Are Union Credit Services Preferable to Banks?

Union credit services, also known as credit unions, provide the same experience as a bank, except most people prefer a credit union's service. Many large banks offer poor customer service and have high fees and other additional miscellaneous charges passed to the consumer.

Three Main Differences Between a Bank And Union Credit Services

A huge difference between a credit union and a bank is the ownership interest of the institutions. Credit unions are owned by the members while banks are owned solely by a company. This, in turn, means you are seen as an important part of the bank itself.

The second biggest distinction is the fact that union credit services are non-profit agencies. Being not for profit means that the union credit services are able to offer rates that are significantly lower. They also do not suffocate you with many unnecessary fees. The fees imposed are usually less than larger banks. Additionally, profits are evenly distributed to its members. In contrast, banks are notorious for creating ways to make you pay fees.

Other Benefits You Will Enjoy

Although banks outweigh credit unions with ease of use transactions because they are a significant amount of ATMs available for banks, credit unions are trying to make it easier to access their accounts.  They will provide access to other bank ATMs without a fee. If they charge a fee, a credit union will usually refund that amount bank. The large bank, in contrast, will not typically refund any other ATM usage fees.

Credit unions are insured for up to $250,000 on each account by the National Credit Unions Association. Like banks, credit unions are backed by the government and protection is insured. They also have great perks such as credit card rewards that you can’t get at your local bank as well as other resources such as bankruptcy counseling and more.

Loans are usually easier to obtain at a credit union versus a bank. The lending guidelines at credit union tend to be more lax and straight forward offering better finance rates as well.

Making the Switch

It is becoming more common for people to switch from their bank to a credit union as they find out the many perks behind them. Having a membership to a credit union is often easy to come by and hassle free.