Why Credit Unions Are Choosing To Commercial Banks

THE ADVANTAGES AND DISADVANTAGES THAT CREDIT UNIONS ARE POSING TO COMMERCIAL BANKS
The existence of Credit Unions has always been a threat to Commercial Banks as they provide related services such as savings, loans and other financial needs and services to customers. They have always been a better choice than Commercial Banks due to the fact that they do not have strict requirements for services unlike the Commercial Banks. Credit unions provide higher interest rates and lower loan and credit card rates. They also offer relatively low Annual Percentage Rates on mortgages , personal loans, and credit cards. Many credit unions do free withdrawals and electronic transactions with no minimum balance and without a monthly account servicing charge.

For example, membership at a teacher’s Credit Union is limited to professionals in the educational field services provided by community and depositors living there. Credit Unions typically provide better services since they are owned and governed by their membership. They tend to prior it is the needs of their members above all else. Credit Unions offer the same products and services that commercial banks offer. Credit Unions often have added valve benefits such as free financial education, discounted theme park tickets and special member rates for services such as home alarm system, even discounted at online retailers like Barnes &

The National Credit Union Administration (NCUA) is the independent government agency that charters and supervises Credit Unions through regulations that promotes confidence in the national system of cooperative credit, however, when there is failure on the part of the Credit Union, it is difficult for customers to get their deposits back. Credit Unions have come a long way in matching the services you would expect from a bank, not all have been able to offer the wider array of services that Commercial Banks do. For example, if a customer needs a large commercial mortgage loans, Credit Unions are not always able to provisions for this service.
Credit Unions have limited branch locations and ATMs . They only operate most times in one location and even though their smaller community based focus is what attracts many Credit Union customers, there are inconveniences of banking with them.
Other disadvantages include; Credit Unions are limited in their products offerings and services. To be able to get Credit Union services, one must qualify for membership and must pay membership fees to join and sometimes yearly to keep the membership