Having some sort of financial account is essential to a healthy financial life. Checking accounts keep your money safe and easy to access, and savings accounts offer interest rates to help your money grow. Financial institutions also offer credit cards and loans so you can get what you need in life. Is a bank or a credit union the better option for you? Here are some reasons why a credit union may be the better choice.
What is a Credit Union?
Credit unions in Elmwood Park and other cities are non-profit financial institutions owned by their customers. You have to fit certain criteria to join, like working at a certain company or living in a certain area. You then pay a membership fee that technically buys you ownership in the union, and you have access to all of its benefits.
Better Interest Rates
As non-profits, credit unions can offer much better interest rates on savings accounts and loans. Since they’re not skimming profit off of it, the interest rate on loans is much lower, and the interest rate on savings accounts is much higher than at a traditional bank. That means it costs you less to get a loan, and you make more on your savings account.
More Personal Service
Due to their criteria, credit unions often have less customers than traditional banks. That means that tellers can get to know the members better at a credit union. They can offer more personalized service when you come in because they have less people to shuffle through in a day.
Financial Flexibility
If you’ve had trouble getting credit cards or loans because of your financial past, a credit union may be able to help. Since they aren’t considering thousands of applications a day, they don’t need to rule people out for credit or loans based on numbers like income and credit score. They can consider you more fully as a person, which gives you a better chance at getting the credit you need.
