You’ve heard people talk about credit unions in your area. They seem to be a great place to bank, but you don’t know if you really want to go through the hassle of switching over your accounts. Here are six benefits that a credit union can offer you which will make you want to make that switch today.
Lower Borrower Rates
If you look at the borrower rates for things like loans or credit cards at a credit union and compare that to what you find at the big banks, you’ll notice a big difference. Credit unions tend to offer lower borrower rates on their loan items. This means great news for you as you can apply for loans with lower interest rates at a credit union.
Higher Savings Interest Rates
On the flip side, you want to be able to get a nice return on your investment. When you hold a savings account or a similar type of investment account at a credit union, you will typically receive higher interest rates than you will at a traditional lender. This translates to you making more money on your investments with your local credit union.
Their Lending Is Personal
When you deal with a federal credit union, you get a personal approach when it comes to lending. Credit unions will utilize a guideline when offering loan products, but they are the ultimate decider of whether or not you get approved. With a big bank, they have a cookie-cutter set of requirements. If you don’t meet all the requirements, you don’t get approved. With a credit union, they will work with you to get your loan approved.
If you’ve tried to sign up with a big bank lately, you’ve likely discovered there are many more fees than there used to be. Big banks are charging fees for withdraws, deposits, and other similar actions. With credit unions, there tend to be fewer fees. Many will provide you with free checks, free deposits, and so forth.
When it comes to banking at a credit union, their customer base tends to be much smaller than with traditional big banks. This is good news for you as you’ll get to enjoy banking at a location where the teller remembers your name. They take the time to get to know you and your banking needs. It’s hard to find that with a big bank these days.
Easier Credit Terms
Signing up for a loan with a big bank tends to require you to sign a 20-page loan agreement. Likely, you don’t have all day to read over your document and try to figure out all the legal jargon. So, you end up signing on the line and hoping you don’t commit to anything too awful. With credit unions, their credit terms tend to be simple. You’ll get a few page document and they’ll explain everything to you so you know exactly what you’re committing to.
When it comes to banking with a credit union, it has so many advantages over the traditional big banks. The above are just six of the many benefits you can enjoy. We’re sure once you start banking with a local credit union, you’ll find many more reasons to enjoy doing so.
By Anita Ginsburg
who is a freelance writer and residing in Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. If you’re looking for a reliable credit union, she recommends Centris Federal Credit Union.
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