is the length of time required to repay a loan. Loan terms for automobiles are usually expressed in months. A 60-month term, therefore, means you will repay a loan in five years.

The loan term is another factor that may affect the interest rate of your loan. Shorter loans usually have lower interest rates than longer loans. This is because they have a lower risk of loan default. The shorter the loan, the faster the loan will be repaid. Borrowers are rewarded for the decreased risk with lower interest rates.

Why You Should Consider Auto Loan Pre-Approval

Before you start shopping for a car or truck, there are several important benefits to obtaining an auto loan pre-approval to consider. Auto loan pre-approval means your lender has done a preliminary review of your finances and has agreed to loan you up to a certain amount. Pre-approval may help you narrow your search and negotiate a better deal.

It Helps You Set a Realistic Budget

Once you are pre-approved for an auto loan, you will know exactly how much you can borrow. This can be helpful when shopping because it allows you to focus on the vehicles you know you can afford instead of wasting time looking at vehicles that are outside of your budget.

It Gives You More Negotiating Power

If you have been pre-approved for an auto loan, the dealer will consider you to be a cash buyer. This will increase your negotiating power because it will allow you to negotiate the vehicle price instead of the monthly payment amount.

It Protects You From Financing Markups

When dealers arrange financing for you, they may charge a fee for the service. They may also add an interest premium to the interest the lender is charging you. Pre-approval allows you to bypass financing markups.

It May Help You Avoid Dealer Upsells

Before a deal on a vehicle is finalized, the dealer may try to sell you extra services or products. A few dealer upsells you may encounter include:

• Gap insurance
• Paint protection
• Fabric protection
• Anti-theft equipment
• Prepaid maintenance plans

If you are pre-approved for an auto loan, it may give you an easy way to say no to expensive dealer upsells if they are outside of your budget.

How to Get Pre-Approved for an Auto Loan

Getting pre-approved for an auto loan is usually a quick process. Many lenders now let you do it by phone, online, or in person.

1. Check Your Credit

It’s a good idea to check your credit score before applying for a loan pre-approval. If your score is lower than you prefer, there are some things you may be able to do to increase it. It’s important to keep in mind, however, that it could take several months for your score to improve.

2. Gather Your Documents

If you don’t have all of the documents you will need when applying for auto loan pre-approval, it could cause delays. You may need to provide documents or information pertaining to:

• Current housing
• Social Security number
• Loan amount and requested term
• Income and employment information
• Current vehicle (if you are using it as a trade-in)

3. Compare Lenders

Different lenders will offer auto loans with different interest rates and terms. Be sure to compare lenders to see which one will give you the best deal.

Credit unions typically offer auto loans with lower interest rates than banks. This is because they are nonprofit organizations. Since they don’t have to earn a profit for investors, they can pass on the savings to their members with low rates and fees.

4. Apply for Loan Pre-Approval

If you are pre-approved, your lender will give you a pre-approval letter that you can show dealers so they will treat you as a cash buyer. The letter verifies that you are approved to borrow up to a certain amount.

5. Go Shopping

You can now search for vehicles that are within your budget. When you find one you want to buy, you can give the vehicle information to your lender to complete the loan application and obtain financing for it.

Auto Loans With Argent Credit Union

If you are in the market for a new vehicle, Argent Credit Union offers auto loans for cars, trucks, and motorcycles with competitive interest rates. We finance both new and used vehicles manufactured from 2010 to the present.

Terms of up to 84 months are available and you don’t have to make any payments for the first 90 days. Borrowers with excellent credit may qualify for up to 120% financing.

Click on the following link to learn more about our auto loans.

Auto Loans

Home Equity Loans vs. Home Equity Line of Credit

Home equity loans and Home Equity Line of Credit (HELOC) are different ways to do the same thing—use the equity you have built up in your home to help pay for things you need today. Let’s break down home equity loans vs. HELOCs to see what might work best for you.

The differences explained

It’s no secret that home prices have gone up.  As a homeowner, you may have equity built up in your home. If so, then both Home Equity Loans and HELOCs are viable options to pay for large purchases, such as home improvement, college tuition, or that vacation you’ve been dreaming of. Let’s take a look at how each option works and which loan type might best meet your financing needs.

What Is a Home Equity Loan?

Equity is the amount your property is currently worth, less the outstanding amount you still owe on your mortgage on the property. It’s the portion of your home’s value that belongs to you. If you have been paying down your home for a while and its value has appreciated, you may hold a significant amount of equity in your home.

