6 Reasons To Choose a Credit Union
You may have heard of Credit Unions but aren’t exactly sure what they are. Well, a Credit Union is a type of financial organization, like a bank. But, credit unions are different from banks in a few ways and usually come with better options. Here are 6 reasons why you should choose a credit union.
1. Members Over Money
Credit unions care more about their members than about making money. This is why they are not-for-profit organizations.
When you join a credit union, you become a member and a part-owner of the credit union. This means you get to vote and help make decisions. This makes sure that the services and products of the credit union are beneficial to its members.
On the other hand, shareholders own banks. When these shareholders vote, it is usually about money and not about helping members.
2. Better Interest Rates
If you need a loan, credit unions usually have better rates. This means they have lower interest rates and more options for more people. This can save you a lot of money over time.
Let’s look at an example of this. A credit union has a rate of 6% interest on a $17,000 car loan for 60 months. That means you will be paying $2,719.60 in interest over those 60 months. Now, if a bank has a rate of 8% interest on that same car for 60 months, you will pay $3,682 in interest. That is a $960 difference on a 2% difference. For other loans, like home loans, this difference can be much bigger.
So, whether you need a loan for a house, car, or credit card, a credit union is usually a more inexpensive option.
3. Higher Savings Rates
Credit unions usually give you higher interest rates on savings accounts. This means your money grows faster compared to a traditional bank. Having your money grow fast is helpful for when you are saving up for future plans, like a vacation or college.
In 2023, UCCU helped its members save $45 million because of these great loan and savings rates!
4. Fewer and Lower Fees
Credit unions have fewer fees than banks. And when they do charge fees, they’re usually lower.
Here are some of these fees:
- Overdraft fees
- Fees for not keeping a certain amount of money in your account
- Monthly account fees
- ATM fees
- Account closing fees
Nobody likes worrying about fees, and if you join a credit union, you don’t have to worry as much!
To see a great example of this, check out UCCUs Elevated Checking account. With this account, members get things like free ATM withdrawals and overdraft forgiveness.
5. Friendly Service
Credit unions are smaller than banks, which means they can give you better service. At a credit union, we know you and care about you. We take the time to help you with what you need.
Credit unions also help the community. Many credit unions support local charities and host events for their members. In 2020, UCCU had a short film competition that children and teenagers could do. They awarded the 5 winners with $1,000 and another $1,000 that each winner could donate to different places. Some donated to Primary Children’s Hospital. One donated to the Make-A-Wish Foundation.
Credit Unions care about helping people. Joining a credit union means joining a community that cares.
6. Financial Resources
Credit unions also offer free resources to help you with your money. This can include classes, online resources, and talking one-on-one with financial experts.
These resources help you make better choices with your money. You also learn things about finances that you didn’t know before.
Choose a Credit Union
Choosing a credit union is a smart choice. Credit unions have friendly service, good loan rates, high savings rates, and more. To learn more about credit unions, check out this website.If you are ready to choose today, join UCCU!