If you’re tired of being treated like a product, you’re not alone. Last year, two million people between the ages of 18 and 35 joined a credit union. In fact, 28% of credit union members are under 35 and 54% of them are under age 50. The tools of technology are making it easier to see the value that credit unions offer.
Don’t just take our word for it. Do your research to see how credit unions compare to for-profit banks. Consider these five categories:
- Ease of service- For-profit banks have earned a reputation for cumbersome customer service and out-of-touch policies. Credit unions, on the other hand, provide easy-to-use services and real, live human beings who answer questions, make recommendations and help you understand the complicated world of finance.
- Lending practices- For-profit banks answer to corporate owners. They expect a predictable, stable rate of return on their investments. This puts a straitjacket on lending and ensures practices never deviate from a predetermined formula. City CU underwriters personally review every loan application and look at the big picture — not just the credit score.
- Online banking- Credit unions provide members with the same convenience services as for-profit banks, like online bill pay, direct deposit and mobile apps. Plus, credit unions are increasingly integrated with e-commerce services, making it easy to send and receive money electronically.
- Educational resources- Corporate banks historically have made a killing by keeping people in the dark about their practices. Credit card companies made it hard to tell exactly how much interest you were being charged. Banks charged overdraft fees without ever telling you they were doing it. Credit unions are not-for-profits that want to make their communities a better place — and that includes financial education. If you need advice about homebuying, making a budget or using credit responsibly, your credit union will be happy to help. Learn about City CU’s FREE financial education here.
- Savings- Credit unions pay back the money they make to their members in the form of dividends. Since their Members are also the people paying for their services, they don’t have much of an incentive to charge an arm and a leg in interest and fees. Credit unions also offer competitive rates on savings accounts and CDs.