The Top 3 Benefits Of Using A Credit Union

There are plenty of published articles claiming banks are better than credit unions, however, there are plenty of advantages offered by credit unions.

The benefits offered by credit unions over banks are often overlooked, which is why we’ve laid out the top 3 perks of joining your local credit union:

The Majority Of Credit Unions Are Insured By the NCUA

What is the NCUA you ask? It’s short for the National Credit Union Administration, ensuring that credit union accounts are backed in full faith by the U.S. Government. To top it off, there has yet to be a single cent lost through a member of a federally insured credit union.

If you were wondering, First Choice Credit Union is NCUA insured.

Great Rates

All around, credit unions offer excellent rates, especially when compared to their big bank counterparts. Whether it’s credit card APR, Certificate of Deposit APY, Membership fees, and other miscellaneous items - banks are typically no match for the interest rates offered by most credit unions.

For The Members, By The Members

At a credit union, you’re considered a member rather than a customer at a bank. While labeling things may not seem important, the weight they carry is different. Credit unions are nonprofit entities that have the goal of passing their profits to members, while banks are for-profit entities, wanting to make money from their customers.


Other fantastic benefits such as great customer services and being a larger part of your community. We hope that these outlined advantages help you consider switching to your local credit union – that is, if you’re not already a member!

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The Many Advantages of Being a Credit Union Member

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.