A home equity loan allows you to tap this equity directly. Also known as a second mortgage, a home equity loan allows you to borrow an amount equal to a portion of this equity, using your home as collateral for the loan.

With a home equity loan:

• You receive the amount you borrow as a lump sum that you can use as you see fit
• You repay at a fixed rate for the term of the loan
• You continue to make repayments on the balance of your original mortgage

Home equity loans allow you to make a fixed payment for the full term of the loan, which can extend up to 30 years.

The main risks of a home equity loan are:

• If your home’s value falls, you might owe more than your equity is worth
• If you are unable to make payments on either loan, you are at risk of losing your home

What Is a HELOC?

A HELOC also allows you to borrow against the equity you have built up in your home, but the money is offered to you as a revolving line of credit. This means it works more like a credit card, where you can borrow smaller amounts of cash as you need up to the limit of the portion of your equity you were able to borrow against.

With a HELOC:

• You borrow small amounts up to a set limit for an agreed “draw” period
• You make minimum payments and pay interest only on what you have borrowed
• After the “draw” period ends you’re required to start paying the full balance of the loan

HELOCs allow you to borrow money as and when you need it and to repay only a minimal amount of what you have borrowed, often only the interest charged. Once the draw period ends you’ll need to repay the balance all at once, or over a period of up to 30 years or more.

While the variable rate might be fixed for the draw period, if rates rise, it may jump sharply at the end of the draw period. You may face “balloon” payments as well, to make sure you’re able to repay what you owe within the agreed term. Or you might incur prepayment penalties if you want to pay off the line of credit before the end of the term.

The main risks of a HELOC include:

• Payment shock when higher rates are applied at the end of the draw period
• Owing more than your equity is worth if your home’s value falls
• Losing your home if you’re unable to pay off either your line of credit or your mortgage

Why Borrow?

The big advantage of both home loans and HELOCs is that, because they are secured by your home, they offer very competitive rates compared with other forms of lending. This makes them a good source of money for those big projects you would like to get done.  That said, the type of borrowing you choose depends on your specific situation.

Choose a Home Equity Loan If…

• You’re looking for a large lump sum for a one-time expense such as a wedding or a major home renovation project
• You’re happy to pay down a loan for a long period at a steady rate

Choose a HELOC If…

• You need easy access to money to pay for smaller expenses or emergencies
• You are able to make regular repayments to keep your balance in check

HELOCs offer low fees and interest rates and can be a good way to pay for necessary expenses that would overwhelm your credit cards, such as unforeseen medical bills or starting a small business. However, don’t be tempted by interest-only payments for the first few years. You must be able to keep your balance in check to avoid far higher costs down the line.

Click here to see how home equity loan and HELOC borrowing costs stack up. 

Smart Home Equity Options With Argent Credit Union

At Argent Credit Union we offer our members flexible options for tapping into their home’s equity to pay for the things your family needs today.

Our home equity loans feature:

• Fixed-rate loans starting at $10,000
• Terms between 5 and 10 years
• Borrowing up to 90% of your home’s equity

Our HELOCs feature:

• Flexible loans starting at $10,000
• Borrowing up to 90% of your home’s equity
• Take out only what you need
• No closing costs*  

Whatever your borrowing needs, Argent Credit Union is here to help you make the best decision based on your financial situation.

Click below to learn more about our home equity financing options.

Home Equity Loans and HELOCs

*No closing costs. If you close your line of credit within thirty-six (36) months, you will be required to reimburse the Credit Union for closing costs paid on your behalf. These fees generally total between $400 and $1,000. If you ask, we will provide an itemization. Limited time offer.

NMLS #421982

Why Join a Credit Union? Here Are 10 Reasons

Why join a credit union? Local, member-owned financial institutions have deep roots in many American communities and provide a flexible, more accessible alternative to large commercial banks. We take a look at what credit unions are, how they work, and the key reasons many consumers still prefer them to larger for-profit banks.

What Is a Credit Union?

Credit unions are cooperative financial organizations owned jointly by their members. Everyone with an account has a share in the ownership of the credit union. As a member, you are both an owner and an investor in the credit union’s success. 

Credit unions typically have roots deep in local communities and were often started when employees at a company, government office, or school pooled their financial resources in order to access affordable banking services and credit. Since then, many credit unions have banded together or extended their reach, but the feel of community remains core to their identity.

How Do Banks and Credit Unions Differ?

