Seven ways you'll come out on top after joining a credit union

Posted by amosfred1990 on August 19th, 2019

Joining a credit union can be a sound financial move for some people. Those thinking about choosing a credit union over a bank can look forward to the following benefits.

Members are part-owners

Members own credit unions, the Money Mill explains. That’s a far cry from banks, since banks have stockholders that they need to appease. Credit unions don’t have that, which is why a lot of credit unions give their profits back to their members. For banks, the profits often go to stockholders instead.

Lower fees

Banks need to make money. That’s one of the reasons that drive surging bank rates and fees. Credit unions, on the other hand, don’t need to turn high profits. That’s because the organization only answers to its members. That’s also why it can set low processing fees, which you’ll see the first time you use a credit-union ATM. Credit unions aren’t required to earn money to appease stockholders, so that they can pass on tremendous cost-savings to their members.

Sense of community

When you join a credit union, you’ll feel like you’re joining a family or community. That’s a departure from what you feel when you sign up for an account with a big bank. Big chain banks make you feel like you’re simply another face in the crowd. However, that’s not the case when you become a part of a credit union. You can experience small-town hospital and personalized service, the kind that big banks lack.

Financial literacy

One of the best things about joining a credit union is that you’ll learn financial literacy. Credit unions provide guidance and education to help members make sound decisions about their money. If that sounds like an excellent idea to you, then it may be time to consider switching to a credit union.

Protected assets

Your money is secure with credit unions. Better security measures and systems in place have made that possible. Credit unions are also insured by the NCUA or National Credit Union Association, so your funds are protected, at least up to a certain amount. Deposits are protected up to 0,000 for every depositor, for instance.

Easier application

Loans are easier to get when you go with a credit union, The Balance says. They’re much more forgiving of a bad credit history. If you’ve lived in the area for a long time and the management knows you, then you may get your application approved much easier. With big banks, it’s more likely that your application will be rejected.

Plenty of options

You can choose from basic savings and checking accounts. You can apply for a loan or get a business account, open a credit card or apply for a home mortgage. You can even get help starting a retirement savings account or a college savings account for your kids. Credit unions can help you with each and every one of those options every step of the way.

Conclusion

These are just some of the benefits of joining a credit union. With more and more federal credit union ATM locations out there, getting access to your account and money is easier as well.

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