What are the benefits of using a credit union over a bank?

Question

Or visa versa

Answer 1

There used to be a time where the differences were more magnified, but as credit unions become closer to banks and vice versa, the lines are becoming blurred.

Credit unions mostly bank certain affinity groups, like workers of the same industry, students of the same university, etc. and used to offer only personal loans, like mortgages, auto and consumer credit, along with checking and savings accounts. Credit unions argue that they are able to offer cheaper product to its members because the financial products were limited to being offered to members, which are also its shareholders and customers.

Banks (not thrifts) could offer a wider range of products to a braoder range of consumers (now they can offer non-depositary products like brokerage, insurance, etc). And banks argue that their economies of scale allow them to offer better priced services.

Banks are generally larger and credit unions smaller. Generalizations: Pros to banks are they have better resources and are more technologically advanced. Cons are that you are a "number" to a bank and your credit union is there to serve you. Credit Unions are not allowed to offer some products.

But, these days community banks might look alot closer to a credit union, while large credit unions may look and feel more like a bank.

Answer 2

CREDIT UNIONS HAVE LOWER INTEREST RATES!!!! MOST OF THE TIME THE BANK IS A LITTLE HIGHER THAT THE CREDIT UNION

Answer 3

Credit unions are non-profit member-owned institutions, and thus tend to be much nice to their customers/owners. And give them better deals, lower fees, lower loan rates, etc.

However, credit unions tend to be smaller institutions, often with one branch. They many not have access to a large ATM network.

Answer 4

25 years ago there were some differences. Today... compare their rates and services to other banks. Like anything else... some are good..... some are not so good.