Some people enter into their banking relationships only seeing half the picture because they don’t even think about the advantages credit unions have when compared to banks. You’ve probably heard people complaining about the high fees banks charge, their interest rates, or even the lack of a personal touch. That said, they still might not have taken the time to look into the benefits a credit union can offer them. If this sounds familiar, you’ve come to the right place. Let’s get to it.
Bad Credit
Banks might be hesitant to work with people who have bad credit. A credit union might be more willing to do that… even when it comes to loans. A loan officer will meet with you face to face and try to find a set of loan terms that will be easy for you to meet. If you’re looking for a mortgage loan but have poor credit, a credit union might just be your best option when it comes to financing your home. They might also offer a few educational programs that are created to help people take control of their budgets so they can develop better habits financially.
Interest Rates
Credit unions tend to offer both higher savings rates and lower savings rates on their loans. Since a credit union isn’t focused solely on making profits, but more on making sure their operating costs are covered, they’re able to offer their customers better rates on both loans and savings. If you decide to get a loan through them and set up automatic payments, you may even be able to get a few more discounts. This means they serve their customers better and you may be able to save quite a bit on mortgages, student loans, and car loans.
Customers First
If you open an account at a credit union, you essentially become an owner or member of it. Credit unions don’t have stockholders, so they work to ensure their members are pleased. Credit unions are also more likely to have regulations that make them a bit more forgiving if you happen to overdraw your checking account and even if you have lower credit scores. You might also come to find that the representatives at credit unions are a bit more willing to work with you when you find yourself out of a job or in other types of sticky financial situations.
Lower Fees
One way banks make money is their fees. This includes fees such as loan origination and monthly service fees. Fees that are associated with a credit union tend to be rather lower than those you find with banks. Transfer fees are also lower and if you use their ATMs there aren’t any fees. A large moneymaker for banks tends to be overdraft fees, but these are also lower at credit unions. Lower fees mean you save more money.
Do the Homework
Before committing to either a bank or a credit union, research both of them and read any fine print you come across with regard to any product you might be interested in. If you’re looking for lower fees, a better interest rate, higher levels of personal service, more convenience, and a menu of financial products that’s more extensive, a credit union might be the obvious choice. However, if you’d like to take advantage of the benefits they both offer, you might open an account at one of each. That would also be a great way to determine which one you prefer while giving you the flexibility of both.
Credit analysis
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