Six Reasons Why a Credit Union is the Best Choice
As competition continues to rise, more and more consumers are seeking out their local credit union for most of their financial needs. Just last
year, membership for credit unions reached an all time high of 100 million, according to the Credit Union National Association. Here are a few good
reasons why credit unions are a popular choice for a financial institution.
Credit unions are not-for-profit organizations. They exist to serve their members, rather than to maximize corporate profits.
They have superior service. Credit unions are cooperatives, owned and operated by members. That means they are dedicated to keeping their membership happy while focusing on member values and great member service. According to the American Customer Satisfaction Index, credit unions have a satisfaction rating of 85 percent, which is nine points higher than banks.
Credit unions offer lower loan rates. As not-for-profit institutions, credit unions are able to pass on additional earnings to their members by offering lower rates on loans and credit cards. In addition to lower loan rates, credit unions typically offer higher returns on savings. Some credit unions even offer dividends on checking accounts to their members.
Fees are lower than at most banks. Because credit unions don’t have stockholders to keep happy, they have more flexibility when it comes to charging
fees and penalties. Offering lower fees helps keep costs low for their members.
They support the local community. Credit unions have a track record for participating and investing in local communities. Whether it’s sponsorships,
financial education or academic scholarships, credit unions are always trying to meet their members financial goals and help grow the community around them.
They work with you. Credit unions aren’t charities, of course, but they are known for working hard to help members receive financing. Individuals with less than perfect credit histories often find credit unions more willing to work with them to restore their good credit.
Credit unions offer superior service while fulfilling a multitude of financial needs for their members. Their mission is not to drive up earnings or maximize profit, but to provide their members with affordable financial services. That’s what makes them the best choice for a financial institution.