A credit union is a type of financial institution or cooperative that offers similar services to a bank. The popularity of these organizations has skyrocketed in the United States over the last decade, prompting a credit union movement. From 2013 to 2020, the number of credit union members rose from 98.4 million to 126.6 million.
A credit union is an excellent place to save money or apply for a loan due to their willingness to work with virtually all members, regardless of their credit rating. At T&I Credit Union, we are people helping people, with a team dedicated to improving the lives of our members and supporting small businesses in our community.
Here are five reasons to love a credit union like ours.
Credit Unions Are Owned By Their Members
The main difference between a credit union and a commercial bank is that it is a cooperative. This means it is owned and operated by its members. Instead of making decisions that please stakeholders, a credit union acts in favor of its members. This allows members of a credit union to have voting rights and to earn dividends.
Credit Unions Are Not-For-Profit
Credit unions are not-for-profit, so they are exempt from paying corporate income tax on their annual earnings. As a credit union is run for its members, this results in more competitive rates for checking accounts, savings accounts, and applying for loans. Many credit unions offer similar services to big banks, such as online banking and credit cards, making them an ideal alternative to banks.
More Competitive Interest Rates
Since a credit union operates without profit as the primary motive, it can offer loans at lower interest rates. Credit unions typically provide more competitive rates than traditional banks, from small auto loans to significant mortgage refinancing. What’s more, credit union members benefit from higher interests in their savings accounts.
According to the National Credit Union Administration, in 2020, credit unions posted higher interest rates on certificates of deposits (CDs) and savings accounts while offering lower interest rates for home and auto loans.
While members are subject to a credit review and approval before lines of credit are offered, credit unions are more flexible than central corporate banks. Most credit unions share a common philosophy, working alongside members to help repair credit issues and educating them on improving their financial status. This is particularly beneficial for young people who corporate banks often marginalize.
Like major national banks, most credit unions offer insurance on accounts up to $250,000. This provides peace of mind that your money is safe at all times. The majority of state-chartered credit unions are covered by the National Credit Union Administration (NCUA) rather than the Federal Deposit Insurance Corporation (FDIC). When searching for a reputable credit union, make sure they are covered by NCUA insurance.
Learn to Love T&I Credit Union
If you’re interested in joining a credit union in the Detroit metro area, consider working with T&I Credit Union. We are committed to providing high-quality financial services, including auto loans, mortgage refinancing, savings and checking accounts, online banking, credit and debit cards.
Some of our additional member services include free credit score analysis, financial tracking services, and our skip a payment policy which allows you to relieve financial stress once per year by postponing a payment. Give us a call today at (248) 588-6688 to talk to a member of our team about joining the T&I Credit Union community.