Choosing the right financial institution is an important part of managing your money. Instead of going with a traditional bank, you may want to consider going with an East Lansing, Michigan credit union. Credit unions provide a lot of benefits including the following:
1. Instead of being owned by stockholders, credit unions are owned by their members. As a result, they are more likely to put the needs of their members first. Banks are for-profit, meaning that their goal is to make money for their stockholders. Credit unions, on the other hand, are nonprofit businesses. That distinction makes a big difference in the way that they treat their members.
2. Credit unions usually charge lower fees. When compared to banks, the fees that are charged by credit unions are usually far lower. Many credit unions offer fee-free checking accounts with no minimum balance requirements. Banks, on the other hand, typically try to tack fees onto everything in order to increase their profits.
3. Credit unions typically payout higher interest rates. As a general rule of thumb, savings accounts offered by credit unions have higher interest rates than those offered by banks. That means that you can earn more interest on your savings. The same holds true for other financial investments like CDs.
4. Getting approved for credit is usually easier at a credit union. Traditional banks have extremely strict lending standards that they are required to adhere to. Credit unions, on the other hand, have a lot more flexibility. If you have any negative items on your credit report, you probably stand a better chance of getting a loan from a credit union than from a bank. The same goes for self-employed individuals or other people who may have a hard time borrowing from a standard bank.
5. Most credit unions contribute to their local communities. Instead of a national bank that is owned by a company in another part of the country, most credit unions are locally owned. They also usually take an active role in the communities where they are located, helping to raise money for important causes and contributing in other ways.
There are a lot of great reasons to choose an East Lansing, Michigan credit union instead of going with a traditional bank. Whether you are interested in opening a checking account, putting away money in savings, or taking out a loan, they offer excellent options that are generally more favorable than those provided by banks.