Top 10 Reasons to Use a Credit Union Instead of a Bank

What’s the difference between a credit union and a bank? Both are financial institutions, but a bank is a for-profit institution, while a credit union is a not for profit owned by its members. You can complete many of the same financial services at both, so why would you choose a credit union? There are many benefits to credit union membership.

1. Credit Unions Are Owned and Operated by the Members

The whole reason a credit union exists is to help its members. Instead of going to outside stockholders like a bank, profits go back to the credit union members in the form of reduced fees, loan rates, or even dividends.

2. They Offer Free Checking Accounts

More than 80 percent of credit unions offer free checking accounts, while only about 50 percent of banks do. Since this is the main financial account for most people, free checking accounts are a benefit that nearly everyone can appreciate.

3. Credit Unions Strive for Personal Relationships with Members

Since credit union members are also owners, personal relationships are a high priority. Don’t be surprised if the employees at your credit union greet you by name when you walk through the door! You’re the boss, after all.

4. Credit Union Loans Have Lower Interest Rates

When it comes to loans, credit union rates are often lower than banks. This is another perk of membership. Plus, it gives you one more option when shopping for financing for your mortgage, car loan, or other loans.

5. Little to No ATM Fees

ATM fees from a bank can really add up. But with a credit union account, ATM fees are usually minimal or free. Credit unions are generally connected with a huge network of ATM locations where credit union members can conveniently access their accounts at little to no charge.

6. Credit Unions Have Great Savings Rates

You may be wondering, “Do credit unions offer better rates?” and the answer is YES! In addition to lower loan rates, credit union rates for savings accounts are often higher than at banks. This is another benefit to being a member/owner—the profits come back to the members instead of dividends to stockholders.

7. They Make it Easier to Get Credit

Credit unions aren’t required to follow the same loan requirements as banks, so they have more flexibility in deciding how they lend money. This can make it easier for a credit union member to get credit.

8. Credit Unions Are Invested in the Local Community

Unlike big national banks, credit unions are operated by people in your community. This makes community involvement very important, and something that most credit unions are very proud of. Credit unions frequently donate to local charities, sponsor youth sports, and participate in community events.

9. They Offer Small-Business Support

If you’re a small business owner, a credit union can be a great resource for you. Because credit unions know the community so well, they get to know small business owners and understand their financial needs.

10. Joining a Credit Union is Easy!

Most credit unions have simple requirements to be eligible for membership. It can be based on the area you live, your place of employment, or other factors. If you’re ready to join a credit union, you might be surprised how easy it is!

Interested in Joining a Credit Union in Lee’s Summit? Learn About Missouri Central Credit Union Today!

If you’re looking for the best credit union and you live in Lee’s Summit, Blue Springs, Independence, Kansas City, or the surrounding communities, Missouri Central Credit Union could be a perfect option for you. Give us a call at 816-246-0002 for more information about how easy it is to become a member/owner. There are no fees to join, just open a savings account with as little as $1 and start reaping all the benefits of being a credit union member!