The dilemma of choosing a credit union over a bank is not a difficult one for many people. Credit unions have taken the initiative in recent years by allowing a greater number of people to join than ever before. While easing eligibility restrictions, credit unions are also nonprofit organizations that are committed to the local community, so instead of supporting a profit-oriented institution like a bank, you’ll actually be supporting local donations to schools and churches, as well as projects that help improve the local infrastructure and create better employment opportunities for workers within the community.
But the great thing about credit unions is that, even if you’re not that interested in the local community, there are still some great reasons to join a credit union Colorado Springs institution:
- The interest rates for just about any kind of loan or credit card will be significantly lower than the one you might benefit from at a bank. Credit unions don’t need to pay the kinds of taxes that banks are required to cover, and they also don’t aim to make huge profits through complex investments. In fact, all of their profits are returned to the communities whose hard-earned money was used to establish the union in the first place.
- You won’t have to walk or drive too far to find a locally available ATM machine that will allow you to withdraw money from the account you’ve opened with your credit union. The fees for ATM withdrawals will also be less expensive than those you might have to pay at your local bank.
- Banks are less willing to yield when faced with the prospect of a borrower having financial difficulty. A lot can happen in 10-20 years, and whether you’ve got a mortgage or a car loan (or both), you could find yourself in the position where you might be late on some payments or unable to pay them for a while. Credit unions are able and willing to work together with you in a more helpful way and assist you with refinancing and other solutions that banks might be less willing to employ in certain cases.
- Whether you want to refinance, get a loan, open a savings account or raise your credit score, a credit union is almost always a better choice than a bank. Through their lower fees, improved approval process and better approach towards customers (which really end up being fully established members of the union), they will help you get exactly what you need and even surpass all your expectations in the process.
Perhaps the best reason why a credit union might be better than a bank is the approach they have towards individual members. As mentioned, anyone opening an account with a credit union will become a member, and members have certain privileges.
From the ability to use online technologies for transactions and communication – which is even more relevant in the context of the COVID-19 crisis – as well as the benefit of getting involved in the union’s plans and organizational decisions, members can enjoy greater freedoms and even end up influencing important policies that can benefit the entire local community. This is one thing that you’ll never really be able to achieve when you join a bank.