Are you looking to open a new checking or savings account? If so, you should consider visiting your local credit union. Credit unions have many benefits that can help you with your financials. Keep reading for five benefits of banking with a credit union.
1. Low Fees and Better Interest Rates
According to Moebs Services, a financial research firm, roughly 80% of credit unions provide free checking accounts, compared to just under 50% of banks. In addition, credit unions don't charge outrageous fees for services like wire transfers, money orders, or stop payments. Furthermore, if you have to take out a loan, you can rest assured that the interest rate will be lower at a credit union than at a bank. Credit unions are member-owned cooperatives, meaning they don't answer to stockholders; they only want to serve their members.
2. More Flexible Loan Terms
Credit unions are also more likely to offer flexible loan terms and work with you if you encounter financial difficulty than banks, which often have strict guidelines and may foreclose on your loan if you miss even one payment. At a credit union, member service representatives can help tailor a loan that meets your specific needs and budget, something that's hard to find at a large bank.
Additionally, suppose you do run into trouble making loan payments. In that case, credit unions will typically work with you to develop a new payment plan rather than sending your account to collections or foreclosing on the loan, as long as you communicate openly about your financial difficulties.
3. Greater Access to Financial Education
Credit unions are deeply committed to helping members improve their financial well-being and often offer free financial education resources, such as budgeting workshops, first-time homebuyer seminars, and retirement planning courses. These educational offerings provide valuable insights and information that can help you make sound financial decisions for your future.
You can receive one-on-one guidance from a financial advisor or loan officer. This personal touch allows credit unions to develop long-standing relationships with their members and get to know them more personally.
4. Improved Cybersecurity
Cybercrime is a real threat, and no institution is immune. However, credit unions have been known to be ahead of the curve regarding cybersecurity. That's because credit unions are typically more nimble than larger financial institutions and can quickly adapt to changing technology trends.
5. Personalized Customer Service
When you join a credit union, you become more than just a member—you become an owner. As an owner, you have a say in how the credit union runs and can vote for the board of directors. This unique structure allows credit unions to prioritize their members' needs.
As you can see, there are many benefits of banking with a credit union. If you're looking for a new financial institution, consider switching to a credit union. You won't be disappointed. To learn more about credit unions and how they can benefit you, contact us today.
