No matter where you live in the nation you likely have a local credit union you can become a member of. They offer a number of benefits over banks because credit unions operate on a non-profit basis. This means that they work to please their members instead of stockholders. They aren’t focused on generating the largest profit possible off their customers, as banks are, but instead offering as much as they can to their customers.
The Balance recently wrote this article about the benefits of joining a credit union. As they point out, you will enjoy lower fees than what any bank will offer, and better interest rates on your savings account and any loans you may take out with them. Their customers can have lower monthly payments on student loans, car loans, and mortgages taken out with them instead of accessing these types of accounts at a traditional bank.
Another great thing about credit unions versus banks is that they are willing to work with you if you have poor or bad credit. They don’t just see you as a number like the big banks do who use algorithms mainly to decide who to lend money to, accepting only people with good to great credit. They employ loan officers who will work with you and determine what they can offer even if your credit history has some issues to it.
There are requirements for joining a credit union. You might have to work in a certain industry or live within a certain geographical area. However, once you join you can continue to be a member of that credit union for life despite changing careers, moving, or other life circumstances.
There are many Credit Union Houston, Texas options to choose from. There are over 10 credit unions in the city of Houston to choose from. Most of these credit unions offered shared ATMs so if you’re a member of one of them you have access to the other credit union’s ATMs with no additional fees or surcharges in play.
Go Banking Rate also offered this guide to the advantages of and disadvantages of joining a credit union. They also point out that credit unions exist to pay dividends to their members instead of shareholders. You also don’t have to worry about your credit union being bought by a bank because that can’t happen due to their nonprofit status.
There are some things to look out for when joining a credit union as this article points out. First, you typically need to pay a small fee to become a member. They usually only have a few branches, sometimes just one. This means if you want to talk about your account(s) in person it’s not all that convenient usually to do so.
The other big thing to look out for is that not every credit union has its deposits insured by the U.S. government. Most are insured through the National Credit Union Administration but not all so this is something you want to make sure the credit union you are considering is a part of.