A financial institution will have, or already has, a relationship with you. You may go to your neighborhood bank, a major national financial conglomerate, or a credit union. Many of the same services will be accessible at all of the above; however, credit unions have a few unique features that you may find appealing. You can open a bank or savings account, receive a credit card, a vehicle loan, or a mortgage at any financial institution.
Take a look at some of the advantages of joining a credit union
A credit union is a non-profit financial institution. While banks are accountable to stockholders and must make a healthy profit, credit unions are accountable to shareholders – its members. When you join a credit union, you automatically become a shareholder. The services available are intended to supplement your membership. Any additional funds earned by a credit union are reinvested in member benefits. These advantages can be seen in a variety of ways.
- When compared to commercial banks, a credit union often pays a greater interest rate on savings accounts. These accounts are also covered by the federal government.
- You pay fewer fees at a credit union, and many things don’t have any costs at all. This is a significant distinction and a significant benefit to you.
- Credit union loan rates are often lower than bank loan rates. This can save you a lot of money, especially if you’re taking out a larger loan like a mortgage.
- Many banks are no longer willing to issue small personal loans. That is still done by a credit union. It could be exactly what you need to get you through a difficult situation or just enough to go on that family vacation.
- A credit union can also provide you with a credit card. It’s possible that the procedure will be simpler. In addition, the rates are often lower. If you’re just getting started, they may offer secured credit cards, which allow you to start building credit but with a lesser credit limit. They want to do everything they can to provide you with that service as a member.
- Credit unions usually are part of a broad ATM network that spans the country. Withdrawals are available at no additional cost at sites across the country. This can be really useful if you travel a lot. Credit union websites are well-known for their functionality. They are able to invest in them for the benefit of their members. You can not only access your accounts and pay payments, but you can also use a variety of tools.
- A credit union membership is a once-in-a-lifetime opportunity. Even if you change employment or relocate, you can continue to be a member. They also allow you to ask immediate family members to join the credit union, even if they do not meet the credit union’s other requirements.
- Credit unions are non-profit organizations, which allow them to offer lower interest rates on loans and savings accounts. You have an equal voice and can vote for the board of directors after you become a member. A credit union has a more family-like atmosphere.
In Gallop polls commissioned by American Banker Magazine, credit unions routinely outperformed banks in terms of consumer satisfaction. Check out the services we provide at Energy Credit Union. Unlike profit-driven banks and financial businesses, we deliver excess revenues to members in the form of courteous service, cheap loan interest rates, high-yield savings and investment accounts, and cheap or even FREE convenience services.