Credit unions are not-for-profit organizations, meaning that they are run on behalf of their members, not shareholders, and any excess funds are reinvested in the credit union. Services are provided more or less at costs, rather than seeking to maximize returns from every transaction.

Banks, on the other hand, are “for-profit” organizations that sell services to their customers to benefit their owners, or shareholders. Shareholders also control the board that decides how the bank is run. While most started as locally owned companies, almost all banks are now part of big regional or national corporations with few connections to any individual communities.

Credit unions are also regulated differently than banks. They need to keep more of their reserves on hand, rather than in “at risk” investments and they also need to maintain a stake in the loans they grant, rather than being able to repackage and resell loans, as banks do. This means that more credit unions’ assets remain in the hands of their members.

Why Are Credit Unions Important?

Credit unions provide crucial access to safe, well-regulated financial services in many communities, especially for people just starting out on their financial journey or those in service professions including teachers and local government staffers, as well as healthcare and utility workers. 

True to their roots, credit unions also provide services in places commercial banks do not.

Today, almost 5,000 credit unions across the U.S. together manage $2.17 trillion in member assets. According to the National Credit Union Administration (NCUA), the sector now extends loans on family residential properties worth almost $660 billion and $486 billion worth of auto loans on both new and used cars, accounting for almost 1 in 3 auto loans extended in the U.S.

Why Should You Join a Credit Union?

Let’s take a look at what member ownership, not-for-profit status, and local connections mean in practice. Here are 10 good reasons why you should join a credit union.

1. Low Fees

With no incentive to maximize profits at every stage of the banking process, credit unions offer many services at cost or are able to eliminate many fees commonly charged by banks. Expect to pay low or no monthly and annual service charges as well as fewer checking, cash advance, and overdraft fees. Loan application and processing fees are also less common.

2. Lower Minimum Balances

Similarly, with less need to support investments on the open markets, credit unions often require members to keep less money in their deposit accounts. That means more checking, savings, and money market accounts with no or very low minimum balance requirements.

3. Higher Interest Yields 

Unlike banks, credit unions do not need to maximize the difference in rates between the interest they charge on commercial loans and the money they borrow from you to make profits for themselves. That means money in your savings, money market, and share certificate accounts will earn a higher annual percentage yield (APY).

4. Lower Interest Rates

It also means credit unions do not need to charge as much on the money they lend to members in the form of annual percentage rates (APRs) on personal, auto, and home loans, credit cards, lines of credit, home equity financing, and even business loans. Members win on both ends!

5. More Flexible Terms

Without the need to maximize profits, credit unions are also able to be more flexible on the terms they offer when making loans. Depending on your circumstances, credit unions may be willing to lend money for longer or allow you to borrow against more of the value of your home or car.

6. Fully Insured Deposits

All this flexibility comes with the same built-in safety that deposits at commercial banks enjoy because the federally-backed NCUA insures individual deposits in every credit union up to $250,000. 

7. Great Local Service

Credit unions continue to serve the communities that created them. While they might have fewer locations than big banks, they are more likely to maintain branches in places where commercial banks no longer offer in-person service. Their smaller size also means you are more likely to be able to talk directly to a senior manager or the loan officer administering your loan.

8. Long-Term Relationships

Credit unions know they are more likely to succeed when their members thrive. The staff at your local credit union has an interest in getting to know you better and understanding your financial goals. At a credit union, you’re more likely to be recognized when you walk in the door, rather than having to start from scratch at every visit.

9. Financial Resources and Tools

That natural interest in members’ well-being means credit unions often also provide a host of financial resources and tools for their members from helpful blog posts and online mortgage calculators to webinars on home purchasing or investments. Many credit unions are also advocates for financial literacy, often supporting classes and programs in their communities.

10. Voting Rights

All this talk about member ownership means something. Being a member and owner means you get to vote on who sits on the volunteer board that oversees the operations of the credit union. You can even run for election to the board or various committees yourself!

Argent Credit Union: We’re Here for You, Richmond 

Argent Credit Union is a full-service not-for-profit financial cooperative owned and operated by its members. At Argent Credit Union, we return earnings to our members in the form of lower loan rates, higher savings rates, and fewer to no fees.

Created in 1956 to serve DuPont employees in Chesterfield, VA, the Argent Credit Union now serves more than 26,500 members throughout the Richmond metro area. Membership is open to anyone who lives, works, attends school, worships, or volunteers in Chesterfield, Henrico, or Hanover counties or the City of Richmond.

