Credit Union Advantages
Across countries, surveys repeatedly show members are more satisfied with the service they receive from their credit union than customers of banks. Because credit unions are democratic, member-owned cooperatives, members have the power to direct credit union policy. If the majority of members are dissatisfied with the Directors who set the policy of their credit union, they have the power to replace them. Credit union elections are based on a one-member, one-vote structure. This structure is in contrast to for-profit, public companies where stockholders vote according to the number of shares they own.(Courtesy World Council of Credit Unions)
- Becoming a member of a credit union is advantageous because credit unions are non-profit, and exist to provide members with a place to save money.
Credit unions typically have lower costs associated with all of their products and services.
- Credit unions were created to enable people to pool their financial resources to help themselves and each other, working together as a team to create solutions to meet their financial needs. When you compare credit union information to that of a traditional bank, you’ll find lower interest rates when borrowing and higher percentage rates in savings as a credit union member.
- Because they are not-for-profit institutions, credit unions offer better rates on credit cards, sometimes up to three percentage points lower than the average bank card rate. Typically, they are more forgiving regarding credit and may even allow people with past bankruptcies to qualify for unsecured cards.
- Credit unions are an especially good option for people who are building credit for the first time or trying to re-establish good credit, as they are typically smaller organizations which offer personalized service and are more willing to consider factors beyond the “black and white”.
- Financial education is available to all members. Credit unions assist members in becoming better-educated consumers of financial services.
- Your credit union can put you in business with a small business loan. And some credit unions have established a relationship with the Small Business Administration (SBA) to expedite loans to credit-worthy small businesses.
- Credit unions are governed through an unpaid, volunteer Board of Directors, democratically elected by the credit union membership.(Credit Info Center)