When it comes to keeping your hard-earned money safe, you know you need to use a bank. However, there are so many different options of banks that you can use such as credit unions, nationwide banks, and online banks, it can be difficult deciding which one to use. We’re going to help you discover why credit unions are by far your best bet for your banking needs.
The first reason you should really consider banking with a credit union is the fact that credit unions are owned by their members. Unlike for-profit big banks who are looking to increase their quarterly profits by charging extravagant rates, credit unions are constructed to serve the members of the union. As a member, you get voting rights and can receive dividends on the money you hold in the bank. The motive of credit unions is to have your financial health at heart instead of gaining profits.
Credit unions are more accepting of those who have less than perfect credit. Big banks won’t touch those with poor credit with a ten-foot pole because they’ve assessed only the statistical probability of getting their profits back. Credit unions consider more than your past when it comes to making a decision of whether or not to lend you money. For this reason, you will find it suggested on many financial blogs to seek a loan from a local credit union if you’ve been denied for one at the bigger banks chains.
One major reason many consider taking out loans through credit unions is that they typically offer lower rates than you’ll find at other lenders. This is because, as we stated above, big banks are for-profit and look for ways to increase their income. Credit unions are not-for-profit organizations who are more concerned with pleasing their members than turning a profit. Credit unions are great for obtaining mortgages, auto loans, and personal lines of credit.
The last reason we’re going to cover about why you should bank at a credit union instead of at a big bank or online bank is due to their high level of customer service. Credit unions are run by local members in your community. Their staff is not supplied with people from around the nation being relocated to your local branch. If you spend even a little time at the Federal Credit Union in Houston, you’ll notice the difference in customer service right away as compared to being in a big bank. The tellers are more engaging, there is no bustle to move you through a line like a numbered wallet, and they go out of their way to help you acquire the financial tools you need to be financially successful. Big banks can have polite customer representatives; however, they tend to be more focused on streamlining customers in and out of the door instead of getting to know them better.
Credit unions hold many advantages over big banks and online banks. As a credit union member, you’ll be treated as more than your credit score and be offered much better rates for your borrowing needs. We encourage you to think about switching to a local credit union as you don’t want to miss out on these advantages.