If you are looking for a Richmond credit union, please come talk with us. We’d love to get to know how we can serve your financial needs. 

Belonging at Argent

How to Get Pre-Approved for a Mortgage

So you’re ready to start house hunting and you’re thinking about the home loan you’ll need. But which should you do first: find your dream home or apply for a mortgage? 

Neither—the first thing you should do is figure out how to get your home loan pre-approved! Pre-approval means you’ll have a clear idea of your budget and realtors and sellers will take you seriously as a buyer. Read on to find out how to get pre-approved for a mortgage. 

Why You Need to Get Pre-Approved for Your Mortgage

Mortgage pre-approval is essential in a competitive housing market because it means you have financing ready to go, therefore sellers are more likely to pick you. Once your mortgage is pre-approved, you’re in a strong position to approach a realtor and start shopping for a home! 

Plus, the pre-approval process is a chance to learn key information that can help you on your home buying journey:

• Find out if you can qualify right away for a mortgage or if you need to wait until your finances are in better shape.
• Determine what annual percentage rate (APR) you’re likely to get based on your credit score, debt-to-income (DTI) ratio, and income.
• If needed, you can take steps to improve your credit before you officially apply for your mortgage.
• Find out the home price range you should consider to get an affordable monthly payment.
• Determine what type of mortgage best suits your situation and goals. For example, a fixed-rate vs. adjustable-rate mortgage (ARM) or a jumbo loan.

How to Get Pre-Approved for a Mortgage in Simple Steps

Here’s what to do when you’re ready to seek mortgage pre-approval:

• Find out your credit score and, if needed, take steps to improve it.
• Gather up all your personal and financial documents.
• Choose a lender you trust and can build a relationship with. 
• Hit the apply button and wait for a response from a mortgage originator!
• If pre-approved, you can discuss your loan type, amount, term, and likely rate.

Once you find a home and your offer is accepted, you can submit your final mortgage application. Your lender will take some time to check your credentials in the underwriting process. If all goes well, you’ll sign the loan contract and get the funds to buy your home.

FAQs About Mortgage Pre-Approval

You probably still have a few questions about how to get pre-approved for a mortgage, so here are the most common queries we get from people just like you.

How Is Getting Pre-Approved Different From Pre-Qualifying?

Pre-qualifying involves just a soft credit pull to take a quick look at your financial background, and you get ballpark figures only. Pre-approval uses a hard credit pull to assess in greater detail whether you can get a mortgage, the amount, and your likely rate.

Does Getting Pre-Approved for a Mortgage Hurt My Credit?

Your credit will drop a few points when a lender runs a hard credit check. The good news is, If you get pre-approved from multiple lenders within about 45 days, it counts as a single hard credit pull so your credit score will dip only once. 

Plus, your credit will recover once you start making timely payments on your home loan. 

How Long Does Mortgage Pre-Approval Take?

Depending on your lender, you may get a pre-approval response within one to three business days. Some lenders may take up to 10 days. 

Note that pre-approval is different from your final mortgage application, which begins the closing process on your home purchase. The closing process may take 30 to 60 days.

How Far Ahead of House Shopping Should You Get Pre-Approved? 

A mortgage pre-approval offer may be good for about 60 to 90 days so you want to aim to find your home within that window. Pre-approval is valid for a limited time because your finances and interest rates may change over a longer period. 

If your situation or the markets change, you may qualify for different loan amounts and rates.

What Documents Do You Need for Mortgage Pre-Approval?

Before you apply to get pre-approved, you should spend some time gathering these documents:

• State-issued ID and proof of address
• Bank statements 
• Tax returns from the previous two years
• W-2s, 1099s, and other proof of income from the previous two years
• Information about any other assets you have

Should You Shop Around Different Lenders?

Yes, it’s a good idea to shop around different lenders to find the most competitive rates, flexible terms, and friendly local service. Credit unions frequently offer affordable home loans because they are not-for-profit organizations that pass revenue back to members through lower rates.

Next Steps: Choosing the Right Mortgage for Your Needs

Now that you’ve learned how to get pre-approved for a mortgage, you’ll be better equipped when it comes to choosing a home loan. Keep in mind that a 30-year fixed-rate mortgage is the most popular. This is because it offers affordable payments that stay the same every month over a generous term. That said, it’s not the only kind of mortgage. 

If you have a higher income and a large down payment, you could choose a shorter term to save on interest. Or if you want an extra-low payment at the start of your loan term, an adjustable-rate mortgage could be right for you. Click below for details!

Home Loans