Is it time to open a bank account but you are not sure what type of financial institution to choose? Learn the top advantages of joining a credit union.
In terms of how your manage your money, where you bank is an important decision as every dollar you earn reflects your time and your effort. No one wants to waste their hard earned money on banking fees or high loan rates; they want to see their money protected and growing. You may have heard people complaining about a bank’s high service fees, interest rates, or lack of a personal touch, for example, but never taken the time to explore the alternatives a credit union offers.
Credit unions understand these needs better than bigger banks. They cater to their members with lower fees, better rates, and better customer service. Credit unions also embrace online banking in full force while remaining secure.
There are many reasons to consider ditching the big banks and choosing a credit union membership instead. Before you pick your next place to park your money, consider the many benefits of choosing a credit union.
Credit Union Advantages
- Credit Unions Are Member Oriented & Members Come First
- Credit Unions Typically Have Lower Fees
- Credit Unions Offer Competitive Rates
- Banking at Your Fingertips: Credit Unions have a large Network of Shared Branching Systems
- Credit Unions Don’t Have Customers, They Have Members
When you open an account with a credit union, you are not just an account number, you become a member or owner of that credit union. You are joining a not-for-profit financial cooperative where all of the members are owners. A credit union doesn’t have stockholders, so it works to please its members. This shift from a for-profit to a not for-profit model changes the business focus from generating the most profits possible for stockholders to creating the very best customer service, rates, and support experience.
Also, because you are joining a not-for-profit financial cooperative where all of the members are owners, credit union policies tend to be more customer-centric and friendly.
Members First. Credit Unions Are Member-Oriented
Credit unions are member-oriented and their members come first. Credit unions take pride in serving their members’ best interests. Because their members come first, credit unions focus on empowering members through the very best loan rates along with friendly, personalized customer service.
Non-profit vs. not-for-profit: Even some experts get this wrong. Credit unions are not-for-profits, not non-profits. Credit unions reinvest their profits in their members and the services they provide.
Working With Lower Credit Ratings
A credit union may be more willing to work with you than a bank might be if you have a lower credit rating or have difficulty qualifying for a loan. The loan officers will meet with you one-on-one and strive to find loan terms that will work for you. If you’re interested in getting a mortgage loan but have a poor credit history, then a credit union may be your best route to financing your new house.
Important: If you have a less than ideal credit rating, be sure to apply for any loans in person. Some credit unions provide online loan applications, but if you apply in person you have the opportunity to satisfactorily explain your circumstances.
Banking With Credit Unions Typically Means Lower Fees
One of the places banks make money is in their fees, including monthly service fees and loan origination fees. The fees associated with credit unions tend to be lower than those assessed by banks. Banking fees and investment fees can be a nuisance. Since banks are in the business of making money from their customers, you may find fees on your account for a variety of things like low balances in your checking account. Credit unions may charge you fees on certain transactions like overdrafts but generally, they limit their fees.
If you want to avoid high fees, try looking into credit unions because credit unions are not-for-profit organizations. Fees are typically lower and there are fewer of them. Compare rates and fees, especially on loans such as mortgages or car loans.
Tip: Whether you use a credit union or bank be sure to carefully read the policies regarding any fees that you may end up paying.
Credit Unions Offer Better Rates
Credit unions offer higher savings rates and lower interest rates on loans.
Since they’re not focused on making profits but on covering their operating costs instead, credit unions are able to offer better interest rates to their members.
Everyone wants their money to earn more money. Credit unions help you achieve this because of their great rates. Every dollar you invest in a credit union is reinvested in you. Therefore, credit unions generally have higher deposit rates and lower loan rates.
You’ll notice that credit union savings and checking accounts are usually high-rate accounts that earn you an interest rate higher than the bank industry average.
When it comes to interest rates on loans, you will find competitive pricing. Again, compare rates and you may be pleasantly surprised. Credit unions typically offer student, car, home equity, mortgage, personal, and business loans.
A common misconception is that credit unions do not offer as many competitive products as banks. It simply isn’t true. Credit unions can help you with your next mortgage, car loan, credit card, certificate of deposit and more financial services. Rates are typically better than the big banks, making a credit union account a financial win for you.
Banking At Your Fingertips: Mobile Banking & ATMs
Thanks to shared branch banking and ATM Networks, banking is no longer restricted to a building. It is with you everywhere you go and credit unions have you covered coast to coast. Credit Unions, including Pacific Federal Credit Union, are available to members nationwide. Pacific Credit Union is a proud member of the Star ATM network and nation-wide CO-OP shared branch locations.
Credit Unions Are Insured
Insured deposits: Banks and credit unions accounts are insured for the same amount of money, $250,000. The difference is the branch of the government that insures your deposits. Credit unions are insured by the National Credit Union Administration or NCUA.
Pacific Federal Credit Unions’ benefits include higher savings rates, lower loan rates and convenient digital services.
Pacific Federal Credit Union is a member-owned, not-for-profit, financial cooperative serving the financial needs of more than 1,017 members. Our credit union was founded in 1956 and its assets now exceed $23 million. We invite you to browse our Web site to learn about the benefits of credit union membership and who can join our Credit Union.
Why Choose Pacific Federal Credit Union
Pacific Federal Credit Union is one of the safest financial institutions in the nation. Its members’ funds are insured to $250,000 by the National Credit Union Administration (NCUA), an agency of the U.S. Government.
Our goal is to offer our members the most competitive rates and the finest financial services available today, along with friendly, personal service. We are able to do this because of the unique, non-profit, cooperative nature of credit unions. Credit unions are “People Helping People” organizations, and our philosophy is “Not for profit, not for charity, but for service.”