Many people complain that they are less than happy with the services and products provided by their banks, yet they do not take the time to explore the alternatives. One such alternative is to open an account with a credit union – here is why choosing a suitable CU is a good option.
Credit unions offer their products and services only to their members, which involves a different, more personal relationship between account holders and office employees. Credit unions in Highlands Ranch are well-known and appreciated for the excellent customer service that they offer and for the approach that puts the needs and requirements of the customer first.
One of the sources of income for financial institutions is the fees that they charge for their services, such as transfer fees, other transaction fees and cash withdrawal fees. Banks are for-profit organizations therefore tend to charge higher fees than credit unions that are not-for-profit institutions.
More Attractive Interest Rates on Loans
Most credit unions have portfolios that include all the loan types and savings options offered by banks, but the interest rates practiced by CUs are much more favorable, being lower for loans and higher for savings than in the case of banks.
Aspects Related to Credit Scores
Most credit unions are willing to work with people who do not qualify for loans with banks as well as with people who have poor credit history or who have difficulties repaying a loan they already have. Many credit unions also offer educational programs to people who encounter difficulties managing their finances and they also provide counseling to find the financial solution that works best for the customer’s situation.
The deposits made by credit union members are guaranteed up to $250,000 in case the credit union fails, the amount being the same as in the case of banks, but the organization that supervises credit unions and provides the guarantee is the National Credit Union Administration, not the Federal Deposit Insurance Corporation, as it the case with banks.
How to Join a Credit Union
Credit unions are different from banks in terms of who can open an account with them. While almost anyone can open an account with a bank, credit unions have a covenant in which they specify the requirements regarding features and affiliations that their members must share. Called the common bond, the set of requirements might include being a member of a particular community, working for a particular company, living in a particular geographical area.
The process of becoming a member of credit unions in Highlands Ranch is quite simple. The person who wants to become a credit union member needs to provide a proof of identity, a proof of address and some sort of proof regarding the fulfillment of the criteria set forth in the credit union’s covenant. Many credit unions offer the option of opening accounts for children as well, the process requiring proof of ID of the child as well as of the child’s legal guardian or parent as well.