You can easily save money by joining a credit union. That’s one of the best reasons you’ll want to switch to a credit union instead of trusting your money to a bank. You also pay fewer fees and can get better interest rates on loans. If you’re interested, let’s dive into those reasons and explore them in greater detail.
You’re a Member
When you transfer to a credit union, you become a member. No matter how much or how little money you have in your account, you will be entitled to a vote when new board members are elected. That means you can take a more active role in the council. You can influence the direction of the organization and can make your voice heard. For many, that is a better arrangement than the one offered by banks, where customers have little to no say about such things.
More ATMs
The lack of ATM access may be a source of concern. But there are 5,200 credit unions in the U.S., and the count is still rising. You can expect more members to enjoy easy access to a credit union ATM in the future. You won’t need to worry about not finding an ATM when you need one.
Non-Profit Credit Unions
Credit unions are not-for-profit organizations, unlike most businesses. Their goal is not to make money but to provide members with financial products and services. That’s also why they prioritize members by being more lenient with loan restrictions and requirements. Even if your credit score isn’t as high, you have a better chance of getting a lower interest rate or being approved for a loan. You won’t get that much of a chance when you’re dealing with traditional banks.
Lower Fees
The not-for-profit nature of credit unions is also one of the reasons why they aren’t as obsessed with charging members fees for the financial services they provide. The fees are much lower, which benefits credit union members. Banks, on the other hand, are notorious for rising fees and for charging nearly everything at a premium. Banks have stockholders, which means they are organizations that must make money. Hence, the higher fees. If you want cost savings when you use financial products, consider switching to a credit union.
Personal Service
When you deal with a bank, you’re only one of the many account holders. You may not even receive a warm or ideal service. In contrast, credit unions provide a more personal approach. They can discuss options with you. They can provide answers to your questions. If you’re looking for a financial service provider, but don’t want the stringent requirements and rules of banks, credit unions are the best solution.
Community Building
Credit unions are also locally owned and operated, so when you join one, you become a part of that community. And because credit unions value their members, you can enrich that community through your participation. Attend council meetings and use your vote wisely. You can also run for a seat on the board if you want to create positive changes in the community.
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