In the financial world, banks used to be considered as symbols of stability, trustworthiness, and longevity and people used to enter banking relationships without even taking a second glance at credit unions and considering the potential advantages they may have over banks.
However, things have changed. After the economic recession of 2007 and the subsequent collapse of financial markets and institutions, many people are seriously starting to question if banks really serve as the best way to save, store and transfer our money.
Here are some reasons why you should really consider using a credit union.
Accessibility and Friendliness
Relationships with a big bank can often feel sterilized, formal, and even inaccessible. There’s a lack of personal touch, and quite often, it appears that branch managers just don’t hold the authority to make decisions that can help you. In other words, it can feel like the bank doesn’t really care too much about having your business.
Credit unions, on the other hand, can have a much lighter and friendlier atmosphere, and are simply more accessible at every level. Being smaller and local allows them to have a stronger connection with the community they’re
Credit Unions are Co-Ops, not Corporations
A credit union is more of a “financial cooperative” than a financial institution. Instead of making more money from their customers, their primary objective is addressing a common need through a democratically-owned and jointly-controlled enterprise.
Since they’re not gunning for profits and are only trying to cover their operating costs, credit unions are also able to offer much better interest rates to their members. Compared to banks, the interest rates you get from credit unions on loans can be significantly lower. You can even get further discounts if you set up automatic payments.
Credit Unions are typically more willing to Work with Bad Credit
If you have a poor credit score and are finding it difficult to secure a loan from a bank, you’ll find credit unions to be more sympathetic to your situation. The loan officers will work closely with you and strive to find loan terms that are favorable for you. If you need a mortgage loan but have a history of bad credit, a credit union can be the best route to financing your new home.
Tyndall Federal Credit Union is a reliable and regulated non-profit financial institution offering mortgage lending, auto loans and among other services to clients and members in Panama City Florida. Get in touch with them for more information.