Table of Contents:

What is a credit union?

Our Credit Union

Facts about credit unions

Which of the following is a unique feature of credit unions?

Credit Unions vs Banks

Banks vs Credit Unions

Credit Union versus bank 

Credit unions differ from retail banks because they are

What are the disadvantages of credit unions?

What is a major advantage of credit unions?

Credit Union loans for bad credit

Why use a credit union? Why a credit union?

Are Credit Unions better than banks? | Is a bank or credit union better?

Difference between banks and credit unions

Compare banks and credit unions

People's choice credit union

Other ways to get instant loans

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What is a credit union?

A credit union is defined as a nonprofit financial institution that’s owned by the people that use its financial products. The members of any credit union have access to similar products and services as offered by banks, like credit cards, checking and savings accounts, and loans. Members elect a board of directors to manage the credit union to make sure that their best interests are represented.

Credit unions aim to serve members by offering a competitive product with better rates and costs than you may be offered by a for-profit bank. Like traditional banks, credit unions charge interest and account fees, but they reinvest those profits back to the products they offer, whereas banks give these profits to the shareholders.

Since a credit union is owned by members, you’ll get to meet eligibility requirements so as to qualify to open an account, apply for a credit card or a loan. The eligibility requirements differ across credit unions, which we explain more thoroughly below.

Our Credit Union - in brief

          credit union membership

             Credit unions are member-owned. 

                   You are more than a member,
                      You are one of the owners.

 

 

not for profit credit union

 

 

                  Credit Unions are NOT-FOR-PROFIT

Credit unions operate to promote the well-being of their members.

 

 

 

credit unions community

 

 

                                   Community Involvement

         Members often have shared interests and appreciate participating in an institution designed to help other members.

 

 

credit union loans

 

 

                           Cooperative structure 

    One member’s savings becomes another member’s loan.

 

 

 
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Facts about credit unions

Here are several must-know facts about credit unions which will help you to decide whether a bank or credit union to choose:

  • Credit unions aren't FDIC insured.
  • Most deposits are insured through the NCUA.
  • There are certain requirements to meet if you are eager to become a credit union member.
  • Once you’ve got the membership in a credit union, you always stay its member.
  • Every member has the right to vote.
  • Various credit unions may use different terminology.
  • You must have a share account.
  • Free ATMs are generally available for credit union members.
  • Credit unions may share branches.
  • Not all credit unions offer similar terms and conditions.

Which of the following is a unique feature of credit unions?

Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans, and supply a good array of other financial services. But as member-owned and cooperative institutions, credit unions provide a secure place to keep your savings and borrow at reasonable rates.

Credit Unions vs Banks

Credit unions can provide a possibility of lower rates for loans as they don’t depend on outside investors and aim at servicing people and not making a profit first of all. Credit unions' service-driven approach contributes to better loan offers and free checking accounts for all members. But you should keep in mind that credit unions' interest rates on CD's or savings are higher than those of banks. This also leads to some benefits to your budget.

Banks vs Credit Unions

Banks also have some advantages in comparison to credit unions. They offer better rewards programs which is beneficial for those who want to invest money.

You can review Bank of America, Chase Bank, for example, to compare. They provide their clients with bonuses for their credit card usage. Besides, there’re good cashback deals which credit unions can hardly ever boast of. Actually, not many credit unions offer credit cards at all.

Credit Union versus bank

 

Credit Union

Bank

Organization

Not-for-profit

For-profit

Owned by

Its own members

Investors and stockholders

Safety

Safe - $250,000 deposit per account is insured by NCUA

Safe - $250,000 deposit per account is insured by FDIC

Loans and Mortgages rates and fees

Lower rates and fees due to their non-profit, customer-owned nature. On average, CD Rate (APY), with a 12-month term is 2.25%.

Though higher maintenance fees are charged, it may seem a more comfortable option if you prefer direct communication with a lender with no third parties.

