4 Reasons You Should Consider Opening an Account at a Credit Union

By on July 27, 2019
Credit union

While credit unions have been around for a while, they are still largely unknown to many. Some may think that they’re just another type of bank, and might not see the reason why they should opt for one. While banks and credit unions have many similarities, they also have fundamental differences that can make one choice better for you depending on your situation. Let’s take a look at a few reasons why you should consider joining a credit union.

The Customer Comes First

The biggest fundamental difference between a bank and a credit union is that credit union members are actually part owners of it. Credit unions, unlike banks, don’t have financial statements to deliver to investors and don’t need to make stockholders happy. Their goal is to make their customers/owners happy. By working from a not-for-profit optic, credit unions focus on customer service first and foremost and usually have policies that reflect that.

Lower Fees

Banks charge excessive and sometimes downright predatory fees to their customers. For instance, some will only charge you for transactions that went over the limit of your plan at the end of the month, which could result in you going over the limit without realizing it and being hit by a huge bill when you least expect it. 

Credit unions will usually have much lower fees across the board, may it be on transfers, overdrafts, or loans. Some will often have no monthly service or ATM fees, which can make a huge difference at the end of the day, especially if you make a lot of transactions.

Better Interest Rates

A credit union savings account will usually offer a much better interest rate than one at a traditional bank. Again, a credit union’s goal is not to make as much profit as possible, and they are focused mainly on covering overheads. This allows them to give back to members. 

The same also goes for loans. There will be no fees in most cases, and the rates will usually be lower – even more, if you decide to set up automatic payments. So, this is a perfect option if you were thinking of getting a car loan or mortgage any time soon.

Perfect for Less than Stellar Credit

If you have limited credit, then you could also consider working with a credit union. Credit union loan officers will usually be more open to people who have lower credit and will move heaven and earth to make sure they can find the best terms for the loan. 

They also won’t charge you exorbitant rates just because your credit score is low. If your credit situation is not as good as you’d like it to be, make sure that you apply face to face and don’t apply online. That will give you the chance to talk with the officer directly and explain your situation to them.

As you can see, there are tons of reasons you should consider either switching or at least opening an account with a credit union. You’ll be surprised at how different the experience can be, and pleased with the benefits.

 

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4 Reasons You Should Consider Opening an Account at a Credit Union