Really big banks have a lot going for their institutions. A tremendous advertising campaign is going to be common with any multibillion dollar financial institution. Gigantic corporations must work at expanding their market share. A tremendous number of customers end up being drawn to these huge institutions. Credit unions, sadly, end up being overlooked. A local credit union might not have the same name value as a major bank, but the smaller institution could be the far better choice for certain customers.
Better Loan Deals
Borrowing money is a major reason why people seek out a local bank. Home mortgages, auto loans, personal loans, and more are needed to facilitate a purchase. Borrowing from a credit union might prove much easier than would be the case with a major bank.
This is not to suggest that credit unions are venues for “last chance lending”. Standards do have to be met in order for the borrower to be approved for a loan. However, thresholds for income and other requirements may not be as stringent. The afforded interest rates to the borrower might prove to be very competitive. This helps attract members. Some might feel the standard bank is the best source for a loan, but making this determination without visiting any credit unions could prove to be a bad idea.
Better Options for Savings
Loan interest rates are not the only means in which customers are attracted. The interest rates on money market and certificates of deposit (CD) accounts could also be quite competitive. Customers to any financial institution are always looking for a good deal. A credit union might pay out a little more in order to draw money away from the larger competitors. The customer looking for a means of making more money with better interest surely will appreciate this tactic.
Free checking accounts and fewer account maintenance fees are common at many credit unions. Few people really like to pay to access their own money. Providing a lower-cost alternative to costly checking and savings accounts is one way credit unions shine.
Better Customer Service
Since credit unions are smaller in scope and size, they are able to craft a personal touch and be more accommodating to clients. Even getting a manager on the phone could prove easier thanks to the personnel structure of credit unions.
Customer service may also be expanded by provided additional help to customers. Credit and financial counseling, for example, could be made available. Larger institutions have less of a need to work harder for clients and deliver more. Consider that another reason to look towards a credit union for banking and financial needs. There are resources available at Windsor Family Credit Union for more information.