 

Physical location

Fewer branches but may provide services online

many more branches including regional

Taxes

Non-taxed

Taxed

Accessibility

Affiliation required

Anyone can join

Service

Service-driven

Profit-driven

Best for

Great customer service and good loans at lower rates

Convenience, a great number of locations

Here are top our picks of credit unions and bank reviews to compare:

Bank of America offers Payday Loans, Title Loans, Personal Installment Loans and other money products at affordable rates with convenient repayment. 

  • MIN Loan Amount: $3000
  • MAX Loan Amount: $250000
  • Terms: 1 - 7 years.
  • Rates and fees: 5% to 29% APR
  • Turnaround Time: 1 - 2 business day
Read Full Review
  • Checking accounts
  • Saving accounts
  • Investing
  • Home Loans
  • Mortgages
  • Auto Loans
  • Line of Credit
  • Credit cards

at least 18 years of age (19 in Alabama or Nebraska)

a U.S. citizen, resident alien or non-resident alien

Pros
  • Automatic savings program available
  • Debit card shopping rewards
  • Access to physical branches
  • Mobile apps available
  • Online applications
  • Low rates
Cons
  • Up to 0.06% APY on savings account; better rates available elsewhere. 

  • Low rates on certificates of deposit. 

  • $35 overdraft fee can be charged up to four times daily.

 

Сhase Bank offers a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing.

Read Full Review
  • Checking Accounts
  • Savings Accounts & CDs
  • Prepaid Card
  • Credit Cards
  • Mortgages
  • Home Equity Line of Credit
  • Car Buying & Loans
  • Planning & Investments
  • Chase Private Client
  • Business Banking
  • Your credit report should be free of any recent bankruptcies, foreclosures, repossessions, mortgage delinquencies, negative public records, charge offs or other credit issues. The minimal credit score is typically 680.
  • The LTV (Loan-to-value ratio) should be less than 80%.
  • Debt-to-income ratio may be acceptable up to 50%.
  • Other required documents may include paystubs, W2s, all pages of your tax return, investment and retirement income, and any other source of income.
Pros
  • With more than 5,100 branches and 16,000 ATMs, Chase’s physical footprint is huge.
  • The bank’s website and mobile app are consistently rated highly by users.
  • While it has monthly service fees on most accounts, avoiding fees are relatively easy -- especially with a direct deposit into its Chase Total Checking.
  • While some banks are condensing and consolidating, Chase has been expanding and adding branches.
  • Chase has been known to reward new customers with bonuses if they come bank at Chase.
Cons
  • Like at most big banks, rates on savings and CDs are very low.
  • High out-of-network ATM fees, with no real ways to sidestep them.
  • It might seem like Chase is everywhere, but it only has branches in 26 states.

 

PenFed provides Loans to consolidate your private and federal student loans as well as Refinance Parent Plus loans, Spouse Loans, and Individual Student Loans. They offer competitive rates allowing individuals and couples to consolidate and refinance their federal and private student loans into a single loan.

  • Refinance Parent Plus loans
  • Spouse Loans
  • Individual Student Loans
  • Cosigners must be a U.S. citizen.

  • Cosigners must be age of majority in your state of residence

  • Cosigners must co-sign on both the loan application and on the promissory note.

  • Cosigners must provide proof of income.

  • Cosigners must be able to meet the cosigner credit requirements.

Pros
  • Physical branches available
  • ATM card offered
  • Access to multiple surcharge-free ATM network
  • Mobile apps available
Cons
  • 0.05% APY on its basic savings account.
  • $1,000 minimum on share certificates is high.
  • Doesn't participate in shared branching.

 

Credit unions differ from retail banks because they are 

Credit unions differ from retail banks because they are owned by their members, with no outer investors. It means one member's savings are another member’s loan.

What are the disadvantages of credit unions?

