Explain Credit Unions vs Banks

It’s time to decide which is best: Credit Unions vs. Banks. This is a critical decision that impacts your borrowing power and future borrowing possibilities for yourself and your family.

You need to know what the differences are so that you can choose wisely. First, you must understand how credit unions operate. Then, compare those differences with what banks offer.

Both kinds of institutions offer strong financial services to their members. Banks only have few eligibility requirements and often more specialized product offerings, although they usually charge higher fees and often have fewer product choices.

Credit unions are much more selective in its members, often having a union membership for several hundred members or more; and even then, there are regional distinctions among local branches.

In addition, credit unions tend to be more customer-oriented than are traditional lending companies. This is important if you need to borrow money quickly.

Banks are notorious for doing whatever they can to get customers into the door, including requiring expensive and lengthy credit applications that many people are not prepared for.

In contrast, credit unions tend to be a little more lenient in their lending policies.

Customer-oriented credit unions tend to do better of offering competitive interest rates and flexible terms.

Banks on the other hand, have a much larger incentive to keep their interest rates low, since doing so boosts their own profits.

If you need a loan quickly, it would be wise to go with a traditional bank. But if you are a small business owner or you run a home based business, a credit union would be a good choice.

Credit Unions is a great alternative for those seeking interest rates, credit limits, and additional services from their financial institutions.

The world needs a stable banking, but that doesn’t mean national banks are your only choice.

For many years, credit unions have worked hard to establish themselves as trustworthy and responsible institutions, and now they are looking to expand and increase their offerings. What are you waiting for? Check out a credit union in your local area today!