Credit Union 101 – Why It’s Better Than Regular Banks

One of the primary decisions that an adult makes in his life is the choice of where to store and invest their money. The most common answer to this would be to approach a bank—through their help, you can obtain loans, establish a line of credit, and securely invest your money without fear of it being lost or stolen.

While this may seem to be the logical choice that many follow, this is actually not the only one you can make for yourself. A perfectly valid and highly-rising trend in today’s society would be approaching a credit union for help with your finances.

What is a Credit Union?

Credit unions are much like your average bank—they store your money in savings accounts, give you loans, and give you financial advice. The difference, however, is that these private groups are member-owned and not-for-profit, working cooperatively with each member to provide better financial services for the community.

Why Join a Credit Union?

Joining a credit union is no simple choice. They don’t always have the most sophisticated equipment, unlike your big corporate banks, but they are much homier and generally promote a community-centered mindset. More than that, however, they operate without profit in mind, preferring to use their gains to grant better services for their members.

To further establish that point, here are four major reasons that credit unions should be your go-to instead of your average run-off-the-mill bank.

They help you qualify

One of the biggest difficulties in transacting with a bank is that any move you make must be equally represented by your qualification for it. On one hand, this is necessary to keep the bank running properly, but on the other, it can heavily cripple an individual who really needs help.

Credit unions won’t simply shoo you away for having a poor credit history, instead, they help you qualify through a very thorough look into your finances. Qualified specialists look into how best to help you qualify instead of focusing merely on one aspect of your credit.

They give expert advise

More often than not, a member will find themselves in a rocky situation with their credit score. Credit unions will attempt to help the individual on how to make the most of it, while bringing it back up to par. Most groups have at least one certified credit counselor available for advice, giving you the strategy and information you need to get yourself back on your feet.

They offer lower interest rates for loans and credit

Much like a bank, a credit union can give a loan, but unlike it, the interest rates are much lower. Instead of utilizing the members’ money to make a profit, they instead utilize the potential earning to give lower rates for their members. This way, the credit union aims to help the community, using the money within it to benefit the group in totality.

The Bottom Line

If you’re having trouble applying and getting accepted at a regular bank, then consider approaching a credit union instead. Not only do they have better qualification standards, but they also help the community as a whole, providing programs that benefit not just their member, but the general community as well.

Are you looking for a local credit union banking service in Buffalo, NY to help you with your finances? At Good Neighbors, we don’t just handle your money, but we also help you manage it better for the best effect. Get in touch with us now!

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