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List of Best Things About Consumer Credit Unions
Maybe you have heard of credit unions maybe you have not. When it comes to banking many people like to deal with credit unions.
Apparently, over 70% of millennials don’t know that the consumer credit unions are not for profits and they are member-owned financial institutions.
And that makes sense, because a lot of people who have bank accounts in general, don’t use the consumer credit union.
In this post, we will learn about the best online consumer credit unions.
1 - How Did Credit Union Start and How Do You Join One?
Just like many other organizations, consumer credit unions also start from the ground up.
They were small and a lot of them were built with local communities which included local members, neighbors, and also with people who worked together. However, throughout the years they have grown.
Today some of the largest consumer credit unions have millions of members. Also, there are still many people out there who think that the only way you can join a credit union is by walking into a physical branch.
However, that is not true anymore. Of course, physical branches for credit unions still exist, however, these days it is more simple, more modern, and you can join credit unions online.
Another great thing about a credit union is that once you are a member, you are always a member.
It may sound a little cultish, however, it is not like that. This is a good type of club, the one that is going to help you get your money right.
Besides all that the general sentiment is that people just love credit unions.
2 - What is a Consumer Credit Union?
Consumer Credit Unions are similar to traditional or national banks in the sense that they both offer financial products to consumers such as checking accounts, savings accounts, credit cards, mortgages, and other types of loans.
3 - What Is The Difference Between A Credit Union And A National Bank?
Credit unions are different than national banks in two ways. One key difference is that a credit union is a non-profit institution.
Since the credit union can operate as a non-profit financial institution, they can offer better things for you such as higher return rates on their savings and sometimes even on their checking accounts.
Another important difference between a credit union and a national bank is that the credit unions are member-focused.
So when you join a credit union, you become a member of that particular consumer credit union and you technically own a piece of the credit union.
National banks on the other hand they are owned by their stockholders. So as a part-owner of the credit union you can have a say in some of the credit union’s decisions.
4 - Is Your Money Safe In a Consumer Credit Union?
This is one of the most common questions people ask. The short and quick answer to that is ‘yes’. Your money is still federally insured by the government.
Like the FDIC that covers national banks for credit unions, it is something called NCUA.
And yes it is federally insured up to a quarter-million dollars just like you are used to.
5 - Where can I Find A Consumer Credit Union Near Me?
We would always recommend that you look into the local credit unions that are physically around you where you live.
You may already be familiar with them. Even if you are not you can always use Google to search for the credit unions near you. You can also click the below link to locate a credit union near you. Find a local credit union.
6 - Are the Consumer Credit Unions Good For Mortgages?
You should definitely check out credit unions when you are shopping for your mortgage. There are a few reasons why you may want to check consumer credit unions for getting a mortgage.
Since credit unions are non-profit institutions, they can be very competitive in giving the best interest rates compared to other traditional banks.
Even on a quarter of a point lower interest can help you get huge savings over the life of that mortgage loan.
Since some of the credit unions are smaller than most of the national banks, they might be able to offer you better service.
Conclusion
Though consumer credit unions may seem one of the options where you can get good returns and low rates on financial products, you may want to check multiple sources when you are shopping for any financial products.
As they say “A dollar saved is more than a dollar earned.”
