Many people have had disastrous experiences with their bank. All you have to do is look at all the hidden fees and other problems you have had to deal with, as they can often occur with large, powerful national banks.
Here’s the bright side: if you leave one giant bank, you don’t have to go straight to another. Try a local credit union.
A credit union is a nonprofit bank that is owned by its members, collectively. Credit unions provide the exact same services as banks. What sets them apart from banks is that instead of profits being distributed to shareholders, they are channelled back to the members instead. Members have privileges. They are able to elect volunteers for the board of directors, for example.
Due to their framework credit unions have your best interests in mind. Banks and megabanks on the other hand, typically do not
Tired of your current bank and looking for something new and improved in your life? Try a credit union, as it is less predatory. This could be a great option for you.
Credit Union Members Come First
Banks are corporations with shareholders, and must continuously increase their earnings. Their marketing and public relations may claim or imply they care about you, the customer. One might infer that they generally do not, however. Many people are not aware of this.
On the contrary, credit unions do not have shareholders, as they are a non-profit. Instead of structuring their company around maximum revenue, the organization’s objective is to retain customers with loyal services and help.
Because of this, credit unions have a tendency to be more forgiving than “normal” banks (with things like low credit scores or recurrent overdrafts).
Commonly Lower Fees
For traditional banks, fees are a major way to increase revenue. Fees like service fees, loan origination fees, overdraft fees, and more, are various ways the traditional bank can be creating a negative experience for you. Some banks are incentivized to implement several varieties of fees to boost profits. As you may know, this leaves customers feeling unhelped and unheard.
Here’s the good news. Transfer fees, ATM fees, and even overdraft fees will often be much lower with credit unions. This helps you save money in the small ways. But this isn’t the only reason you should switch to a credit union.
More Suitable Interest Rates
Another benefit is that credit unions frequently offer better interest rates on loans (like car loans and mortgages). You could improve your financial state by going through a credit union, instead of a traditional bank, for the reason of better interest rates alone. Some have considered using a credit union for student loans.
Bad Credit Score? Don’t fret. Credit Unions Are Forgiving.
Credit scores are a reality we all must deal with. For many of us, their guidelines and regulations can seem ambiguous. For traditional banks, having a poor credit score can affect your ability to qualify for loans when you are in need of things like housing and car purchases.
Overall, credit unions tend to be more flexible when working with low-credit members than traditional banks. If you meet with a representative in person, many have found they often willing to find a solution with you.
Do You Trust Your Bank? It May Be Time To Try A Credit Union
Traditional banks are infamous for having an absurd amount of hidden fees, poor customer service, and manipulative sales practices. Because of this, it is no wonder why so many people don’t feel safe to trust these money-hungry financial institutions.
Credit unions are a good alternative to consider, as they offer the same services as a regular bank, but with a more authentic focus on customer service. Maybe you are struggling with bad credit, or you just want to bank with a company that has a strong ethical company foundation. A credit union could be your solution.