Credit Union Services: Understand Your Options

Credit union services are similar to what you can find at a large bank, but with a different protocol. While most people are familiar with what banks have to offer, many overlook the credit union. Credit unions are usually small, local businesses that value service. If you are looking for an alternative to your bank, consider the option of a credit union. 

Banking Services

Federal credit union services offer the same services as large banks. You can get free checking accounts, savings accounts, debit cards, credit cards and loans. Any kind of programs that you can find at a bank, you also be available at a credit union. However, there is one key difference: a credit union is a non-profit organization. This allows the credit union to conduct their business a little bit differently.

Each person that holds an account in the credit union is like a shareholder. Any profit that the credit union makes will be distributed in the form of a dividend directly into your account.

Credit unions make you feel like a part of the team instead of just another number. As a result, you can also expect cheaper fees associated with insufficient funds and wire transfers.

Short-Term Loans

Credit union loans are typically a little different than you can get from a bank. Short-term loans are the big money maker for credit unions. They use account holder money to do many short term loans and earn interest. Since they are usually confined to a certain geographic area, they are usually big players in the community. They will loan money to start businesses, for small purchases and car loans. Banks will often not even consider small short term loans where credit unions thrive.

Mortgages

Credit unions are also very active mortgage lenders. While their emphasis is on short-term loans, they have many different kinds of mortgages as well. The rates you receive on a credit union mortgage will usually be lower than what a bank will offer.

With the savings they receive from taxes, they can afford to pass them onto you in lower rates and fees for borrowers. If you need a mortgage, a credit union should be one of the first places you shop.


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