In the banking world, credit unions are often seen as underdogs. Their larger counterparts—corporate banks— take the spotlight. Credit unions have many advantages, but the public lacks awareness of their value. Misconceptions like “Credit union ATMs are few and far between” and “Credit unions offer limited services” may bias some people against using them entirely.
Debunking these myths may compel more people to investigate the unique advantages of credit unions and encourage them to reconsider their banking options. In this article, you’ll learn about common misconceptions regarding credit unions, and you will also find out how to switch to credit union.
Misconception 1: Access To ATMs Is Limited
One of many common misconceptions surrounding credit unions is that they have limited ATM access. Most people think that joining a credit union will mean sacrificing convenient access to their money. It’s not the case.
In reality, credit unions often belong to large ATM networks, which gives their members access to thousands of ATMs in the US. Many credit unions offer a reimbursement for ATM fees charged by ATMs that are not part of the network, allowing members to access cash even more easily and without additional cost. Members can access ATMs across the country—the same way they can when they work with a bank.
Misconception 2: Fewer Services Offered Compared To Banks
A second common misconception is that banks offer more services than their local credit union. Some individuals think credit unions provide limited products and service options, including mortgages, loans, and online banking. This is not true.
The fact is that credit unions offer products and services similar to or better than those offered by banks. They can provide comprehensive financial services that meet all the needs of their members. They offer everything from checking and savings accounts to loans, credit cards, and investment vehicles. Credit unions are also known to offer personalized services, including tailored financial advice and guidance. This helps members achieve their financial objectives, often in a way that’s more accessible than at a bank.
Debunking Myths – Benefits Of Credit Unions
We’ve already discussed some common misconceptions about credit unions. Let’s now explore their advantages as a banking option.
- Member-Owned Structure: Credit unions, unlike banks, are member-owned cooperatives. This means members can influence how the credit union operates by voting in board member elections. Members can even become board members themselves.
- Community Focus: Credit unions prioritize their members’ needs. They are often involved in local events, help support community projects, and reinvest their earnings to promote economic development.
- Personalized Service: Credit unions pride themselves on their individualized approach to banking. Each member receives one-on-one support and attention. Credit union staff is dedicated to helping you realize financial success.
- Competitive Rates and Fees: Credit unions are known for their competitive interest rates, which they offer on loans, savings, and many other financial products. Also, credit unions usually charge lower fees than traditional banks, which allows members to save money over the long term.
How To Switch To A Credit Union
Now that you understand a few of the advantages of credit unions, it’s time to consider making the switch. Here’s how to start:
- Research Local Credit Unions: Find a credit union that meets your financial needs by researching in your area. Consider factors such as location, membership fees, services, and offerings.
- Membership Eligibility: Check to see if you meet the eligibility requirements for joining your credit union. While some credit cooperatives have specific eligibility requirements, like employment or residence in a particular region, many others have more general membership criteria and allow virtually anyone from the area to join.
- Open an Account: When you’ve selected a credit union, complete the necessary paperwork and deposit the required amount of money. Many credit cooperatives offer the option to start the process online.
Conclusion
By dispelling common myths about credit unions and outlining their unique advantages, our goal is to encourage readers and potential members to rethink their banking decisions and consider the benefits of joining one. Credit unions have a member-centric approach and offer competitive rates as well as personalized service, making them a viable alternative to banks.
