What is a credit union? Is it different from a bank and is it a better choice? We’ll give you the information to decide.
A credit union is a non-profit money making cooperative where members can borrow from pooled deposits at lower interest rates. They exist to serve their members rather than maximize corporate profits. If you belong, you are part owner. One owner, one vote regardless of how much or how little money you have. Currently, about one third of Americans belong to a credit union.
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Can anyone join a credit union? Yes, there is a credit union out there for everyone but not everyone can join every credit union. Membership is tied to being part of a certain community like a profession, a college, or a membership in an association or organization.
What are some of the reasons a credit union is better than a bank? You’ll get a higher interest rate on the money you keep in the union, a lower interest rate on loans, and a lower rate on your credit card. They have less fees. Low or no minimum to open an account. You will have the same coverage as in an FDIC insured account.
Here are a few cons. Because a credit union is not for profit, they aren’t as tech savvy as big banks. They may not have things like mobile banking for instance. They don’t have a lot of ATM’s so you may have fees. They don’t have as many services as a big bank.
Who is best helped my joining a credit union? People that don’t have a lot of money, people with poor credit, smart people who want loans at lower interest rates!
Take a look at the show notes, I included a link to help you find a credit union in your area.
Morgazm Grapefruit Zested Blonde Ale: A refreshing summer beer.
One Village Coffee: A local Pennsylvania roaster.
My Credit Union.Gov: Find a credit union in your area and then search by criteria to join. I played around with this and found 60 near me, three of which I could join.