What is a major advantage of credit unions?

Posted by Amos Fred on February 24th, 2021

Credit unions are just like banks. You can open a savings account with them as well as checking accounts. If you’re short on cash or planning a major life purchase, then you can also apply to one for a loan. If all these sound like something that you want, then being a part of a credit unit might be an excellent financial decision for you. Take a look at some for the major advantages that you can look forward to.

Customer-Centric

One of the most common complaints that people have with credit unions is that these follow a member-centric model. That means they prioritize members, which is understandably less than good news if you aren’t a member. However, if you are, then you get to enjoy that attention.

Personalized Service

Since credit unions are often local, they provide personalized service and assistance. That’s another excellent reason why many people choose a credit union over a large national bank with plenty of ATM branches. Besides, while there aren’t as many credit union ATM sites, at least you have ATMs that you can use.

Forgiving Rules

One of the reasons for the personalized service is because most of the people who become a member of a credit union have lived in the same town and have known the same people all their lives. Imagine living in a small town. That kind of knowledge of everyone else is one of the reasons why many credit unions are much more forgiving to people who apply for an account, even when they have a low credit score. That can apply in your case too, so check. That also means that a low credit score isn’t everything.

Room for Negotiations

Because credit unions are much more forgiving, they leave a lot of room for negotiations. You might want to talk about the terms and conditions of the loan. Ask if you could get a lower interest rate. It never hurts to throw out that question. You might be surprised if the firm says yes.

Help During Unemployment

In addition, most credit unions actually work together with you to come up with a payment plan in case you fail to deliver on the money after you lose your job, for instance. The leeway and willingness of the credit union to work with you is an opportunity to make things right.

Lower Fees

Many credit unions charge lower balance fees. That’s an advantage, and likely just one of the many reasons why you’ll want to switch to a credit union sooner or later. However, just a friendly reminder. Be careful of the policies. Read them carefully before you sign up for a contract. Otherwise, you might have a hard time extricating yourself from that agreement. You’re better off not joining anything you aren’t sure of yet.

Better Interest Rates

Credit unions offer higher saving rates as well as lower interest rates on loans. Those are good reasons to join one. If you want to apply for a loan, these make it a good option for you.