Benefits of Going To A Credit Union
Some people don’t realize how beneficial it can be to enter into a financial relationship with credit unions. Knowing that some of your friends are complaining about the banks’ hefty interest rates and service fees, it may be time to consider switching to financial organizations like credit unions.
If you’re thinking about applying for a loan, here are a few essential benefits of going to a credit union.
Credit Union: A Quick Overview
When we say credit union, it refers to a non-profit cooperative financial institution owned by the members. In short, profits will be given back to the members through higher savings rates and lower fees. Just like banks, they provide the same financial services, but they appear to be friendlier and warmer.
Moreover, if you want to become a credit union member, you need to comply with some membership requirements based on your residence, employment, or through the associations you’re affiliated with. Once you become part of the organization, you’ll be allowed to open accounts, apply for credit cards, and get loans.
So, if you’re looking for a full-service credit union that offers a variety of financial products, click here to gather the information you need to get started.
Credit Unions: Why Should You Choose Them?
Since credit unions are known for being not-for-profit financial institutions, they can potentially pay attention to offering better financial services for their members. If you’re a member yourself, you can benefit from going to a credit union in a variety of ways. Here are some of them:
- Lower Fees
Typically, banks make money through the fees their members pay them. This may include monthly service fees and other related fees. However, with a credit union, the costs tend to be lower than those charged by banks. For example, the transfer fees are more economical, and frequently, they don’t assess ATM fees for deposit or withdrawal transactions. By paying lower fees, it means you can avoid hefty banking costs altogether, which allows you to save more money in the long run.
- Better Interest Rates
In addition to lower fees, going to a credit union means you can take advantage of the institution’s better interest rates on loans. Instead of making profit, credit unions, for instance, pay more attention to covering their operating costs to serve their members properly. In turn, they can be able to provide lower rates to their member-owners. So, if you become part of the institution, you’ll be better served and may be able to obtain more savings from car loans, mortgages, and many more.
- Accessible And Friendly Customer Service
Large banks may seem formal, cold, and sometimes challenging to reach. It can be because they’re so enormous that they can’t accommodate all their clients or don’t care about doing business with you. Credit unions, on the other hand, provide a more personalized approach to customer service. They often go beyond the formalities to help their members with their financial needs. When they reach out to their members, they can be more accessible in all aspects of the process and offer a friendlier atmosphere.
- Best Route To Working Out A Bad Credit
Unlike big banks, a credit union can help you qualify for a loan even if you have poor credit. The loan officers of the institution will be more than willing to discuss with you some ways on how to get loan terms that can work best for your situation. Thus, if you’re planning to get a loan but you have a bad credit history, working with a credit union can be the best way to help you out. Also, a credit union can provide educational and counseling programs that can help you learn how to create a solid financial foundation.
- Voting Rights
As mentioned, being a member of a credit union, you’ll have voting rights over the institution’s decisions, including the selection and appointment of the board members. The rationale behind this is that when you become a member, it also means you’re a co-owner of the credit union. Therefore, you can take part in all the decision-making processes of the organization
- Access To Variety Of Service Offerings
Although a credit union may not be as big as banks are, it doesn’t necessarily mean it also offers limited service. Aside from educational programs, credit unions also cover a lot of financial needs, including consumer loans, ATMs, credit cards, electronic banking, home equity loans, business loans, and mortgage loans. Whether you’re an employee, retiree, or household member, going to a credit union can give you access to a wide range of financial services.
These are just a few of the benefits of going to a credit union. If you’re tired of dealing with unresponsive customer service and long lines, then it can be the right place for your financial needs. However, before you leave your bank and commit to a credit union, make sure you do your homework. Check whether you have this kind of financial institution in your area. Also, take note that not all credit unions offer the same rates and services. Shop around and compare fees so you can choose the best credit union that suits you.