Banks have often been the most popular choice of financial institution for people considering getting a loan. Because banks are often larger, they give an appearance of being more trustworthy, thus providing credibility to their customers. Credit unions have been rising in popularity, but they are not always the first choice. Why? Simply put, it is the lack of awareness of the many benefits credit unions offer their customers.
Today, credit unions outperform banks in terms of financial stability. This article focuses on the numerous advantages of credit unions and how being a member can help you.
1. Cheaper Fees
Fresno credit unions work on one basic principle- “people helping people”. The community of credit union members is integral to its functioning. Banks make almost one-third of their profit from the high fees they charge. Unlike banks, credit unions promote sound financial practices and have much lower fees comparatively.
2. Extra Savings
Higher interest rates and lower fees at credit unions enable its members to save better. Additionally, many credit unions also keep a predefined limit at interest rates. Banks, however, have no such fixed limit and can also charge higher interest rates.
Key Point To Remember: Since credit unions are nonprofit organizations, they frequently provide low borrowing rates and high dividends. That’s because credit unions want to help their members and not just make a profit.
3. Personal Commitment
Credit Unions frequently score better when it comes to customer satisfaction. Credit unions are dedicated to providing their members with personalized service and careful attention to their needs and financial requirements. Moreover, credit union members have access to the services of a licensed financial advisor, who can assist them in meeting their financial objectives through credit unions.
4. Best Services
Credit Unions provide a range of services to their members, including the following:
- Direct deposits through wire or online
- High-interest rates on saving accounts
- Savings and Investing
- Financial counseling assistance
- Financial education training
- A full range of insurance services
- Low Mortgages
- Money Transfers
- Low car loan interest rates
- Annual fee credit cards.
5. Support Community
Being a credit union member allows you to participate in the decision-making of this financial organization. Since credit unions are run by their clients/members themselves, it infuses a sense of community in everyone. Union members frequently have the same interests and support community development through different practices. For example, they provide low APR credit cards to clients with poor credit history, run student credit unions, provide grants and scholarships to local students, etc.
6. Electoral Rights
You have the right to vote as a credit union member on essential matters, including selecting credit union board members. Additionally, since you share ownership of the credit union, you also have a voice in its administration and, thus, the profits.
7. Provide Debit & Credit Cards
Banks are not the only organizations providing debit and credit cards. Credit unions also offer these cards, that too, at a lower price and fees.
How To Join A Credit Union?
Eligibility to join a credit union may be restricted. For example, some credit unions serving the military community allow membership only to active members, certain other government veterans or family members of those individuals.
However, many credit unions have no limitations and welcome new members from anywhere. A fee typically between $5 and $25 may be requested as part of the credit union application process. This fee or donation covers the cost of acquiring shares in the credit union’s cooperative.
Next time you consider getting a loan, whether for individual uses or business, compare the interest rates and other benefits of banks with credit unions. You’ll understand that credit unions are a superior choice, and it is much easier to obtain a loan from them.