Are you looking for a good alternative to banks? Why don’t you join a credit union? These organizations provide more or less the same services, but they don’t do so for profit. It’s also completely member-owned, so when you sign up, you also become a proprietor of the group.
This gives you a lot of advantages compared to entrusting your money to banks. Read on to learn about some of them.
Lower Interest for Debt and Higher Deposit Rates
These unions have one of the lowest interest charges for different types of credit. For example, cards from these organizations will have an average annual percentage rate of about 11 percent, while those from banks go for about 13.13 percent. These fees may be even lower for loans.
Unlike banks that use these kinds of liabilities to generate profit, these organizations only seek to cover their operating expenses. So, they don’t charge more than what the debt would cost them. These narrow operating margins allow them to give higher return rates for deposit accounts, as their goal is to really maximize what a member receives. They can even provide rebates and discounts.
Less Expensive Service Fees
Credit unions typically have lower service fees than many traditional finance organizations. Loan origination, fund transfer, and overdraft charges are much cheaper than the majority of banks. ATM withdrawals and other utilities often don’t cost anything, either. This can be attributed to the nonprofit model of these groups. So, if you’re tired of being billed for every single move by financial institutions, then you should sign up for these associations instead.
More Lenient Qualifications
When transacting with most banks, it’s rare for people who have a history of bad credit or those with no existing records to successfully get approved for a card or a loan. But, unions usually have more lenient standards of qualification. They’ll normally contact the person applying and schedule a meeting to find out more about their situation.
They’ll first check your history, see if you’ve been paying bills on time, and ask in detail about the status of your debt. They’ll let you explain your situation and why you require a loan. The officer in charge will then work with you to find a fair financing solution for your needs.
Some credit unions even provide additional support for approved loan applicants by giving them access to financial education. You can enroll in programs that will help you manage your money and debt.
These are some reasons for joining these organizations. Ask a local financial advisor about which credit union in Fife Lake, MI, offers the best rates and services.