They’re typically smaller and more locally focused, unlike banks which are often spread nationwide. They’re also controlled by the clients instead of investors looking to turn a profit off of a bank’s customers.
Below are a few more reasons why deciding to go with a credit union is a wiser choice than opening a bank account.
Banks are in business for one main reason. They want to make as much money as possible, off of their customers. That is why they charge you a lot of fees for things like account maintenance or minimum account balances.
Credit unions are not for profit, which is why they typically charge lower fees. They’re run by members of the credit union who are looking to attract customers through things like low interest rates and easy to obtain loans.
Easier to Get Loans And Credit Cards
Many people who have been denied a loan by a bank have been able to get approved for a loan or a credit card through a credit union. Credit unions typically have less stringent requirements.
Not only will it be easier for you to get a loan or credit card through a credit union, but you will also be able to enjoy and manage lower interest rates.
Earn More on Savings Accounts
One of the advantages of having a savings account is that your account will be able to draw interest. If you have a credit union, then your account will be able to generate even more interest.
The average credit union savings account has an interest rate of 0.13 interest. The average bank has an interest rate of 0.12 percent.
Many banks are known for poor customer service, largely because they can afford it do to their size and many customers nationwide. Most of the people who work in a credit union are friendly and want to help the customers.
They don’t look at people as just customers. They treat them as individuals who have their own unique needs.
It Is Easy to Join
Every credit union has its own set of rules that you have to follow in order to join. However, these rules don’t make it difficult to join.
In most cases, you have to be a member of a certain organization or community. You may also be able to join a credit union if you have a family member who is already a member there.
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A credit union, like FCCU – First Community Credit Union, may be a better choice for you than a bank. The motives a credit union are not necessarily profit based, since they’re owned by the members of the credit union. It is also easier for you to get a credit card or loan from a credit union.
Your savings account will grow faster because credit unions are known for having a higher interest rate. Furthermore, it is easy for you to join, and you can get friendly service.
Image Credit: why credit unions by twenty20.com
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