Chances are that you have heard about a credit union lender in your area, but you never really understood what the whole credit union factor was all about. How is a credit union better than a bank? Why would I want to abandon my current financial institution for a type of program that I’ve never used just before? What, if any, are the pros and cons of employing a credit union as opposed to my current lender? These are all questions that we likely ask ourselves when trying to figure out where the best spot is to put our money. Luckily enough, they’re very easy to answer.
Prior to we talk with the pros and cons of a credit union bank in respect to be able to regular, commercial lender, we have to know what a credit union actually is. Essentially a credit union is like a bank that is made for a group of people who almost all meet the same requirements. They could all reside in the same area, become alumni from the same college, and so on and so forth. The main thing is that a credit union is like a non-profit cooperative for people who all share one thing in common.
Because a credit union is driven through its members, it provides a variety of key benefits over commercial banking institutions. The first, and most clear, is that credit unions usually have very low rates on loan because they’re essentially a non-profit organization. This also translates to increased interest rates for its customers because the credit union is not trying to make millions for its investors. Also, the actual member-centric atmosphere of most with the credit union bank providers have lead countless people to join for that sole reason that credit unions handle their customers much better than business banks do.