A credit union is a nonprofit-making money cooperative whose members can borrow from pooled deposits at low-interest rates. Credit unions offer many benefits to their members. Which is the reason why most individuals looking for a company to borrow from choosing them. One benefit is that they offer their members with personal loans, mortgages, home equity loans, credit cards and auto loans at a lower rate than banks. While their savings, checking, money market, and CD’s have higher rates. This is because credit unions are not focused on driving up profits but on serving their members. In this article, we will tackle the things you should remember when looking for a credit union.
You should research more about credit unions. Be equipped with the knowledge of the things they can and cannot offer you.
Look for a credit union that is always willing to attend to your concerns. You can check out the comments and review section from their website whether they have responded to customer queries and even complaints.
Find out their requirements for member eligibility. It may vary from the community you live in, your employer, occupation, religious institution, or membership to a fraternal organization. You should do this right from the early stage of looking for a credit union for you to save time from applying to credit unions you are not eligible. A tip is that you may be eligible to join a credit union if your spouse or parent is a member at a specific union.
Look for a one-stop type of credit union. The credit union you choose should provide you with auto loans, features a good savings program, offer financial counseling, issues credit and debit cards and can offer you home lending services.
You should find it convenient to transact with the credit union. You should look for a credit union that provides ATM services or a branch network that is local to your area. With a shared branch network, you can go to any of the member credit union locations to access your account. While having ATM services allows you to withdraw or deposit money at different ATMs even if they aren’t specific to your credit union. They should also have online and mobile banking services.
Find an insured credit union. Thus, you will be ensured that you will be paid back in case the credit union goes bankrupt. You can find out if they have insurance by asking your national government that governs them or ask the credit union itself.
Ask various credit unions of their interest rates. If you do this, you can easily shortlist those that can offer you the best loan at a lower rate.
Seek help from your co-workers, acquaintances, friends, and family. Seeking advice from them allows you to enjoy the benefits they have experienced with a particular credit union.
Ask them about their complete fee schedule. The fees may differ from bill payment fees, account opening fee, check writing fee, minimum balance fees, online or mobile banking fees, transfer fees, overdraft fees, monthly maintenance fees, etc.