Many people have been switching from traditional banks to Credit Unions Phoenix lately. There are many reasons for this, but the primary reason most people are making the switch is because there are more benefits to banking with a credit union than banking with a traditional bank. Learning about these benefits will help you decide whether you should switch to a credit union or stick to a bank. Here are some of the most common benefits of credit unions.
Free Checking:
One of the biggest benefits to banking with Credit Unions Phoenix is that credit unions offer free checking accounts. Many banks have begun charging their customers monthly fees for having a checking account, unless they keep a high minimum balance in their account. Credit unions have less fees in general, and their checking accounts are free, which has caused many people to switch, in order to save a small amount of money each month.
They Pay You Higher Interest Rates:
Another benefit to Credit Unions Phoenix is that they generally offer higher interest rates when you keep a certain amount in your savings account, or for other financial products, such as high interest accounts or CDs. Banks are paying extremely low interest rates right now, so people are moving their money to credit unions, where they can get a bit more for the money that they leave in a bank account.
Their Loan Interest Rates are Usually Lower:
The last benefit to using a credit union is that their interest rates are usually much lower if you need to take out a loan through them. So, if you need a home loan or car loan, you can get a better rate with a credit union, compared to a Phoenix bank. However, credit unions have higher lending standards, so fewer people will qualify for loans with them. If you have great credit, you should consider getting a loan with a credit union instead of a bank. However, if your credit is not great, you may not qualify for a loan, and in that case, a bank may be a better option for you.
