What are the advantages of a Credit Union versus a Bank?

Question

We are thinking about joining a Credit Union pretty soon. Simply because we are not satisfied with our Bank anymore and we want to go somewhere else, anyway. I've heard that they are supposed to be better than Banks but I really don't know what the difference is?!

Thanks a lot!!!

Answer 1

Credit Unions have better rates for everything - Mortgages, credit cards, checking accounts, savings accounts, etc.

The bad side of a credit union does not have ATMs across the country - so if you try to withdraw money at place other than the local area, you'll probably have to pay a fee.

These days though credit unions will reimburse you for a few ATM transactions per month, so even the lack of bank ATMs is really not a problem unless you use an ATM more than a few times a month.

Hope this helps!

Answer 2

Credit unions are financial institutions, like banks. They offer many of the same products and services -- savings accounts, checking accounts, ATM/debit cards, credit cards, auto loans, mortgages, home equity loans, etc. The main difference from your viewpoint as a consumer is that you can become a customer of any bank, while credit unions can only serve people who fit in their "Field of Membership." Some credit unions are sponsored by a company and only the employees can join. There are numerous credit unions that have "community charters" which allow them to serve people who live within a defined geographic region (i.e. city, county, zip codes, etc.).

The best place to find a credit union that you can join is using the following website: http://www.creditunion.coop/cu_locator/i...

Hope this helps. Good luck!

Answer 3

Banks want to squeeze out the most profit to pay the shareholders.  Credit unions are non-profit, so they operate in favour of the members.  

Bank branches have most of their decisions made elsewhere at Head Office. Credit unions make their own rules locally, as each is independent.  

Banks offering loans also sell loan insurance at high rates, squeezing out more proft from you, and look to get the rest of the loan paid from the insurance if you die.  Credit union loans are automatically covered by insurance.  If you die, the loan dies with you, and any savings are doubled for your survivors.  Try getting double your savings from the banks!!

Credit unions gauge the level you can afford to pay by what you are able to save regularly, before they allow you to have a loan.  Once the loan is granted, repayments are based on the same ability to pay, so it will not be undue hardship for you.  If you have temporary problems, talk to them, they will do all they can to make things easy for you.  The banks could learn a lesson or two along the same lines.

Answer 4

Credit unions are fine if you just want a checking/savings or Cd because they do not have to report them to the credit bureaus. However, if you get a loan or a mortgage, most do not report them to the bureaus in order to keep the cost down.

Answer 5

Smart move, now that lots of the banks are folding, credit unions usually pay you at a higher interest and lend to you at a lower interest

Answer 6

1. nonprofit...not driven bi profit

2. smaller

3. most R lokal, not megakorp with 8,000 branches