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Top 5 Reasons Why Credit Unions are better than Banks

Here are five reasons why you should choose a credit union over a bank:
1. Motives
The main reason why credit unions exist is to serve their members rather than accomplishing the goals of the institution. Members come first in credit unions then the rest follows. On the other hand, banks are formed with the aim of making profits, and they'll do whatever it takes to meet their profit margins.
2. Flexibility
Credit unions tend to have more flexibilty when it comes to lending for loans, credit cards, and even mortgages. Besides that, most credit unions are less strict when it comes to loan eligibility, and they are not selective of one's source of income. Savings accounts, CDs, and bonds in credit unions also yield returns compared to having the same in banks.
3. Structure
For those who are not members of any credit union, you might not be aware that credit unions belong to members and they are responsible for their operations. Once you've made your first deposit, you are granted voting rights, and any surplus income will be reimbursed as dividends. Being a member means that you get financial services at lower rates and participate in decision making.
4. Fee-free accounts
A majority of banks require account holders to maintain a minimum balance which is not the case with credit unions. One of the main reasons why most people are drawn to credit unions is because they offer free checking accounts and no minimum balance requirements to cut down any extra fees.
5. Relationship building is valued
Let's face it, credit unions value members who have been with long enough and they tend to be more lenient when such members want to borrow funds. Besides enjoying lower interest rates, when applying for loans, the terms and conditions are more flexible for such members provided their credit score is high. In case you haven't joined a credit union, take the time to visit one in your local community; you'll be surprised to see a big difference between them and banks.

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