Credit unions are not-for-profit institutions that are owned by their members. They typically offer the exact same services as banks. However, all of the profit goes to the members as opposed to stockholders. Let’s take a moment to discuss a few reasons why you should consider banking with a credit union.
1. Lower Rates
When it comes to mortgages, credit cards, and loans, credit unions are known to offer the best rates. They’re savings and checking accounts don’t come with fees and you’re not expected to carry a large minimum balance. This can be a huge benefit if you’re low on cash.
2. They’re Forgiving
It can be difficult to apply for a credit card or loan if your credit is substandard. One of the best things about banking with a credit union is that they tend to be more forgiving in these instances. When evaluating your application, they take several factors into account such as the amount you owe to your creditors, who you owe, and if you’re currently paying your bills on time. This makes it easier to work with them.
3. They’re Established In the Community
If you’re passionate about doing good things for the area in which you live, it’s a good idea to join a credit union. Credit unions are known for working to enrich the community. Some credit unions award grants to business owners. Some give away scholarships to deserving, local students. Others sponsor fundraisers. While each credit union is different, most are dedicated to creating a strong sense of community.
4. Higher Interest Rates
One of the best things about banking with a credit union is that they usually offer higher interest rates on deposit and savings accounts than most banks do. And since these accounts are insured, they’re just as secure as the accounts that are offered by commercial banks. This means that you’ll be able to save more money with a credit union.
5. Credit Assistance
Perhaps the most valuable aspect of banking with a credit union is the credit assistance that they provide. If you have poor credit, you can always ask for help. Most credit unions employ certified credit counselors. These counselors may be able to give you a free credit report so that you can take a look at your score and figure out what steps you need to take in order to make improvements. Not only can credit counselors look at your entire profile and suggest what you can do to raise your score, but they can also offer advice that can help you to get out of debt.
If you’re currently unhappy with your bank and are considering switching to a new institution, it may be worth looking into a credit union. You may be able to appreciate the community-focused environment that this type of organization can provide. People have a lot of misconceptions when it comes to credit unions. Many assume that if they don’t belong to a specific club that they can’t join. This isn’t always the case. The key is to do your research and find which institution is right for you. Look into your community, place of business, school, or even church to find out if they offer special banking options. If you’re still not sure whether or not a credit union is the best option for you, you should consider signing up for a Space Coast free checking account. This will give you a chance to explore the inner workings of a credit union completely free of charge.