3 Reasons you Should look into Doing Business with a Credit Union

While there are quite a few credit unions in the country, not a lot of people know the difference between a credit union and a bank, or which one would actually be better for their business. So, before we discuss the ‘why’s’ with doing business with credit unions, let us first understand how and why credit unions are different from banks. And trust me, they have quite a lot of differences.

Credit unions are cooperative, and you will need to choose one that fits your needs.

Cooperatives, if you remember, have people or communities coming together to build something together. Most importantly, since they are made by the locals of the area, it is made to bolster the economy of a particular place.

They are also a non-profit organization that has willing members or participants who pool their money together to give loans to people at low-interest rates (compared to banks).

Already sounds quite excellent and profitable, doesn’t it?

The Three Reasons Credit Unions Might just be what you Need

Well, if you still not convinced, we have three more reasons as to why you should start looking into doing business with a credit union.

1. More personalization

One of the best reasons for you to do business with a credit union, especially if you are a small-time trader, is that these credit unions will give you a lot more personalized care and attention compared to a large and corporatized banking system. It will also be easier for you to secure loans as you are a small business if you approach a credit union near you, instead of a bigger bank. For one, they make finance easier (far less complicated actually). Plus, lower rates of interest are a big deal and a being yes.

They charge only as much interest as is required for them to stay afloat. And that is the best thing about being part of a credit union. Banks on the other hand, often end up making unreasonable demands, charging us higher rates of interest that might often lead to us becoming discouraged from asking them to help with loans.

2. Better customer satisfaction

It has been consistently noted throughout the years that credit unions are a lot better at satisfying their customers than the more traditional and more prominent banking corporations. Loans, be it for housing, education, business, cars, or anything else are quickly sanctioned, and there is no extra hassle.

You do not have to show up with a tremendous amount of collateral, and no additional paperwork will eat up your time. Credit unions are primarily meant to give a boost to the local economy, and the members of the union do just that without causing any trouble or grief to the members of the community.

3. Instant benefits when joining

Like already mentioned earlier, membership into the credit unions is entirely voluntary, and you start getting benefits the moment you decide to join. That means you get quicker sanctions to your loans, you get pools of money at your disposal with very low rates of interest and free checking accounts (Some even offer rewards for using your debit card). In this way even, the people who are otherwise not so well-off can actually afford to start their own business or have a chance to further their education.

Credit unions do not discriminate based on the amount of money you have or the number of assets you own. They give you loans whenever you need it without causing you unnecessary trouble. And if that is not reason enough for you to continue or start doing business with them, then I don’t know what is.

Credit Unions: The more Profitable Option for You

It doesn’t matter whether you are looking for a more affordable mortgage loan, or a better interest rate on your savings account, a credit union is there to help.

Credit unions are actually better for people, especially the middle-class of the country who want to better their social and financial standing.

These credit unions are actually created to help advance the community. And they do just that. In fact, most of these credit unions have as much new and improved technology as some of the biggest banking corporations in the world. So in case you are thinking that it isn’t safe to take loans from these unions, think again.

It might actually be much better for you to end up taking loans from these credit unions instead, especially if high rates of interest are your biggest hindrance in trying to achieve something that you really want.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.