Sunday 10 June 2012

What Are Some of the Ways That Credit Unions Beat Conventional Banks?

By Timothy Paben


During the course of the last several years, more and more people have started using credit unions instead of conventional banks. Individuals are getting irritated with the lack of service they are receiving from traditional banks. For these individuals, credit unions beat the level of service provided by modern banks. If you have been looking into switching from a bank to a credit union, but don't know precisely why you should, this article should help you tremendously.

Credit unions cater to people who fall within a particular group. For instance, many credit unions allow anyone who resides in a specific county to become a member. Additionally, some credit unions offer services to individuals who work in a particular field. Most cities are home to at least one credit union, so you should easily be able to find a location that you can become a member of. In this article, you will learn more about how credit unions function and the ways in which they beat conventional banks.

1. If you are a member of a credit union, you are also an owner of the establishment; anyone who joins also become a partial owner automatically. Due to this, anyone who is a member of a credit union possesses a fair amount of control over the daily operations of the institution. For instance, each credit union usually has a board comprised solely of members. If you are asked to sit on such a board, you will have the ability to send voting ballots to other members, plan meetings, and be part of other critical projects.

2. When you make the decision to switch to a credit union from a conventional bank, you won't have to sacrifice any of the standard services that you have come to rely on. You will still have the ability to open both checking and savings accounts, get a debit card, and apply for home and car loans. You might, though, realize that you are suddenly receiving a higher level of customer service. This is an important way that credit unions are able to beat traditional banks. Most credit unions offer an extremely personal level of customer service.

3. Credit unions are non-profit organizations. Due to this, they usually provide their members with great interest rates. Standard banks often use the profits they earn from charging high interest to bolster their bottom-line, but credit unions don't do this. This gives them the ability to maintain low interest rates. If you are interested in taking-out a loan for a significant purchase, such as a new house or new vehicle, you should seriously consider the benefits of applying for your funds at a credit union.




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