Many people don’t really know the difference between a bank and a credit union, here are the 10 good reasons to choose a credit union instead of a bank.
While banks have clients, credit unions have part owners or members. When you open an account, your account is actually a share and provides you voting rights. Instead of a board of directors, decisions are made by vote from shareholders. Each member has a voice in how operations are run, no matter how small her share may be.
Some banks have 30 to 50 unique fees for checking accounts! Not TVACCU, always FREE for checking. Unlike big banks, credit unions aim to minimize account fees. For example, credit unions are well known for not charging monthly maintenance fees, which are about $12 to $14 at big name banks.
This is a major advantage of working with a credit union. Credit unions have a much smaller client base, and they work very hard to keep them happy.
Data from the National Credit Union Administration (NCUA) consistently shows that credit unions outperform banks. For example, in March 2017:
Credit unions do not only offer cheaper financing options, but also provide low-income or financially distressed individuals a chance to qualify for financing.
Credit unions are well-known for providing some of the most attractive credit cards. Some of the features include:
When it comes to providing car loans, credit unions have the local advantage over large banks.
Several people end up with a financial hangover from the Black Friday and Christmas “deals” because they rack up their store and credit cards. Shopping for gifts on plastic is a dangerous habit. While almost no banks run “Christmas Clubs” any more, nearly 72% of credit unions do. TVACCU’s is going strong. Christmas Clubs are special savings accounts that encourage saving for the holidays. The main objective of these accounts is to stash this money away from yourself and make the funds grow until the first days of the holiday season. By saving throughout the year with a Christmas Club, you have a higher chance of actually saving and decreasing your credit card use.