Many people don’t understand that a credit union can have more advantages over banks. It is not surprising to hear complaints charges regarding interest rates, service fees, and some other things that banks have.
But when joining a credit union, you can access plenty of benefits. Hence, assess your financial situation to see if a credit union will work for you, then discover some of its advantages below:
Higher Savings Rate
Credit unions commonly offer free accounts without minimum balance needed. Also, other fees are usually not available from credit unions, while interest rates on certificates of deposit, savings, and checking accounts exceed significantly of those provided by banks.
Moreover, interest charged for credit and loans is usually lower. Most credit unions regulate the interest rate on credit cards and loans which must not surpass a specific percentage.
Offers More Flexibility
If you have credit issues or history with your work or vast deposit, the majority of banks will refuse you to get a credit card or loan. Since banks prepare thousands of applications each month, they shape the process by establishing requirements on deposits, income, and credit scores.
If you can’t meet those requirements, you are merely declined without consideration as one customer lost means a little to a bank in the later run. Differently, since credit unions have a member-focused philosophy and are indeed smaller, they’re more eager to work with you regardless of your financial status.
Credit unions often have rules concerning who can join their organization. These rules can be in a particular geographical area, working at a definite employer, or even going to school.
Once you enter the credit union, you may stay as a member even if you stop resorting the initial member obligations. Further, they may have a provision that you have share account or savings that’s open to sustain your membership.
With regular banks, the board of directors and management wants to make a high profit as possible. Unluckily, this goal often opposes the purposes of its customers who wish to enjoy best customer service possible, lower fees, and rates. To achieve this service level, banks must cast into their earnings, which they’re not allowed to do.
However, because of the unique membership composition of a credit union, members have an identical vote in any arrangements of the credit union, and they also all work to help one another.
Mainly, member goals are not different with the management. So, the credit union offers more incentive to give low fees, rates, and excellent customer service.
Credit Union Assurance
Credit unions don’t belong to the Federal Deposit Insurance Corporation. Instead, they’re on the National Credit Union Association which acts similar to the FDIC but for credit unions.
You can have the number of funds secured as you would have if you opened an account with a bank. Meaning, if the credit union fails, you will have a guarantee of their funds. Further, you should verify that your credit union goes to the association, so you have the assurances of funds.
Some traditional banks may annoy you, while many financial organizations don’t have enough incentives to give less expensive yet better services. But with credit unions, you can enjoy their fewer fees, higher interest rates, as well as great customer service.
Also, there are lots of financial institution like Ashe Morgan that you can talk to regarding some financial talks.