People may notice that there are not many credit union branches on the street and even some of them are operation 100% online. However, people still choose to open an account in credit union instead of other financial institutions for several reasons. First of all, members are being the first priority in credit unions. Secondly, credit union charges lower service fees comparing to other financial institutions. Thirdly, credit unions offer comparably better interest rates. Lastly, credit union often set lower requirements for their members to apply for loans.
Since a credit union is community-based which created and operated by its members, maximizing member’s benefits is the first thing it cares about. As a result, instead of providing many roles and restrictions, credit unions are more member friendly which mainly work on helping members to achieve their financial goals.
-Low service fees
Credit unions are not-for-profit institutions, so they do not make money from charging high monthly service fees. Also, there is no fee being charged for withdraw money from ATMs. Therefore, members could save a lot of service fees for joining credit unions.
-Better interest rates
Credit unions often offer higher interest rates for savings. It means members are able to receive more interests if they deposit money into a credit union savings account. At the meantime, the interest rates for loan are low, which means members pay lower monthly payments for their mortgages or car loans in a certain term.
-Easy loan application
It is usually hard for people with low credit score to apply for loans. Having a low credit score is not going to be a problem if you apply loan through a credit union. Credit unions often have lower credit score requirement and a specialist will help you to find a solution that is best for you.