PROS AND CONS OF CREDIT UNIONS

A credit union is an option to a commercial bank, and there are pros and downsides to choosing either of these options. A credit union is distinct from a commercial bank in that it is a non-profit financial institution that distributes dividends to its customers. Banks, on the other hand, are profit-making enterprises that solely pay dividends to stockholders. If you are thinking about joining one, here is a list of pros and cons of credit unions

credit unions

PROS

Membership

You are a partner of a credit union, not only a customer. This qualifies you as a member of the credit union and entitles you to dividends and voting privileges.

Lower Fees

Credit unions also share savings to their consumers by charging cheaper fees than commercial banks. This indicates that, in most cases, a credit union account is less expensive than a standard bank account.

Better Rates

If you apply for a loan from a credit union, you will get cheaper interest rates than if you took out a loan from a typical bank. You can also make extra money on your deposits because they distribute excess funds to consumers by offering higher interest rates on their accounts.

Better Customer Service

A credit union generally provides superior consumer service like that of online casino games than a commercial bank. This is because they are smaller than so many commercial banks. This means that the employees become more acquainted with the consumers and are more inclined to focus on their demands.  Credit unions also place a higher emphasis on benefiting everybody in the community and acknowledge the importance of customer service in this.

CONS

Membership fee

The first drawback of joining a credit union is that you should pay a membership fee. The subscription price, on the other hand, is typically quite inexpensive, ranging between $5 and $25. Many credit unions require minimum deposit conditions to open an account, which differ from one credit union to another.

Insurance

It should be noted that not all credit unions are protected. Others are insured and some are not. You should look into this before putting your funds at risk.

Poor Technology

Banks have the funds to invest in technology since they are profit-making enterprises. Credit unions are non-profit organizations with no revenues to invest in technology advancements. This indicates that if you belong to a credit union, you are unlikely to have access to features such as mobile apps. Most commercial banks offer websites, online banking apps, and apps that allow you to use your smartphone to pay for items while you’re out and about. It can be hard for you to link your credit union account with your online casino platform than it is with a bank.