Benefits of Credit Unions

July 19, 2010
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If you’re fed up with the nasty tactics most credit card companies use (high fees, unexpectedly raising interest rates or lowering credit limits) to generate revenue, credit unions are here to help.  Credit unions are not-for-profit financial institutions formed by members.  Any profit made by the credit union is directed back to the members via lower interest rates on credit cards and higher interest rates on savings and checking accounts.

Benefits of Credit Unions:

1. Better Rates: Credit unions usually have higher interest rates on savings and checking accounts and lower interest rates on credit cards.  Remember, credit unions are not-for-profit and they don’t waste any money on lobbying or high executive bonuses — unlike regular banks.  Therefore, credit unions can use that savings to offer more attractive products to consumers.

2. Fewer fees: Aren’t you sick and tired of the endless number of fees that most banks and credit card companies charge?  Don’t be surprised to find that most credit unions do without fees of any kind!

3.  It’s Personal: Since credit unions are smaller and formed by members only, it is not uncommon for members to receive face-to-face time with credit union representatives to ensure that each member clearly understands the terms of their credit card or loan.  You’re treated as a valued member of the credit union, as opposed to just another customer, like at a bank.

4.  You’re Money is Safe! The majority of credit unions are insured up to $250,000, by the National Credit Union Administration, similar to the Federal Deposit Insurance Corporation (FDIC), which insures bank accounts.

Use creditcardconnection.org to search for the best credit cards in your area!

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This entry was posted on July 19, 2010 at 9:00 am and is filed under College and Money, Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed.