The Benefits of Becoming a Member of a Credit Union

Most individuals enlist the services of a bank without looking for other options in the financing world. However, credit unions provide great services that benefit their members. There are over 2479 credit unions set up in the United States, with assets worth around 20 million. 

Credit unions are owned by their members and are non-profit financial institutions. Their members share a common bond, which is to achieve their financial goals. Any profits earned by the union are directed towards members.
Here are some of the benefits of becoming a member of a credit union:

Lower fees

Banks are known for charging many hidden fees for every additional service you sign up for. They primarily make their money from fees, monthly charges, and loan originations. Since the aim of credit unions isn’t profit, their fees tend to be lower than those charged by banks. Transfer fees and overdraft fees are lower too. Credit unions also don’t charge any ATM fees. 

Make sure you read all the fine print carefully, though, whether you’re joining a credit union or a bank. Understanding all the policies and clauses is vital.

Better interest rates

Credit unions are known for providing higher interest rates on savings and lower interest rates on loans. Their goal is to cover operating costs instead of making a profit; therefore, their rates are more beneficial to members. 

Credit unions are also known to give loans at much lower rates than banks. Some members can even qualify for further discounts on automatic payments. 

Interest rates on savings or deposit accounts, on the other hand, are higher than most local banks. Credit unions are better able to balance these rates due to their lack of profit motive. Members can take advantage of the attractive rates on car loans, student loans, and mortgages too.

Help work with bad credit

 

Banks are always skeptical of customers and regard credit ratings as a priority. Banks often aren’t as welcoming to those with poor credit or are finding it difficult to qualify for a loan. 

When you become part of a credit union, officers meet with you to have a one-on-one conversation about the loan terms that are possible for you. A credit union is the best option for those with poor credit who are looking to get a mortgage for a new house. Depending on the credit union you sign up with, you could also be part of education programs that help you with your finances.


Tyndall Federal Credit Union is a member-friendly financial institution that offers mortgage lending, and bank accounts in Panama City. Get in contact with them at 850-769-9999 to know more about their services.

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