As we’ve already mentioned plenty of credit unions benefits, there are some drawbacks to pay attention to as well:

  • To use the services of a credit union you must be its member. And to get this membership you are to meet certain requirements which may become a problem for some customers.
  • Credit unions offer fewer products and services than banks do.
  • There are not so many branch locations belonging to credit unions as there are those of banks. This can be a disadvantage for those who prefer to visit a physical location. Banks, on the contrary, operate globally with no dependence on any community.
  • Credit unions use less developed modern technology than banks. This happens because of their smaller budget for new websites or app features.
Not a member of a Credit Union? Consider other Personal Loans

What is a major advantage of credit unions?

Though some cons do exist, we can’t but admit that credit unions have a lot of benefits. The major advantages of credit unions are:

  • Credit unions offer their members lower rates on loans. Credit unions can provide you with cash advance at as low as 9.29% while online Personal Loans or Payday Loans cost over 200 or even 400%. Banks also charge higher rates – about 10.18% at least.
  • If you deposit money into a credit union you may expect higher interest rates which will help you make more money on your savings.
  • Lower fees on accounts and credit cards. Sometimes you may even get a $0 balance transfer fee, while most banks charge 3% to 5% per transfer.
  • You are guaranteed to get individual customer friendly service at any credit union.
To sum it up!
Credit Unions offer better service, lower interest rates on loans and credit cards, and better deposit conditions while banks provide more locations, more products and more modern technology.

Credit Union loans for bad credit

Credit unions are a good choice to get a loan if you need cash fast and have a bad credit score. There are no origination fees, no prepayment penalties, and you are likely to get same-day approval and funding. Credit unions take into account various factors in making loan decisions no matter what your credit rating is.

Read more:
 
 

Why use a credit union? Why a credit union?

Still, most Americans in need of extra money or in search of a loan choose credit unions. The main reason is that large banks don’t often approve of all the customers. And interest and fees are higher at most banks, which looks unaffordable for many borrowers.

Are Credit Unions better than banks?

Still, many customers ask themselves the question “ Is a bank or credit union better?”. Experts say, - there’s no exact answer. It’s necessary to weigh all pros and cons in each situation and make a decision responsibly. If you look for high-quality customer service, higher interest rates on deposits, and lower rates on loans, credit unions are definitely what you need. Need a quick, highly accessible way of treating your money? Choose banks with new technology, ATMs, and branches all over the USA.

Difference between banks and credit unions

  • The main difference between banks and credit unions is the type of organization. Banks are for-profit enterprises, while credit unions are not-for-profit.
  • Credit unions are owned by their members while banks are owned by investors and stockholders.
  • Credit unions aim at providing services at the most favorable term.

That’s why many US residents choose credit unions as an alternative to banks.

Compare banks and credit unions

To make the right choice where to get instant cash or other financial services you need to compare banks and credit unions. It’s recommended to pay attention to:

  1. What is more important for you – account features, customer service, locations, interest, etc.
  2. Review the top contenders offered online, by other customers, or by comparing services. Rely on expert opinion
  3. Consider all pros and cons, choose the bank or credit union that satisfies all your criteria, and apply for their account.

People's choice credit union

Most Americans choose Navy Federal Credit Union as a reliable and accessible way to handle their finances.

Navy Federal Credit Union offers Personal Loans, Auto Loans, Student Loans, Mortgages and many other financial services for its members. 

  • MIN Loan Amount: $250
  • MAX Loan Amount: $50,000
  • Terms: 37 - 60 months
  • Rates and fees: 7.49-18.00% APR
  • Turnaround Time: Same day
Read Full Review
  • Personal Loans
  • Auto Loans
  • Student Loans
  • Mortgages
  • Checking and Debit Cards
  • Savings Accounts
  • Be at least 18 years old
  • Have an active NFCU checking or savings account
  • Have a regular source of income
Pros
  • 18% interest rate cap
  • Accepts co-applicants
  • Loans amounts start at $250
  • 0.5% APR discount for military members
Cons
  • You must be a member to get a loan
  • APR starts at 7.49%
  • Higher rates for longer terms
  • Not all the positive customer reviews

