You’ve probably heard a lot about credit unions recently. These days, lots of people are moving away from big banks and choosing credit unions instead. So, why are so many people making this shift? And what exactly do credit unions do that makes them so different from banks? Let’s take a closer look and find out.
Credit Unions Do What Banks Do
In a lot of ways, credit unions are very similar to banks. You can do a lot of the same things at a credit union that you could do at your regular bank. For example, you can open a checking account with a credit union. With a credit union checking account, you get all the same features that you’d get with a bank, including a checkbook and a debit card. You can also get a savings account and apply for loans.
Credit Unions Give Back
If credit unions are so much like banks, then why aren’t they just called “banks”? Well, credit unions do have some differences from conventional banks. The biggest one of these differences is that credit unions are nonprofit organizations, while banks are for-profit businesses. Unlike banks, credit unions are owned by their members. While a bank owner may only look at the bottom line, a credit union’s leadership will look for ways to benefit the members. This structure comes with a lot of benefits. For example, many small business owners find it easier to get a loan from a credit union than from a major bank. Credit unions support the community, too. They may sponsor local sports teams, host financial literacy classes, and do other things to give back.
Credit Unions Support Common Bonds
Credit unions do have certain qualifications for membership, and all credit unions are different. Some credit unions require its members to live in a specific area. Some let members’ relatives join. Others have different specifications. This fact scares some people away from credit unions, but with a bit of research, you can find the credit union that works for you.
How to Find a Credit Union
At BundleFi, we connect businesses with local banks and community financial institutions. You just let us know what you need from your bank, and we’ll show you the perfect one. Contact BundleFi today to start supporting your community.