Finance

The Advantages to Becoming a Credit Union Member

It is rare for a person to bank with one financial institution for their entire life anymore. Many people often look for a better bank than the one they currently use. One alternative people may or may think about when selecting a new financial institution is their local credit union.
A credit union is different than a traditional bank. It is a member-owned financial institution called a co-operative. A credit union is operated and started by members. In some instances, owners of the credit union share profits.

Credit Union Offers Better Interest Rates than Banks

Banks focus on a person’s credit score and work history. A credit union offers lower rates on auto, school and other type of loans. The reason why the rates are so low is because credit unions pass on savings from any money earned to their members.

Credit Unions have Lower ATM Fees

Another advantage of being a credit union member are ATMs. Big banks advertise how convenient their branch ATMs are because they saturated them. Credit unions usually don’t saturate Houston. However, credit unions offer shared ATM branching. This means a member can use a different credit union’s ATM. In addition, ATM fees are often lower than a traditional bank.

Credit Union Fees are Lower than Traditional Banks

Bank fees always make the news. Some bank makes news for increasing their banking fees. Other banks even create new banking fees to charge their customers. Credit Unions are different. They have some of the same fees such as insufficient account fees. However, the rates are traditionally lower than the banks.

Credit Unions are Focused on Providing Educational Perks

The term “education perks” does mean they offer free education. They do offer school loans. Instead, they offer more products to help their member grow and make more money. These products include financial services, seminars and health insurance. The seminars are focused on identity theft and managing credit card debt.

Credit Unions Provide a Family, Close-Knit Atmosphere

Big banks are more formal and cold. In some banks, customers even have to pay to speak to a teller. Credit unions are financial institutions have the attitude that everyone member is family. They provide a friendlier atmosphere because they know their members by name and are locally connected to their neighborhoods.

Credit Unions will Work with Their Members

A person who has bad or poor credit generally cannot get a loan from a traditional bank. Big banks look at credit scores and not whether a customer can repay a loan now. A credit unions are different. They are more willing to work with members who have poor or bad credit or a difficulty in qualifying for a financial loan.

Joining a Credit Union in Houston

Joining a credit union requires meeting specific requirements like living in or working a community. Joining this type of financial institution also requires paying a membership fee. Anyone wanting to join a credit union should research membership requirements.

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