Advantages of Credit Unions
Most people have heard of the big bank corporations such as Bank of America, Wells Fargo, and Chase. Among these, people complain about high service fees, interest rates or the lack of personal one on one interaction. Why not try your local credit union? There are faults in credit unions, and people complain, but they are few and far between. The complaints are not the same things they are facing with larger banks.
Credit unions are all for the member; first, there are no, so their main priority is the member first. This shift changes the business focus from generating profit to making sure the customer has the best possible experience. A credit union is also likely to forgive you if you overdraw your account or have a lower credit score. Representatives at credit unions are more likely to work with you.
Avoid Higher Fees
Big banks make most of their money in fees, maintenance fees, monthly service fees; you name it. Fees associated with credit unions are usually lower. Transfer fees are lower and there are no ATM fees charged by credit unions and lower overdraft fees. Whether you bank at a credit union or bank, though, be sure to carefully read the policies regarding any payments that you may end up paying.
Credit unions offer higher savings rate and lower interest rates on loans since their main focus is covering their operating costs. Because they are not making a profit, they can provide better interest rates to members. Their members are better served and might be able to save a significant amount on car loans, student loans, and mortgages.
Lastly, they work with your bad credit. If you have difficulty qualifying for loans, the loan officers strive to find loan terms that work out for you. If you’re interested in getting a mortgage loan but have a poor credit history, then a credit union may be your best route.
Before you commit to a credit union or a bank, read the fine print and decide what’s best for you.