Chances are that you’ve heard about a credit union financial institution in your area, but you never really understood exactly what the whole credit union factor was all about. How’s a credit union better than a bank? Exactly why would I want to leave my current lender for a type of support that Ive never used prior to? What, if any kind of, are the pros and cons of employing a credit union rather than my current bank? These are all questions that individuals likely ask ourselves when trying to figure out where the number 1 place is to put our own money. Luckily enough, they’re very easy to answer.
Just before we talk with the pros and cons of a credit union bank in respect to be able to regular, commercial lender, we have to know what the credit union actually is. Basically a credit union is like a bank that is made for a group of people who all meet the same standards. They could all reside in the same area, be alumni from the same university, and so on and so forth. The biggest thing is that a credit union is like a non-profit cooperative for people who all share some thing in common.
Because a credit union is driven through its members, it possesses a variety of key rewards over commercial banking institutions. The first, and most obvious, is that credit unions usually have suprisingly low rates on loan because they are essentially a non-profit organization. This also translates to increased interest rates for its clients because the credit union isn’t trying to make millions for the investors. Also, the actual member-centric atmosphere of most of the credit union bank services have lead many people to join for the sole reason that credit unions deal with their customers much better than commercial banks do.