Mind of Money

July 31, 2018 at 8:54 pm

3 Main Benefits of Joining a Credit Union

Credit Card UnionCredit unions are well known for having lower fees than banks due to its non-profit nature. There are no stockholders to watch over your ROI, and it is mandated to serve its members without the capitalistic end.

Credit unions in Fort Worth, Texas are not as many as banks and other financial institutions, so it would be easier to compare. If you are interested in seeking loan or savings services from one, check out some of its major benefits.

Better interest rates

Apart from cheaper fees, credit unions have better interest rates than banks and financial institutions. Since it is member-owned, it allows for higher rates of return on savings and lower loan interest rates. With no profitability objective, a credit union can direct surplus money to its members through fewer fees, lower rates, and higher dividends.

Easier to join

To join a credit union, you only need to ask a family member, a neighbor, or your employer. The process is straightforward with low minimum balance requirements. Technically, the only standard requirement is that you live in the area.

Credit unions offer the same services as banks. However, they are more accessible on all levels. Since they are small and local, they easily connect with the community.

Democratic and inclusive

Management-wise, credit union members elect their board of directors voluntarily. The members have a voice in who they want to lead. Essentially member-run, they are free to make decisions for everyone’s benefit, not please a group of stockholders or executives. Inclusivity is also apparent in credit unions as family members of union members can join.

Credit unions are socially inclined institutions that operate in a system where profit is not the overriding objective. It serves a community where everyone is close by. If convenience is a factor for saving money or making a loan, a credit union is the right choice.