Credit unions offer many of the same services as banks; chiefly checking, savings, and investment accounts, consumer and mortgage loans, and credit cards, as well as a variety of other services. Have you ever wondered, if banks and credit unions offer many of the same services, what are the differences between these two financial institutions? In honor of International Credit Union Day, which took place on October 20th, take a look below to see some of the stark differences between credit unions and banks:
Community
At a bank, you are more likely to be received with an impersonal greeting and long lines. Even when you are finally received by a teller or banker, you are often subject to rerouted inquiries and you have to jump through hoops in order to get answers to simple questions. With a credit union, which is owned and operated by its members, you are more than a number or a bank account. At a credit union, you will be more likely to be greeted with a friendly smile and by someone who knows you and your financial story.
Better Perks
With an emphasis on community, credit unions typically offer exceptional perks for their members. These perks can range from providing individual health insurance to offering community involvement opportunities to financial advisory courses that can help you control your budget, improve your credit, or help you recover from unexpected expenses and financials downfalls. This makes it clear that credit unions are dedicated to the development and enrichment of its members.
Better Customer Service
With credit unions, customers are always first because the focus is on members, not profit. This is why policies and plans are often more customer friendly than compared to banks. With a smaller community, customer service is bound to be more responsive and personal.
Better Rates
At a credit union, you are more likely to benefit from generally better rates. With no ATM fees, lower transfer fees, a higher rate of returns on savings, lower interest rates, and better overdraft policies, you will save more money than you would with a national bank. These same rates will be higher at a for-profit bank. With higher savings, this can be reason enough to opt for a local credit union.
Greater Flexibility
Credit unions are typically better than banks in assessing borrowers for loans. They are also more willing to work with your credit history than banks. Banks have a reputation for refusing to work with individuals who have blemishes on their credit reports. Credit unions, on the other hand, are more willing to look at that bigger picture work with you in spite of your credit score. If you are looking to refinance or are interested in a mortgage but have poor credit history, a credit union may be the best option for you.
For more information on what First Choice Credit Union has to offer to you, visit First Choice Credit Union today.
