The 7 Benefits of Membership in a Credit Union

Filed in Business Innovation by on July 14, 2022 0 Comments

In this digital age, there are a lot of ways to manage your money and financial services. You can bank online, use mobile apps, or even harness the power of social media and peer-to-peer networking.
These days, many people opt for online banks and mobile apps to manage their money. But what about joining a credit union? Instead of a for-profit company, why not become a member of a not-for-profit financial cooperative?
There are many reasons why you should join a credit union as soon as possible. These financial institutions offer excellent membership benefits that you won’t find anywhere else. If you’re looking for ways to grow your savings while also remaining loyal to your local community, read on to learn more about the benefits of joining a credit union today!

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The 7 Benefits of Membership in a Credit Union

Credit unions are not-for-profit financial institutions that exist to serve their members rather than shareholders. In other words, instead of prioritizing profit, credit unions put members first. If you’re looking for a way to take control of your finances and save money at the same time, joining a credit union might be the perfect solution. Membership in a credit union has many benefits. Here are seven reasons why you should join one today:

Members cooperative credit union

1. Credit unions offer better rates on loans and credit

Credit unions can offer lower interest rates on auto loans and mortgages than banks do, because they aren’t profit-driven. Credit unions are nonprofit organizations that exist to serve their members rather than shareholders, so they don’t focus on profit. By contrast, banks exist to maximize profits for their shareholders. So even if you have great credit and a high income, you might not qualify for the best rates offered by banks, because banks want to make a profit off people with good credit, too. Credit unions typically focus on people with lower incomes or less-than-stellar credit scores, so they can offer lower rates across the board. If you have less-than-stellar credit, a credit union might be your best option for obtaining a loan at a reasonable interest rate.

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2. You’ll build your creditworthiness

If you’re trying to build credit, credit unions may be able to help. Credit unions report your account activity to the three credit bureaus, just as banks do. So if you have a credit union account with a good payment history, it can help build your creditworthiness. If you only have a credit union account, or if you have a credit union account along with a bank account, it can help you start building your credit. If you have a credit union account along with a bank account, the bank account might be reported to the credit bureaus instead. However, if you only have a credit union account, that account will help you build credit. Credit unions typically report only the positive account activity to the credit bureaus, so if you miss a payment, it could be reported as a negative mark. It’s best to keep your credit union account in good standing, so it can help you build credit.

3. You’ll benefit from easier access to your savings

Credit unions typically offer higher interest rates on savings accounts than banks do. Credit unions make less money on savings accounts, since they’re not focused on maximizing profits. Depending on the credit union, you might earn interest rates of 1% or more. You might even earn a higher interest rate if you’re a member of a credit union that is a part of a larger network of credit unions.

Members cooperative credit union

4. You can enjoy the peace of mind that comes with having an account with no trigger for loss of funds and no fine print

If you have an account at a bank, you might wonder if it’s safe. There are banks that are insured by the Federal Deposit Insurance Corporation, but there are also banks that aren’t. In addition, most banks have language in their account agreements that gives them the right to freeze your funds at any time, if they think you’ve done something wrong. There might also be language in the fine print that gives the bank the right to freeze your funds for any reason. You won’t have to worry about any of these things if you have a credit union account. Credit unions are not-for-profit organizations, so they don’t need to rely on FDIC insurance. They also don’t have any language in their account agreements that gives them the right to freeze your funds.

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Members cooperative credit union

5. Credit unions provide free financial education

Credit unions encourage their members to be financially responsible, and they often provide high-quality financial education programs. Credit unions want their members to succeed financially, so they offer many learning opportunities. You can attend financial education workshops at your local credit union. You can also take advantage of the financial coaching services credit unions offer to help you reach your financial goals. Credit unions also usually have strong online and even mobile app-based financial education offerings. Many credit unions have apps that allow you to deposit paychecks, track your spending, and more.

6. They have a strong focus on member service

Credit unions are incredibly focused on serving their members. That’s because credit unions exist to serve their members, not to make a profit. Credit unions want to help their members succeed financially. You can expect to receive a high level of service when you open an account at a credit union. You’ll probably speak with a live person when you call with a question or a concern. You can expect credit unions to offer many great services, including free online and mobile banking and free automated advice. Credit unions might also offer free checking accounts, savings accounts, and investment products.

Members cooperative credit union

7. Conclusion

Credit unions are not-for-profit financial institutions that exist to serve their members rather than shareholders. Credit unions offer better rates on loans and credit, build your creditworthiness, and have a strong focus on member service. Credit unions provide free financial education and have a strong focus on member service. Credit unions provide free financial education and have a strong focus on member service. They have a strong focus on member service and provide free financial education.

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