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The Benefits of Credit Unions Over Banks

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Credit unions are basically co-operative organizations that are owned by their depositors. Although the financial products offered are similar to that of the banks, both are different in their own ways. The products offered by credit unions include personal loans, auto loans etc. However, the credit unions have some benefits over banks. Read on to know more about the same…

  • Credit unions make the depositors and not the stockholders their top priority. Therefore, the customer service in credit unions is far better as compared to the banks. They will make every possible effort to make the depositor happy.

  • Credit unions do not lay much stress on earning profits but are much more focused in providing the best services to their depositors at the most competitive rates. For instance, you will be able to get cheap auto loans in a credit union as compared to the banks.

  • When you deposit money in the credit unions, you do not have the limitation of a minimum balance requirement. While the corporate banks levy high charges when the balance drops below the lower limit, credit unions do the opposite of this. They have almost negligible balance requirements, so maintaining the account is very easy.

  • There are many intricate rules and requirements for opening an account in a bank. On the other hand, credit unions have no such requirement and one can easily have an account without any sort of hassle.

  • If you scrutinize carefully, you will find that credit unions offer a very minimal fees on basic transactions. So, if you want to go in for opening a primary savings account or a new checking account, you must consider your local credit union in Killeen Tx to do so. They provide the best financial services without giving any trouble to the customers.

  • When it comes to the interest rates, credit unions score a high point here too. They offer lower interest rates on mortgages as well as credit cards. Therefore, you must go to a credit union for mortgages and even personal loans too.

  • Since the credit unions are non-profit organizations, they do not raise money just for profits. Therefore, they do not charge an exaggerated amount of money on various loan products.

  • You do not have to take the headache regarding the security of your money in a credit union. This is because the credit unions are insured up to as much as $250,000. Although the risk involved is the same as that of a bank but this is compensated by several other lucrative services provided by the credit unions.

  • The profits in a credit union are not divided amongst the stockholders. Instead, they are shared among the members in the form of bonus checks. Different credit unions have different types of bonus schemes. So, you must visit your local credit union to determine what all offers they have for their customers.

  • Most of the credit unions do not have rigid or strict rules for auto loan eligibility. But this is not the case in banks where most of the applications for loans are rejected on one or the other grounds.


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