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Why Credit Unions Are Better Than Banks

The Great Recession created a vacuum in mortgage lending that credit unions are slowly filling. If you are an interested consumer looking for mortgages, auto loans and other financial services, why not join your local credit union instead of banking institutions? A credit union is a non-for-profit cooperative financial institution owned by its members; income from this institution goes back into lower fees, higher rates of return on savings accounts and less stringent loan qualifying requirements for its members.

Credit unions are overseen by the National Credit Union Administration, an independent federal agency with full faith and credit of the U.S. government behind them. Furthermore, many state-chartered credit unions are also federally insured through the National Credit Union Share Insurance Fund.

To become a member of a credit union, one must meet certain criteria as laid out in its charter. Membership often restricts itself to specific groups such as employees of one employer, those living in the same neighborhood or those who share similar interests. Once one fulfills these requirements they can deposit funds into the credit union in exchange for shares that grant ownership rights that allow voting on decisions as well as accessing financial services provided by it.

Credit unions also place great emphasis on financial empowerment, offering resources and workshops to help consumers improve their finances. Classes may include setting a budget, saving for retirement and managing debt effectively. Furthermore, credit unions build relationships with local businesses and national organizations so they can bring exclusive discounts and offers exclusively to their members.

Some partnerships may even provide the credit union with opportunities to earn rewards and points. For instance, Academic Federal Credit Union in New York partners with retailers such as Target and Best Buy in order to provide its members with discounts and cashback on purchases made.

As a credit union member, you can take advantage of several perks, including free checking accounts and virtual credit cards. Some credit unions may even allow free ATM use through their CO-OP Network of thousands of other credit unions nationwide; when away from home you can access your IFCU account through its network of shared branches; these locations can be found throughout Madison County as well as nationwide IFCU also boasts more than 5,400 service centers to meet members needs nationwide!






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