What’s the difference between a credit union and a big bank?
So what exactly is a credit union? Google defines a credit union as a non profit making money cooperative whose members can borrow from pooled deposits at low interest rates. They really care for the people and have their best interest at heart. A credit union is like. Friends and family saying here take this loan we know you’re good for it. Big banks are for profit and most times they have obligations to their shareholders instead of the people.
Personally I really didn’t know what the difference between a big bank and a credit union until recently when I attended the COOP Think conference.
Now don’t get me wrong, of course I had heard of the term credit union, but to me it always had an exclusive feel to it. I wasn’t sure if I could even join one, unless I knew someone else could invite me in. My mom has had a credit union for years, so when I was looking for a credit union to join I just joined hers.
I’m happy I attended the debunking credit unions myth panel at the COOP Think conference In New York City a few weeks ago because it really gave me a better understanding on the differences between a credit union vs. a bank. Here are my top take aways:
- Credit unions focus on how their investments will benefit their members.
- “Credit unions are crowd sourced, crowd funded peer-to-peer networks.” – Todd Clark, President & CEO, CO-OP Financial Services
- Credit unions are for people, not profits.
- Credit unions are a best kept secret. They’re small so they get to know you. They offer everything that a big bank does, but unfortunately many people feel like they can’t join a credit union. Although there are some credit unions that have certain requirements like being a fire fighter, or have served in the military everyone is eligible to join at least one credit union.
- Usually higher saving rates and lower loan rates.
If you’re interested in joining a credit union here’s how to make a seamless transition from your bank to a credit union (do your research to see which local credit union fits you best, go to www.asmarterchoice.org to find credit unions in your area and use tools like Switch Kit or ClickSWITCH to transfer accounts)]]>
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