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Jan232013

pros and cons of credit unions

Fox 9 News posted a video clip yesterday about the pros and cons of credit unions. Below are some of the pros and cons taken from the article.

PROS

  • What a credit union IS creates one of its benefits – a credit union is member-owned. For many Americans who are angry at the Big Banking System, there is personal satisfaction of taking money away from the businesses that helped cause our financial crisis, and placing it in a co-op where they have a say it what happens to their money.
  • Banks are interested in making money off their customers – thus you are charged fees and high rates for services. Credit unions are customer-focused, and are interested in providing better services for less. In fact, credit unions live or die based on the quality of service they provide their co-op members.
  • According to Wisebread.com, credit unions non-profit status is another benefit. Non-profits are exempt from federal taxes. That savings, along with the profits made by the credit union, are passed along to the owners/customers. Therefore, credit unions can offer higher interest rates on savings accounts and CDs, and lower rates on loan products – like car loans and mortgages – and credit cards.
  • Credit unions are also able to be more flexible than a typical bank, say the folks at MoneyCrashers.com. You aren't just another number in a long line of credit and loan applications. Big banks use standardized qualifiers to determine whether or not they'll extend you credit. But credit unions can waive those restrictions, or find ways to work around a low credit score or bank balance.
  • Final Score: Credit unions can offer lower loan interest rates, higher savings interest rates, better service, and more flexibility, plus the sense of "sticking it to The Man."

CONS

  • Credit unions are great... if you can actually join one. First, you have to find one in your community that offers the services you need, and second, you have to determine if you are eligible for membership.
    • To qualify for membership at Star Choice Credit Union, all you need to do is live, work, worship, attend school, and/or volunteers within Hennepin County. Employees of a company within the information media, advertising, print and/or related services industry also qualify for membership as well as family of current Star Choice members including your spouse, children, siblings, parents, grandparents, aunts, uncles, nieces and nephews.
  • Once you do join a credit union, you are limited by their fewer locations and services available. Plus, credit unions offer little in the way of convenient ATMS and online services.
    • Star Choice is part of the Shared Branching Network, giving you access to thousands of credit unions across the country to make deposits, withdrawals, transfers and loan payments, just like you are at Star Choice! Click here for a list of surcharge-free ATMs located near you. We also offer many of the same online services as other financial institutions such as online banking, bill pay, mobile banking, and eStatements!

To find a credit union in your area, try researching online at places like ASmarterChoice.org. Or, utilize your social media network. Ask your Friends – you'd be surprised at who is using credit unions!

Get the full story here.

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    Response: richard goozh
    Star Choice Credit Union Blog - Blog - pros and cons of credit unions
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    NFL is truly 1 of the biggest sports in America. It has a major following.
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    Star Choice Credit Union Blog - Blog - pros and cons of credit unions
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    Star Choice Credit Union Blog - Blog - pros and cons of credit unions
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    Star Choice Credit Union Blog - Blog - pros and cons of credit unions
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