Credit Unions can be a Smart Choice

Credit Unions can be a Smart Choice

Credit Unions can be a Smart Choice

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A Credit Union is a not for profit financial institution owned and operated by members with a common interest for the purpose of promoting thrift, competitive credit and interest rates and other financial services.  Credit Unions can be a smart choice.  What I say here applies to Community Banks as well.

Are Credit Unions as Safe as Banks?

If you’re worried about FDIC protection, the vast majority of credit unions belong to the National Credit Union Share Insurance Fund (NCUSIF) which insures deposits up to $250,000.00.  Although credit unions don’t have as many ATMs as big banks,  most credit unions are joined in a big network to provide ATMs at many outlets without extra fees.  That being said, if you use an ATM outside of the system the total fee for a transaction may approach as much as $5.00.

Credit Unions usually pay depositors higher interest rates for savings and charge lower interest rates for loans.  With business lending by banks shrinking, such lending is expanding by credit unions.  It’s hard to think of any reasons not to use Credit Unions.

Credit Unions can be a Smart Choice for Automobiles

Credit Unions are a particularly good choice for auto loans.  The national average for a 36 month used car loan from credit unions is only 3.88% vs. 5.61% for banks…a difference of 1.73%.  For a new car loan of 60 months credit unions nationally average 3.91% vs. 5.22% for banks… a difference of 1.31%!

Must I Join a Credit Union to Use It?

Credit Unions are designed to serve a particular population.  Most people can find one they fit into in their area. Try the site to help locate one. This may involve joining a nonprofit organization. It doesn’t cost anything to go in and ask if you are eligible to join.  See if your alma mater or Church has a credit union if you feel stuck on this point.

Military Credit Unions are Great for Veterans

If you have an active military background you would be well advised to join a military credit union.  They know your particular needs…even to the point sometimes of getting a pay check a few days early when needed.  They make it very easy to become a first time home owner.  You have served your country and you are entitled to some special privileges for that.  Mortgages are often 100 percent financed.  Closing cost reimbursement of up to $2500.00 may be offered.

Whether you want to make your own statement regarding the Banking fiascos or you just want better rates Credit Unions can be a Smart Choice.  With more lenient standards for your credit cards, home and auto loans, it’s worth looking into credit unions in your area.  Credit Unions can be a Smart Choice.

Community development institutions or Community banks are there to promote justice and they as well as credit unions can be a smart choice.


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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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