Pros and Cons of Credit Unions

Credit unions are cooperative financial institutions, owned and regulated by the people who make use of their services. The members belong to the same community, workplace or church. It is monitored by the government, fully covered by insurance and run by volunteers.

Now, if someone tells you to ditch banks for a change and give credit unions a chance, would you go for it? Read up on the PROS and CONS of credit unions before opening up a new account in one:

PROS OF CREDIT UNIONS:

  1. A credit union is a non-profit organization.

It’s owned by the members, so if you are part of the credit union, you shouldn’t have to worry about the owner of the bank running off to Mexico with your money. All the members control the capital of the organization.

  1. It’s as dependable as your local bank.

You heard it right. Not only do you get a safe and convenient place to store your money, you also reap great interest rates that are usually more competitive than those of the commercial banks. Reasonable loans also await you!

  1. Better service? Check.

A credit union always looks out for the welfare of the members so you’re usually going to receive service better than that of any other financial institution such as the service you get with cobra payday. Remember that a bank has vested interest and is almost always after profit. Credit unions are made up of members who would do everything to keep everyone happy and satisfied.

  1. More services added up!

Since the Great Depression, when credit unions played a huge part in helping out the citizens, this institution of service has gone a long way! Now you can avail yourself of credit and debit cards, checks, car loans, mortgages and other usual banking features.

  1. $1 and you’re in.

For many credit unions, it only takes a dollar to open up an account and benefit from their services. You never thought a dollar could go that far, did you?

CONS:

  1. Limited number of branch offices and fewer ATMs.

It’s not a huge bank, that’s a given, so there aren’t a lot of ATMs for members’ emergency purposes. But there are existing ATMs with no overcharges catered for the credit unions, so this problem has downsized dramatically.

  1. Unreturned cancelled checks.

There are credit unions that just forget about cancelled checks. But then again, so do some banks!

  1. Some local credit unions don’t offer many services.

Not all credit unions double as a one-stop-shop for all your financial needs. Advice: keep an account in a bank as well as in a credit union for different purposes. Just in case.

  1. You’re forced to save and pay.

Now this isn’t exactly a bad thing. As you start out in a credit union, you are obliged to keep depositing money into a savings account. It takes around thirteen weeks of putting money in regularly before you can apply for a loan.

  1. Possible delay in getting your funds.

There are local credit unions that wouldn’t be able to hand out your money on demand, especially large amounts. Some people take this as an advantage because it means they could look for money elsewhere and their savings stay there.

Membership is easy. Join your local credit union, fill out a form and voila! Most applications get approved and then you would have your account in no time. Try credit unions for a change. You’d never know when you’d need that extra money stashed in there.