A bank vs a Credit Union Which one is better?

Question

I have had awful service with several banks, and people keep telling me to go to credit unions, they don't really tell me why...they just say "its better" with no real reason...in your opinion which is better..and if you could tell me why..that would be appreciated.

Answer 1

Credit unions aren't automatically better than banks, but they often are better. Here's why I offer this opinion:

- Credit unions typically have far fewer fees than banks. Typically there is no monthly service charge if you have direct deposit of a paycheck. (Fees for bad behavior like bouncing checks are similar, but that is under your control.)

- Personnel are generally friendlier than in banks. They usually are locally focused and that helps employees to see customers as friends and neighbors.

- Loans are generally very quick and easy to process for the most common types. Credit unions are always the quickest, easiest, cheapest way to get a car loan.

- Interest-bearing checking. Credit unions generally offer interest-bearing checking or have an easy to use system that lets you "sweep" extra cash into a money market account.

- More support when bad stuff happens. Credit unions will give you less of a hard time when something like fraud or identity theft hits home.

- Consumer-focused customer services. Most credit unions can help you negotiate a car price, advise you on the best extended warranty policy, and explain the difference between a home equity loan and a home equity line of credit.

- Many large employers have a credit union ATM or even a branch right on the premises.

- Downsides: Usually fewer branches than a bank. However, nearly all credit unions participate in a nationwide free ATM network, so you can use the ATM at (almost) any credit union. Credit unions don't offer a full range of services, so if you are looking for start-up capital for your corporation or trying to finance a crop-dusting airplane, you might look to a bank or financial services company instead. Credit unions don't have the classy name recognition of the big banks, so if you want to impress people by showing off your Marine Midland folders or your Royal Bank portfolio, do your business there. For 95% of us, though, the credit union is a much better deal.

Answer 2

Credit unions are financial institutions, like banks. They offer many of the same products and services -- savings accounts, checking accounts, ATM/debit cards, credit cards, auto loans, mortgages, home equity loans, etc. Both have deposit insurance so your money will be safe. Credit unions have insurance through the National Credit Union Administration, which is a government agency similar to the FDIC. The main difference from your viewpoint as a consumer is that you can become a customer of any bank, while credit unions can only serve people who fit in their "Field of Membership." Some credit unions are sponsored by a company and only the employees can join. There are numerous credit unions that have "community charters" which allow them to serve people who live within a defined geographic region (i.e. city, county, zip codes, etc.). Most of the time credit unions offer better rates and have fewer fees than other financial institutions. Banks have more branch offices than credit unions. Hope this helps. Good luck!

Answer 3

Credit Unions are better because, most of the time, they don't have all the awful fees that most banks do. Banks charge fees for EVERYTHING, such as using your ATM card. I got charged 50 cents for every month that i used my debit card atleast one time. Also, Credit unions usually don't charge HUGE overdraft fees. When I was with Associated bank about 5 years ago, I overdrew from my account by like $25.00 give or take. Not only did they charge me an overdraft fee of like $29.00, but if I didn't pay back within one week they start tacking on $5 PER DAY!! I wound up paying the bank like $200 just to make up for the overdraft and get my balance back to ZERO!! I have been with my credit union now for about 5 years and have NEVER paid an overdraft fee. And last but def. not least, credit unions are good for...you guessed it CREDIT! When you get to the point where you need to take out a car or home loan, not only is it easier to obtain through a credit union, but they usually have better rates too. I hope this helps.

Answer 4

I have been with Fair winds for a long time and they have NEVER done me wrong. Credit Unions are way better. My husband before we were married had some bank( cant remember the name) but his service wasn't good. But we join out accounts together and he agrees that Credit Unions are better. They also help you build your credit if needed. They do alot for you. So I hope this helps you out