Whether you want to know your current credit score, protect your credit, get a loan or apply for a credit card. We are here to help you get it done – quickly, correctly and securely.

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough money for emergencies, or to make major purchases such as a home, car, or college education.

Accessing credit has become an important part of our lives. Most creditors rely heavily on your credit reports for granting loans. Knowing what is on your credit reports and how to build and repair your credit is an important step to taking control of your finances.

Wednesday, November 17, 2010

Bank or Credit Union: What's Best For Your Needs?

Credit unions and banks offer practically the exact same services, including savings accounts, checking accounts, certificate of deposits and loans. Several also provide stocks and safe-deposit boxes.

Considering that the services are generally fundamentally the same, will there be any specific rationale to decide on one particular lender regarding the other? Yes, due to the fact those services are certainly not often created equal.

Credit Union Pros 
  • Credit unions are non profit organizations, while banks are for-profit along with the business to generate money for shareholders. A credit union's emphasis is on offering savings and quality services to its members, which usually typically translates into higher interest rates on savings accounts reducing interest rates on bank cards and financial products. In case you do a comparison of loans, money market accounts, certificate of deposits (CDs), and mortgages between credit unions and banks, the credit union rates will win every single time.
  • Since credit unions are non-profit organizations, should they earn greater than it costs them to maintain the organization, the excess earnings are allocated to the members as dividends.
  • The ordinary overdraft fee charged by credit unions is $25; banks charge typically $39 per overdraft. You will find there's related variation in late fees for credit cards.
Credit Union Cons
  • Although you will get the very best rates on your own savings accounts and lowest rates if you take a loan through the credit union, you could possibly discover the credit union charges higher fees for using the ATM. Should you be someone that makes use of the Atm often, the more expensive fees paid may possibly financial impact a person greater than the rewards earned through increased savings rates.
  • To enroll in a credit union, you typically must satisfy selected conditions. Should you not fulfill the membership requirements, it does not make a difference how much better that credit union could be to your financial circumstances in comparison to the local bank - you'll not be permitted to open accounts with the credit union. 
  • Credit unions usually are not insured by the Federal Deposit Insurance Corporation (FDIC), even though they could be insured from the National Credit Union Administration. Make sure you verify when you registered as a member and opening an account.
Bank Pros
  • As long as you're at least 18 years old, nearly all banks will enable you to open a savings account wherever you live or work. Credit unions often require that members meet a wide range of eligibility conditions becoming a new member, despite the fact that it is actually easier to qualify for credit union membership lately. Quite often, you might be eligible according to your workplace, place of residence, or by way of a family member's eligibility. Some credit unions enable you to register with by paying a membership fee.
  •  Money held at banks is insured by the FDIC. 
  • Banks have more branch offices than the typical credit union, which means it may be easier to do your banking unless you choose a small, local institution. Many credit unions have formed networks that make accessing ATMs easier, just as there are banking networks that make it possible for you to access your bank almost around the globe.
Bank Cons
  • Banks are for-profit organizations, this means they create fees and higher interest rates on money they lend so as to turn a more substantial profit.
  • Savings products receive lower interest rates than credit union savings products.

Which option is best for you?

Choosing between a credit union or bank comes down to how you plan to use your financial institution. Visit the banks or credit unions that you're interested in doing business with, and compare the products that you're interested in using. If you need asavings account and a checking account, compare the rates and fees on both to find the the one that offers you the great offer.

1 comment: