Banks are the go-to choice for the majority of people across the world, overlooking other alternatives and their potential. While banks have a long-standing history of being a stable option in the financial world, recent events like the economic downturn in different financial institutions prove people need a safer option to store, transfer, and save money.
That’s where credit union comes into play, which is a form of financial service that functions similarly like a bank but are generally more welcoming compared to your stone-cold image of its more popular counterparts. While credit unions are believed to be the best option for bridging the gap between your monetary hopes and problems, how exactly can it benefit you?
Exploring the Top Benefits of Joining Credit Unions
Benefit #1: Accessibility
Seeing as credit unions are member-owned, you can rest easy knowing that they aim to provide the best financial solutions to ensure all members can flourish. Credit union members that have impressive credit scores can benefit everyone by lowering the fees, resulting in a more open and helpful community that is easier to access compared to most banks.
Benefit #2: Lower Fees
Many people struggle to keep up with payments, which also compromises their credit rating since your payment history can impact as high as 35 percent of your credit score. That’s why most are forced to take high-interest personal loans whenever they find themselves in a financial pinch, leading to a cycle of payments.
Fortunately, joining a credit union can help put your payment history back on track as it offers lower fees and interest rates to cater to stockholders. This makes it easier to pay off, making it highly beneficial for those who are looking to build or repair their credit.
Benefit #3: Better Interest Rates
In addition to lower fees, credit unions also offer better interest rates to members, especially on loans. The best part is that you can also apply for more discounts if you’re going for automatic payments, which means you can save thousands of dollars when purchasing car loans, student loans, or mortgages.
The Bottom Line: How Credit Unions Can Give You Peace Of Mind For Your Savings
Seeing as credit unions offer lower fees and better interest rates, you can have more cash in your pocket to go toward paying off your debts. Banking fees, for instance, can accumulate a ton of miscellaneous expense as it charges monthly maintenance fees, inactivity fees, card replacement fees, and more, while credit unions can help ease your wallet by offering fee-free ATM use for members.
Not only does this help put you up to speed with your payment schedule and credit history, but they can also offer educational programs that can help its members build improved financial habits to manage your bad credit.
Looking for the best community-based banking institutions that can help manage your finances in Buffalo, NY? Here at Good Neighbors Credit Union, we simplify your wealth management plans and help protect your investments, deposits, and other financial services.