There are more banking options available today than ever before, and some of them are a lot less traditional than the options that you probably become accustomed to using.
Online banking used to mean an online portal to do all of the traditional banking you would have had to do at a branch in the past. Today nothing could be further from the truth. There are legitimate online only banks, online payment processors, and online funding solutions out there that all offer you a lot of unique banking opportunities that might not have existed otherwise.
At the same time, you usually can’t beat taking advantage of everything that a traditional credit union brings to the table – especially if you’re looking for a local bank to handle the bulk of your money management needs. We are going to break down the pros and cons of using a credit union in this quick guide below.
The Pros of Credit Unions
1. For starters, a credit union is owned by the members that have accounts in the credit union itself as opposed to fat cats sitting in some ivory tower hundreds of miles away from you as is the case with national and international banks.
2. This local ownership model provides you with an extra level of safety and security that you wouldn’t have received otherwise, but it also makes sure that you aren’t getting taken advantage of by bankers that have nothing more than their bottom line in mind.
3. Credit unions are also usually a lot more flexible when it comes to the kind of banking options in terms that they provide. Because you are a part owner of this institution just by having an account there they want to make sure that they are doing right by you.
The Cons of Credit Unions
1. At the same time, there are definitely some drawbacks for those that move forward with a credit union – even if there really aren’t all that many deal breakers!
2. For starters, many of the most popular credit unions across the United States are nowhere near as tech savvy or as forward thinking as some of the bigger and more competitive nationally and international banks. You may not get to take advantage of all the different features that acre banks bring to the table when working with a smaller credit union.
3. On top of that, bigger banks have bigger influence in the world of banking and money management. A smalltime credit union just doesn’t carry the same kind of influence as a multinational bank does when it comes to getting the best loan rates, having the most amount of capital for savvy investments that allow them to cut back on fees, etc.