 

Other ways to get instant loans

Besides credit unions, there are other convenient and fast ways to get the necessary cash advance online:

  • $100 - $1,000 short-term unsecured Payday Loans online - available for poor credit with no collateral with same day money deposit;
  • $1,000 - $5,000 Installment Loans for bad credit - unsecured, with affordable scheduled payments;
  • $5,000 - $35,000 Personal Loans for bad credit - longer terms and convenient repayments in installments.

Here are our top picks of the best direct lenders with reviews, rates, amounts, terms, etc:

LendYou will help you get the cash you need when you need it. You can apply for Payday Loans, Installment Loans or Personal Loans, etc. Compare the lenders and get matched with the best one.

  • MIN Loan Amount: $100
  • MAX Loan Amount: $35000
  • Terms: Varied
  • Rates and fees: Starting at 4.99% APR
  • Turnaround Time: 1 business day
  • $100 - $1000 Payday Loans
  • $1000 - $5000 Installment Loans
  • $5000 - $35000 Personal Loans
  • 18 years of age or older
  • U.S. citizenship
  • Valid checking or savings account with direct deposit
  • Minimum regular income of $1,000 per month
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
Pros
  • High up to $15,000 loan amounts. 
  • Minimal restrictions on how you can use your loan.
  • No collateral or guarantor.
  • Bad credit is OK. 
Cons
  • It's not a direct lender, so you'll need to clarify rates and terms with the company you are matched with. 

 

Check Into Cash offers Payday Loans, Title Loans, Personal Installment Loans and other money products at affordable rates with convenient repayment. 

  • MIN Loan Amount: $50
  • MAX Loan Amount: $3000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day
  • Payday Loans
  • Online Payday Loans
  • Title Loans
  • Installment Loans
  • Online Installment Loans
  • Line of Credit
  • Flex Loans
  • Other Services
  • Check Cashing
  • Bill Pay
  • Western Union 
  • U.S. Money Card
  • Cell Phone Top-Ups
  • Sell Us Your Gift Cards For Cash
  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $50.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

Greenlight Cash created an online platform to connect consumers like you with reliable lenders across the country. They partner with a large network of professionals so you get a chance to work with one of them and meet the challenge of improving your financial situation in the most effective way. Once you tap submit, you get one step closer to receiving the funds.

  • Payday Loans
  • Installment Loans
  • Personal Loans
  • be a legal U.S. resident
  • be at least 18 years old
  • have a stable source of income
  • be currently employed
  • have an active bank account
Pros
  • Unrivaled flexibility and accessibility.
  • Predictable monthly payments

  • Quick and simplified borrowing process

  • Any credit is welcome
Cons
  • Not a direct lender.

 

GoGoPaydayLoans offers Payday Loans at affordable rates with convenient repayment terms. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $1000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day

$100 - $1000 Payday Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $100.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

Loan By Phone offers Payday Loans, Installment Loans and Line of Credit.

  • MIN Loan Amount: $100
  • MAX Loan Amount: $3000
  • Terms: Varied
  • Rates and fees: Vary by state
  • Turnaround Time: 1 business day
  • Payday Loans
  • Installment Loans
  • Line of Credit
  • 21 years of age
  • Social Security Number
  • Proof of Income (from your job, pension, welfare, or other source)
  • Valid email address
  • Active checking account (open for at least 90 days)
  • Current cell/home and work phone number
Pros
  • All loan applications and requests are guaranteed confidential and all transactions are governed in accordance with the laws of your state of residence.
  • Flexible repayment.
  • Available in most states.
Сons
  • High interest rates.
  • If you don't pay back on time your data may be sold to third parties.

 

Indyloan.com offers Personal Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $5000
  • Terms: Vary by state
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $5000 are available.