Oftentimes, when you hear the word “banking” you may think of traditional, nation-wide banks. However, the “banking” you’re envisioning can be done with added perks, care, and customization at Eastex Credit Union! If you’re looking to open a new checking or savings account, consider visiting your Eastex Credit Union. Credit unions have many benefits to help you on your financial journey.
Check out these 5 key differences between a credit union and a traditional bank.
Credit Unions are Member Owned
A key difference between banks and credit unions is their organizational status, or tax status. Banks can be privately owned or publicly traded, where credit unions operate as strictly member owned. Because of this, credit union participants are called members, while bank participants are simply customers. When you open an account at a credit union, you receive a share and automatically become a shareholder in the credit union.
Credit Unions are Not-For-Profit Organizations
Another difference between a credit union and a bank is that a bank is a for-profit institution, and a credit union is a not-for-profit institution. This means that banks are in the business of maximizing profit and issue dividends to their stockholders. Credit unions, however, give profits back to the member through lower fees, better rates, and higher yields on savings.
Credit Unions Offer Better Rates and Terms on Loans
Credit unions can be more flexible with loan requirements and aim to help the community they serve by making it easier for members to qualify for a loan. Credit unions are willing to spend extra time with members to help meet their financial needs and can be more willing to consider alternative forms of collateral. This can help those with perfect, average, or less than ideal credit scores. Because of this, credit unions can offer lower interest rates on mortgages, auto loans, and personal loans compared to traditionally larger banks.
Credit Unions Contain Greater Access to Financial Education
Credit unions are committed to helping members achieve their full potential by improving their financial health. Many credit unions offer free financial education resources. These educational resources help members to make sound financial decisions that impact their future.
Credit Unions Provide a More Personal Touch
At a credit union, there is a sense of community than most traditional, larger banks. Oftentimes, if you live, work, and worship in a county, then you are eligible to become a member of your local credit union.
At Eastex Credit Union, we strive to make every member of our community feel valued, welcomed, and heard. We understand that when it comes to personal finance, there is not a “one size fits all.” We take time to understand your specific situation and help you to find the best products and services that meet your needs, wherever you are on your financial journey.