When most people think about switching financial institutions, they think about factors like whether the new institution is closer to them, the customer service they get and whether the institution offers services like an online banking platform and a mobile app. One thing they don’t consider, though, is whether the institution is a bank or a credit union.
That’s understandable, especially since the two institutions can appear to be the same at first glance. However, the fact is that credit unions have some benefits banks simply can’t provide. Here are some immediate advantages you’ll get when switching from a bank to a credit union
You’ll find that credit unions almost always offer the best rates on loans, not to mention mortgages and credit cards. If that weren’t a big enough advantage, credit unions also have some of the highest interest rates on saving and investing accounts, including certificates of deposit (CDs) and IRAs.
Nobody likes paying fees, but they are a source of revenue that nets for-profit entities more money. Not-for-profit entities like credit unions, though, tend to charge fees only to cover the cost of certain services.
That means credit unions charge lower fees across the board, and in some cases do away with fees for some services altogether. Usually, you’ll find that credit unions don’t charge ATM fees, and even overdraft fees are lower.
By and large, banks are not flexible. If you overdraw your account, the teller will be understanding but they won’t waive the fee. If your credit score isn’t high enough, don’t expect to get a loan.
This flexibility even applies to loans. When you apply for a loan, lending advisors will meet with you and go through your credit history. If your credit history isn’t great, they’ll talk with you about what has happened and why you’re looking for a loan.
If the lending advisor thinks that a loan will help you and you’re currently doing well financially, they may very well recommend you get the loan even if your credit score is less than stellar. It’s worth pointing out, however, that even if the lending advisor doesn’t approve you for a loan, they’ll still work with you to help you improve your financial situation.
Above all else, credit unions want their members to succeed financially. That means they provide a lot of additional resources banks don’t. At First Alliance, for instance, we have several guides that walk you through the basics of building up your savings account, creating a budget, building up your credit score and even switching financial institutions. We also put out a weekly podcast that has different guests and covers key financial topics as well as a blog (that you're reading now!) that has posts ranging from how to pay off credit card debt to what to do if you buy a haunted house.
Switching from a bank to a credit union offers you advantages that begin literally as soon as you walk in the door and are greeted by a member advisor. Once you become a member, you’ll also appreciate the lower fees and better interest rates.
If you want to fully experience the advantages a credit union can offer, become a member of First Alliance Credit Union today. In addition to the advantages mentioned above, you’ll also be able to take advantage of our robust online banking platform and mobile app, as well as use our Advisor Supported Kiosks that let you do your banking on your schedule.