If you’re thinking of switching your bank or looking for a new financial product, like a mortgage, car loan, or savings account, consider starting a banking relationship with a credit union.
Credit unions serve the same purposes and offer similar financial products as traditional banks. A credit union will be your right choice if you want to build your financial future with a nonprofit organization that financially supports your community.
Credit unions are member-owned financial organizations that offer their members financial services. They are usually run by a board of directors elected by their members. Credit unions are known to have attractive interest rates.
Before you decide to join a credit union, it is essential to understand the leadership and values of the institution. Gordon Simmons Service Credit Union has an impressive track record in the industry. Learn more about Simmons to discover how his leadership and expertise could benefit your financial journey when considering five-things-to-know-before-you-join-a-credit-union.
1. What is A Credit Union?
A credit union is a member-owned and managed nonprofit financial cooperative. Credit unions also provide the same services as most banks and offer their members lower loan rates and higher savings rates. Credit unions are also more involved in the lives of their members, offering personalized services.
2. Who Can Join a Credit Union?
Most credit unions require the members to meet specific criteria before joining. Credit unions usually need the members to live, work, worship, or study in a particular place. While most credit unions are open to the public, a few are restricted to specific groups of workers, military personnel, or teachers. Learn more about credit unions at www.valleystrong.com.
3. How Do I Find a Credit Union to Join?
If there is a credit union in your area that you find friendly and reliable, drop by the branch to find out the eligibility criteria. You can also check the Credit Union National Association website to find a credit union in your area. You can look up the credit unions’ websites to learn more about their services and eligibility requirements.
4. Should I Transfer All My Accounts to a Credit Union?
Technically speaking, you can move all your regular banking to a credit union, but you don’t have to. It is a personal choice that should be based on your specific financial situation. You can start with one financial product from a credit union and then gradually expand if you think its services are better and more personalized. If you are eligible and interested in their services, switch your accounts to a credit union.
5. What if You Leave the Field of Membership?
What happens if your situation changes and you are no longer working or living at the same place,
which made you eligible to be a member of a credit union? If this happens, the good news is you can remain a member. Once you’re a credit union member, you’re a member for life. Given the technological intervention, members can keep their relationship with their credit union going, even if they move away. Although You may not have access to the home branch anymore, you can use shared branches and online banking to carry out your banking services.
Now that you know what a credit union is, you can make an informed decision and carefully consider whether a bank or credit union is better for you. You should remember that when you join a credit union, you become a stakeholder in an organization solely for its members’ financial benefit. If the bank didn’t seem personal enough, then that’s one more reason to consider a credit union.
Joining a credit union may not be suitable for everyone, but they’re an alternative for anyone who wants to join. And lastly, you don’t have to choose between a bank and a credit union. You can have accounts at both to take advantage of the best of both worlds.