When it comes to finances, the first thing that comes to our mind is banks. They have been the most preferred institutions for storing, saving, and transfer of money. Although banks have existed for a long time and people have reasons to opt for a bank, you should certainly consider a better option. The option which we are talking about is credit unions. They are great replacements for banks and even offer much more. In this blog, we are going to give you five reasons why you should opt for credit unions. Here we go:
Credit unions don’t have customers, they have members and that number is limited. The working of the union is focused on ensuring the well-being of its members. As the number of members is less compared to the banks, it’s easier for the unions to take care of them in a better way. You get special treatment when you become a part of the union which is not the case in banks as there are thousands of customers.
One of the major reasons people are looking for an alternative to banks is the service fees. Various types of fees such as loan origination fees, monthly service fees are some of the major sources of income for banks. And, one of the reasons for them being on the higher side. Credit unions are better in that aspect as they charge very little in form of service fees, overdraft fees, and transfer fees. Most of these unions don’t even charge ATM fees as well. This makes credit unions budget-friendly.
Good Interest Rates
Interest rates are a great reason you should opt for a credit union over a bank. Banks are focused on making profits, the interest rates are not consumer-friendly. Credit unions’ main focus is not to earn profits but to serve their members, so their interest rates are much better. You can get lower interest on loans and they even offer higher interest on deposit accounts. So, credit unions are a great choice when it comes to interest rates as well.
Better Handling of Bad Credit
Bad credit is one of the major issues that many people face and this can hurt their life plans such as getting a house, car, or anything else. This is because banks don’t provide loans if you have bad credit. However, it can be possible with credit unions. They are more flexible with bad credit as compared to banks. And, your chances of getting loans increases in credit unions.
Unlike banks where everyone can join and use the services, credit unions have qualification criteria for their members. And, this makes their services focussed on their members. As there are qualification criteria there are lesser members and the unions are exactly as per their requirements. So, you can do some research and find the right credit union for you. If you are someone in Kentucky then Abound Credit Union can be a great option. They have been serving their members for more than 70 years. Once you become a member, you can use the Abound Credit Union Routing Number for your transactions and reap its benefits.
There is a debate going on the effectiveness of banks and with the credit unions proving to be a great alternative, people are choosing them over the banks. And, rightly so, as credit unions cater to the needs of their members much better than the banks. This blog focuses on the advantages that credit unions have over banks and if these are something that matter to you as a customer then you should certainly go for a credit union.
Interesting Related Article:”Credit Unions are Growing in Popularity According to Reports“