MADISON, Wis. (2/20/15)—The online personal finance site MoneyTalksNews offered consumers "9 Reasons to Love Credit Unions (And Not Big Banks)" in a recent article.
Motive and structure are among the key reasons why consumers should love credit unions, the article said. Credit unions' cooperative structure means they exist for the best interests of the members. Big banks, on the other hand, exist to turn a profit, and will do whatever it takes to meet their numbers.
A cooperative structure also means credit unions provide better interest rates on loans and savings and charge lower fees than banks.
"Credit unions have lower expenses, so they are able to pass on the savings to their members," the article said. "For instance, many credit unions offer free checking accounts with no minimum balance constraints, but you will often have to pay a fee at the big banks if your funds fall below a certain number or you fail to meet other criteria."
Credit unions are typically more flexible than banks when it comes to lending as well, and are willing to work with consumers with bruised credit. Again, credit unions focus on members and service, the article said.