Learn about the benefits of getting all your banking services at a credit union.
- post content
- Get Competitive Interest Rates for Loans and Savings
- It Is Easier to Qualify at a Credit Union
- Receive Excellent Customer Service and Personalized Attention
- There Is a Wide Variety of Products
- Lower Fees
- Credit Unions Are Secure
- You Can Improve Your Financial Literacy
- conclusion
- find: child bedroom
Get Competitive Interest Rates for Loans and Savings
Since credit unions follow a not-for-profit business model, they aren’t obligated to generate profits for shareholders. They also enjoy exemption from payment of taxes.
This enables credit unions to pass profits and savings on to their members through lower and fewer fees overall and better interest rates on accounts, certificates, and loans—more on this to follow.
According to the National Credit Union Administration (NCUA), the national average rates at credit unions are consistently more competitive than those for banks for common deposit and loan products.
Over time, better interest rates on savings accounts, certificates, mortgages, car loans, and so on can help credit union members save more money than bank customers.
It Is Easier to Qualify at a Credit Union
Credit unions are focused on catering to people from all walks of life. Many banks require applicants to demonstrate a strong credit history and fulfill minimum income requirements when they apply for a loan or open an account. But the eligibility requirements are more relaxed at credit unions, as they are more focused on building relationships with their members and communities.
As a result, credit unions are often more flexible and willing to work with members to repair credit issues and improve financial wellness so they can reach their goals.
So even those who receive an outright rejection at banks stand a better chance of getting approved by a credit union. In fact, some credit unions specifically focus on working with members of low-income communities who may not qualify for financial services at traditional banks.
Receive Excellent Customer Service and Personalized Attention
Delivering exceptional customer satisfaction is at the heart of a credit union’s operations. Credit unions are usually local or regional, with a strong emphasis on providing personalized services to members, who also double as owners.
This means account holders enjoy the right to vote as board members and bring in employees who can run the organization smoothly.
Moreover, since credit unions are community- and member-focused, they typically provide personalized attention to every member. You can speak to professionals who will help you determine whether a particular financial product is suited to your unique needs.
If you’re having financial problems, credit unions will work with you, help you catch up on debt payments or secure better interest rates. Banking isn’t one-size-fits-all, so credit unions listen to their members and meet their needs.
Another benefit of working with a credit union is that when you borrow a loan from a credit union, it stays with the credit union. They seldom sell down or assign loans to other agencies as banks, online lenders, and brokers might.
This means your point of contact will stay the same for the life of the loan when you get services at a credit union. You’ll always know where to make your monthly payments and who to contact if you have a question.
There Is a Wide Variety of Products
The range of products credit unions offer is on par with what banks provide. You’ll find checking and savings account options, various mortgage products, auto and recreational vehicle loans, investment accounts, certificates of deposit, business services, and more.
You can also enjoy convenience at your fingertips thanks to online banking, mobile banking, and direct deposits and withdrawals supported by credit unions. Since not all credit unions offer the same services, look for a credit union that has the financial products you need.
Lower Fees
Since credit unions are not profit-driven, they are not forced to levy various fees and charges like banks. Free checking accounts without very low minimum balance requirements (or none at all) are usually the norm at credit unions. Even those unions that levy a monthly maintenance fee for maintaining accounts charge significantly less than traditional banks.
When you apply for a loan, the loan origination fee is typically charged as a flat fee and not a percentage of the loan amount, as is the case with banks and other lenders. This allows you to borrow as much as you need without worrying that a bigger loan may attract bigger origination fees.
Credit Unions Are Secure
The NCUA insures credit unions just as the FDIC insures banks. The NCUA manages the National Credit Union Share Insurance Fund, which insures accounts opened with federal and state-chartered credit unions. For each account category, the insurance amount is to the tune of $250,000 per account. Similar to credit unions, the NCUA is also committed to working for the benefit of credit union members.
You Can Improve Your Financial Literacy
As credit unions are community-oriented, it is common for them to focus on increasing financial literacy levels. Many enlist the help of local experts to offer free financial counseling. They also host seminars and upload educational articles and videos on their websites to help members improve their money management skills and promote the importance of financial independence.
Some credit unions, such as Capital Credit Union, offer free online and in-person workshops on financial education to members as well as the general public.
other related articles of interest:
Pros And Cons Of Being A Credit Union Member Compared To A Bank
Conclusion
Opting for services at a credit union is an excellent decision if you want better interest rates, lower loan fees, and a wide range of financial products. Banking with an organization that is focused on the community and not profit-driven is a bonus. So, if you are looking for a one-stop shop to fulfill all your banking needs, don’t forget to check out your local credit union.
Image Credit: banking services at a credit union by envato.com
end of post … please share it!
end of post idea for home improvement
view and analyze home improvement ideas at our LetsRenovate center
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.
