Credit unions are on the rise, and for a reason. Between a bank and a credit union, which one should you use? Both typically offer the same things, and they both keep your money safe. There’s a lot of criticism around banks or credit unions and which to use, but here are five (5) reasons why you should regularly use a credit union that you know.
- Credit unions have better interest rates
- Lower overdraft fees
- Lower transfer fees
- No ATM fees
- Credit unions have similar product offers
- Savings accounts
- Checking accounts
- Certificates of deposit (CDs)
- Business bank accounts
- Auto loans
- Home loans
- Land and construction loans
- Personal loans
- Credit unions have personalized customer service
- Credit unions are more forgiving
- Credit unions are more flexible and less complicated
Because credit unions are not-for-profit entities, they focus on operational costs and thus have higher interests rates when you have a deposit account with them. Higher interest rates with your deposits mean that you can grow your account significantly as long as you maintain at least the minimum or a required amount for a certain period. At the same time, they have lower fees and lower interest rates on loans because they’re built on their members, making sure they’re a pro-consumer rather than in it to make a profit. Other advantages that can be offered by credit unions are:
Because there are lower fees compared to banks, this means that you can actually save more money. A credit union like https://www.empowerfcu.com/ is a trusted platform where you can get the best interest rates.
Both banks and credit unions basically offer the same products, but credit unions can have lower minimum requirements compared to banks. Sometimes, there isn’t even any minimum. While we may have financial steps to take when the bills are overwhelming, credit unions can also provide the financial help we need. Most credit unions can offer:
Credit unions have eligibility criteria for their members like working for a particular employer, living in a specific location, or studying in a certain university. Since the organizational structure of a credit union depends highly on its members, there’s better care for their clients’ needs. Instead of a one-size-fits-all service, credit unions could give more personalized and tailored-fit helping hands to their customers. They provide more value to personal relationships and could grant a loan to a long-time member who may not qualify for the same loan in a bank.
When someone has a weak or bad credit rating, it’s usually difficult to apply for a loan in the bank. However, credit unions can be more willing to grant a loan despite credit ratings. Staff will try to work with you for loan terms that will succeed for you. You can take a chance in applying for a home loan if you have a low credit history, but you’re interested in applying for a mortgage. If this is the case and a credit union mortgage is right for you, then it’s best that you appear in person rather than applying online, so that you can explain your situation.
Another thing that people are liking about credit unions is that it doesn’t need a lot of rules like traditional banks. There’s also less in terms of strict requirements on income, deposits, and credit scores. Since credit unions are smaller, they put the customer first and won’t merely deny you because you can’t afford a particular deposit, or because you have a poor credit rating. Because banks are more extensive, declining a customer is not going to make an impact against thousands of other applicants.
Credit unions have terms that are easy to follow, and as long as you maintain the minimum amount, which is very small if there is any, you can have free checking withdrawals or a free savings account. You won’t have to reach a specific amount purchase with your credit card to avail “free” products like traditional banks.
Overall
You may still have hesitations in using a credit union that you know, but they’re becoming more popular because the structure is shown to be winning around its consumers. We all want to be able to save money and maximize our savings in the best ways that we can. Rather than running to banks immediately for your financial needs, it’s best to do some research for credit unions where you could benefit more in the long run.
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