Credit Unions: A Less Expensive and More Friendly Alternative to Banks

John and Jennifer Hall, new homeowners in Raleigh, North Carolina, made a wise choice: instead of opting for a hazardous mortgage scheme from a bank, which has proven disastrous for so many of their peers, the pair opted for a loan through the North Carolina State Employees’ Credit Union (SECU). You can get additional information at view publisher site

After doing their research, the couple decided that working with a non-profit financial cooperative to purchase their first house would be a preferable option. Apart from cheaper fees and closing expenses, SECU did something the others didn’t: a credit-union employee sat down with the couple and explained the advantages and disadvantages of the various mortgage options. There was no pressure because credit union workers are non-commissioned, allowing the couple to view the credit union as a valued advisor.
“There are a lot of young people who don’t grasp the benefits of going with a co-op,” adds John, who feels that non-profit financial cooperatives assist to hold other financial institutions in check by ensuring citizens are eligible for competitive rates and fees. “Being a member can have a huge impact on your financial situation!”
You Belong Here
Do you have a problem with your bank? You may be fed up with paying exorbitant fees, paying excessive interest rates, and dealing with terrible customer service. And, in light of the present financial crisis, you may find yourself among people with good credit who are having difficulty obtaining a vehicle or home loan as a result of the banking industry’s own stricter lending rules.
You do, however, have options.
Credit unions provide a new option to corporate banks while yet delivering the same services. You can create a bank or savings account, buy a certificate of deposit, and get a loan as a credit union member. Before you buy your first home, certain credit unions can help you invest for your retirement or take financial planning classes.
Credit unions are cooperative enterprises owned by depositors who share a similar interest, such as where they work, live, or attend church. Because credit unions are often smaller and serve a smaller number of individuals, you can expect a more personal relationship between employees and members.
Unlike commercial banks, credit unions return earnings to their members in the form of cheaper fees, better interest rates, and bigger dividends. Since 1983, according to the American Banker/Gallup poll, credit unions have continuously ranked well among consumers in terms of service and customer satisfaction.
Safeguard Your Funds
Consumers have discovered credit unions to be a safe refuge. Because credit unions avoided the hazardous loans and unusual investments that brought so many banks down, they escaped the current financial crisis remarkably unscathed. Credit union members can rest assured that their money is safe.
Credit unions have a strong financial foundation because they follow conservative banking standards such as requiring down deposits and income verification on mortgage loans. While many banks looked for new and exciting ways to make money, credit unions stayed true to their roots.
Many consumers are hesitant to invest their money in a credit union because they feel it isn’t protected by the Federal Deposit Insurance Corporation (FDIC). The opposite could not be further from the truth. Credit union deposits, like those of banks and savings organisations, are insured by the federal government up to $250,000, offering the same level of protection for investor assets as any other financial institution.