June 8, 2007
Credit Union or Bank?
Every now and then I see ads about getting a loan from a local credit union. I have always used banks for my loans from the beginning. Car loans, student loans, mortgage, line of credit, you name it. What is the big deal with a credit union?
I of course did a Google on credit unions versus banks. The two are very similar in the sense that they deal with the same thing, money. Credit unions are member based and privately owned while banks anyone can use and they are federally insured. First you would have to become a member of the credit union in order to use its services based on if you’re eligible for membership. Banks don’t care who you are and it is usually easy to open up an account. They both offer similar types of accounts, checking, debit card, even online access for most. With the two being so similar, what is the advantage?
The big difference I found is that a credit union is non profit while banks charge fees and make money for the shareholders. What does a credit union do with money it makes? Members see the benefits in interest and better loan rates. I suppose if I needed a loan of sorts I might consider joining one of these credit unions to see if I could get a better deal.
Question to readers: What do you use, a credit union or bank and why?
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