Business & Finance Credit

7 Reasons To Choose Credit Unions

Smaller focus Similar to mom and pop businesses, these lending institutions tend to be smaller operations than regional and national bank chains.
Their smaller size means that they will likely be more focused on establishing quality services for their customers and spend more time making sure their customers are happy than larger corporations.
This aspect is great for customers who would prefer to support businesses with a local focus.
Better Interest for Cards According to information from the NCUA, last year's average credit card interest rate was 12.
85 percent at banks, versus 11.
56 percent for credit cards issued from credit unions.
This isn't a huge difference, but less is always better when it comes to interest rates.
Union cards also tended to have lower fees and fewer in general.
Easier to borrow There is no need to await your loan status on tenterhooks since lending decisions are normally made locally, which means quicker turn-around time and more flexibility than loans with large corporations.
Some can also offer signature loans to members who have good credit and standing.
Less chance of failure Banks, insured by the Federal Deposit Insurance Corporation fail much more frequently than their counterparts.
44 FDIC insured institutions failed in 2011.
That's not to say credit unions have no chance of failing-9 NCUA insured institutions failed in the same year.
However, there is much less chance of this happening since they are generally smaller and not as focused on profit.
This means that they will loan less frequently and accept fewer risks Lower loan rates More often than not; these lending institutions can offer their customers lower loan rates.
Last year, the National Credit Union Administration released information that confirmed that the average rate on a 36-month loan was about 2.
85 percent.
Compare that rate to an average 5.
59 percent at banks, which is nearly twice the amount.
Run by customers You can have confidence doing business with your credit union.
Why, you ask? Because each member is also a partial owner, meaning they also have a stake in the success of the union.
It is also managed and staffed by its customers on a volunteer basis.
As a member, you even have the option to run for a seat on your union's board of directors, which is not feasible at a bank.
Better savings rates The NCUA also gathered data that confirmed that interest rates for at least 10 different types of savings accounts, including savings and checking, tend to be a little higher at credit unions than they are at banks.
And who doesn't want more money for their deposits?
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