The benefits of credit unions make them a very good place for your savings account, checking account and even an auto loan. They are a nice alternative to doing business with banks, as banks can be very annoying.
The advantages of credit unions
The first fact about a credit union is that it is owned by its members–hence the name “union.” Bank executives tend to make decisions based on what will be good for their shareholders. In comparison, it’s the customers who own credit unions. This means that decisions usually are made that benefit everyone.
Credit unions are non-profits
This status means that a greater percentage of the union's profits are shared with its owners/customers. Of course, this doesn't mean that the credit union can’t earn a profit. All businesses need to earn money to survive. However, there is a difference. A credit union is not under the same pressure to find ways to make money off its customers, as are banks.
Credit unions generally have lower fees and higher savings rates
Credit unions typically offer free checking accounts with no minimum balance requirements. They also often have no fees. Their interest rates on savings accounts, CDs (certificates of deposit) and some checking accounts are usually better than those offered by banks. Plus, the interest they charge on loans and credit cards is usually lower.
The cons of credit unions
Because credit unions are nonprofits they often don't have the funds necessary to invest in the latest and greatest technology. In fact, some credit union websites look like something out of a bygone time. Of course, technology levels tend to vary from credit union to credit union and some have very full-featured web-based technology.
When you have your accounts at a big, nationwide bank you can travel just about anywhere in the country and find an ATM where you don't have to pay a fee to get cash. In comparison, credit unions often don't have enough capital to a lot of ATMs at convenient locations. However, some do belong to an existing network and you can use its ATMs. You may have to pay a fee at the time but it will be refunded to you.
On the whole, a credit union can be a good choice for many people. Just make sure you understand its pros and cons before you start opening accounts and applying for credit cards.
There are no pros to debt
There are just no pros to being in debt. If you’re heavily in debt it’s all cons. Your creditors may be hassling you or even threatening to garnish your wages. However, there is a program that can help called debt relief. You can learn all about it on the site NationalDebtRelief.com. Go there now to learn how it could help you find relief from your debts.