Why Choose Credit Unions Over Banks?

Ever since currency became the preferred method of acquiring goods and services, there have been banks to store all of your money for you. Today, we go to the bank nearly every week to interact with our funds. We deal with strange fees, policies, and programs without ever giving a second thought to the notion that there could be another solution. Perhaps there could even be a better way to take care of your hard-earned capital. Indeed, credit unions have begun to take the reins of the money management industry, providing customers across the country with a new way to store their money without the same headaches.

The first key to understanding the advantages of credit unions is to understand exactly how they work. Simply put, these associations are nonprofit entities in which the pool of funds from all clients allows the union to provide fair deal loans and other services to its members. The goal is not to feed the bottom line but to create a place where qualified members can make their money work not only for themselves but also for all the other members of their group.

Perhaps one of the greatest features is the empowerment of the customer. Often each member is given voting rights within the company, allowing them to have a say in exactly how the business operates and how funds are distributed in lending procedures. In addition to giving the power back to the people in need of service, this encourages higher levels of customer service. Each individual who enters the building owns a stake in the business, and their opinions can actually affect the directions of the company.

Credit unions are often local businesses, allowing them much more freedom than chains of a major corporate entity. This allows for a much more individually tailored approach without wading through procedures and company policies. While big banks may have a prettier online program, there is no substitute for a truly individualized approach. You are much more likely to get your account and programs tailored specifically to your needs at a nonprofit, customer-focused organization rather than a business designed to be duplicated across the country.

From money market investments to big loans to checking and savings accounts, credit unions can provide all the core programs that a bank would offer. However, instead of having to wade through a sea of red tape and random fees, you are able to quickly make the shared pool of capital work for you. If you are unsatisfied with the way your money has been handled, do your research: consider moving away from tradition and taking a look at what credit unions have to offer.