credit union vs bank

There was a time when to use one or another financial service you had to apply to the bank and there was no other alternative option. But fortunately, this time has left behind and today consumers are free to choose financial institutions to apply to (read about consumer loans).

If you’re not satisfied with the service provided by your bank and you consider changing it, then wait a little and consider other options. One of such options is to apply to a credit union. Many consumers today favor credit unions over banks because quite often these financial institutions offer more variable products and services than some banks do.

But in some occasions American banks can suit you better than anything. Here is a comparison of banks and credit unions to help you to make the smartest financial decision.

Becoming a Credit Union Member

Finding a credit union is easy. You can just check on the Internet, ask the management of the company or firm you work for or apply to representatives of the local government.

To become a member of a credit union it’s necessary to belong to one of the communities, for example, working place or a region. Most people can become members of credit unions so they just should learn more about their options. That’s why you should check your opportunities, surf the Internet, and take an advantage of joining a local credit union.

Take an Advantage of Lower Interest Rates

If you need to get a loan you can always apply to provider of online installment loans  but this option is more suitable for consumers with damaged credit. If your credit is in order then you must know that most credit unions charge lower interest rates than banks do.

For example, last year an interest rate charged on auto loan from a credit union was almost twice lower than the one charged by traditional bank. Also, credit unions charge quite high rates for savings accounts and that’s always profitable for consumers.

There was a tough time when banks and credit unions used almost the same low rates for savings accounts but today the situation is different. Like this you can see that joining a credit union has many advantages. As alternative financial institutions, they can afford to offer their consumers quite low interest rates on loans and high ones for savings accounts and other profitable conditions.

Banks’ and Credit Unions’ Risks to Fail

We happy to see improving of the economy today but still both banks and credit unions can fail. However, credit unions are more proof concerning the economic changes so they could be called more stable and reliable. If something goes wrong then they normally join another credit union. In any case, there is a special insurance protecting consumers.

Another important thing to get to know that credit unions significantly develop the idea of financial literacy and truly take care of their consumers. As a credit union member you can always get aware of the latest financial services and learn to manage your personal finance with a help of seminars.