Why Credit Unions Are a Good Choice

Credit unions have continued to provide financial services to the community just like banks. While the services offered are somewhat similar, there are slight differences that remain evident. These differences are what set them apart from each other.

Credit unions are not banks. They are not-for-profit, financial institutions that are in principle owned by their members. Since they are not bound to shareholders that only want to earn profits at all costs, they take a different approach to helping people meet their personal financial goals. When a person opens an account at a credit union, that person becomes a member and gains access to benefits that traditional banks are unable to provide. Some of the benefits of membership include:

•    Access to a higher level of service – The primary focus of a bank is to take care of the shareholder by making money. A credit union’s purpose is to serve members no matter how much or little money they have in their accounts.

•    Better account terms – Banking institutions often have high minimum deposit requirements for opening checking or savings accounts. Credit unions usually have lower minimum deposit amounts and are able to offer reduced service fees. They are able to do so because they exist to serve member needs.

•    Favorable credit terms – Credit union members have access to loans and credit cards, along with investment products, much like typical banks offer. The difference, however, is credit unions are able to offer more favorable terms for members. Lower interest rates, for example, are likely on credit card accounts and loans. More flexible lending terms may also be available on loans for credit union members.

Credit union membership provides benefits that traditional banks simply cannot offer. When membership is available, this is a sound option for meeting personal financial needs.