People love credit union more than other financial institutions like banks, insurers, and investment services. Credit unions are financial organizations. They provide financial assistance to their members. Usually, it entails individuals with a common financial objective coming together and then opening a joint bank account. All members have equal ownership of their union and are require making an equal contribution. While banks have FDIC as their insurance body, credit unions get insurance from NCUSIF. Credit unions cannot be a perfect choice for everyone, but here are some reasons why most people get involving with them.
Easy-To-Get Credit-Building Loan
It is very easy and typically common for credit unions to offer credit-building loans to their members, a condition that is not noticeable with large banks. Some credit unions give credit-building loans. These loans are secured by a certificate of deposit or savings account. This enables a hardworking member to build his credit history by making timely payments on borrowed loans.
You need to open an account, and then make a deposit to get started with a secured loan. The amount of money deposited in the account serves as collateral in case you default in payment.
Free Access to Numerous ATMs
Most credit unions have links with the CO-OP network. It gives member institutions access to over 29,000 free ATMs. The ATMs are available all over the United States and in some foreign countries like Japan and Italy. If you are a member of an active credit union, you have the opportunity to use these ATMs.
Earn More on Interest Rates
Unlike banks, credit unions offer a high interest on every deposit you make. Since credit unions are nonprofit organizations, they provide increase interest rates on certificates of deposit (CD) and savings account. At the same time, the interest rate charges on a car loan are much reduced at credit unions. For instance, as of June this year, the average rate on a 62-month brand car loan was 2.72 percent at credit unions, and 4.68 percent at traditional banks. This is an indication that traditional banks mercilessly dig deep into our account, while credit unions are a little bit considerate.
Credit Unions Provide Free Financial Training Services
Are you looking forward to obtaining free knowledge on budgeting, improving your credit, saving, and other money issues? No worry then. The credit unions have financial literacy terms that entail one-on-one coaching and workshops. For example, The Federal Credit Union Provides free credit counseling services via agencies that got certifications from the National Foundation for Credit Counseling. Furthermore, credit unions offer sufficient training services using their adequate modernized facilities. They tackle very sensitive topics that are indeed problematic to many people. Such topics include home buying, estate planning, car buying, and much more.