Traditional banks have a different way of doing things than credit unions. While there is always an ongoing debate over which form of institution is better to join, the general consensus is that credit unions have obvious advantages over our traditional banks. Why? Well, everything begins with the fact that credit unions are member owned and therefore their lending systems and accounts are governed by people who will directly benefit from the rules and regulations of the credit union. This can spell out much better terms for credit union members.
Unlike traditional banks, credit unions are not-for-profit. Their intentions aren’t to turn a profit from your money but to protect it and help you put it to its best use. With institutions like the Houston credit union, you get lower interest rates, better fee structures for overdrawn accounts, and the ability to take out a lot more loans if you need to. That’s because the lending requirements for loans are much more lax with credit unions. Always keep in mind they’re member owned, so each member in some way has contributed to the goals that the credit union has in mind. Member owned institutions tend to benefit members a lot more than for profit banks.
Despite all the perks about joining a credit union, there are still many things that are misunderstood about them. For one, many people think that it’s impossible to get into credit unions unless you fit into a certain class of people. For example, military-based credit unions may indeed be restricted to members of the military and their families, but most people do have a family member who has served in the military. Other types of credit unions have become much more lax about their memberships and have lowered the bar on joining so that more people can take advantage of the many things that credit unions have to offer.
If you’ve been struggling with the sky high overdraft fees of traditional banks for years and you want to have more flexible terms on borrowing money, credit unions are ideal. And don’t fall for other common myths, either, such as those who say you have to pay dues in a credit union. Every union is going to be different but the majority of credit unions don’t require monthly fees in order for you to be a member. In fact, many traditional banks now are charging fees just for giving you the privilege of depositing your money into them. This has caused stiff resentment on the part of some people because no one wants to have to pay a monthly fee just to store their money somewhere. It feels like throwing money away.
Thanks to more people understanding credit unions these days, more and more people are getting lower interest rates on their overdrafts and getting a greater opportunity to take out loans that they know they can repay. With this greater financial flexibility, everyone is winning out when they join a credit union in today’s world.