How many of you use credit unions? One just opened up by the house. Not sure what they do.

Been using Commonwealth CU for 23+ years now. I like it and seem to be better to deal with than most banks. CU's I believe are usually "owned" by the membership...kind of like a co-op.

About all I know of them is that they're not-for-profit entities, so the thinking is that they have their customers' best interest in mind rather than profits.

If you're not with a credit union, you should be!

The main differences between banks and credit unions are:

 

- Credit Unions are not-for-profit. Banks are for-profit.

- Credit Union members are owners. They get a say/vote in how it is operated

- The Board of Directors at a bank are paid positions. At a Credit Union they are volunteer positions.

Been using Commonwealth CU for 23+ years now. I like it and seem to be better to deal with than most banks. CU's I believe are usually "owned" by the membership...kind of like a co-op.

 

Commonwealth was just named "Best In-State Credit Union" for Kentucky by Forbes.

About all I know of them is that they're not-for-profit entities, so the thinking is that they have their customers' best interest in mind rather than profits.

 

Correct. CU's typically return what would be "profit" at a bank to the members by way of better products and lower rates.

If you're not with a credit union, you should be!

 

I've looked into it...but I stuck with banks because they offer significantly better rates on both my car loan and home loan. The credit unions I've talked to couldn't come close to touching a bank's loan rates. And those bank rates are made even better if you have a primary checking account with their bank for them to do direct withdrawals from.

I've looked into it...but I stuck with banks because they offer significantly better rates on both my car loan and home loan. The credit unions I've talked to couldn't come close to touching a bank's loan rates. And those bank rates are made even better if you have a primary checking account with their bank for them to do direct withdrawals from.

 

CU's won't ALWAYS have better rates than a bank (mostly due to the size of the organizations), but they can usually be competitive. And if they aren't competitive in rates, credit unions ALWAYS have less fees and generally better perks.

 

Next time you're considering, hit me up.

The main differences between banks and credit unions are:

 

- Credit Unions are not-for-profit. Banks are for-profit.

- Credit Union members are owners. They get a say/vote in how it is operated

- The Board of Directors at a bank are paid positions. At a Credit Union they are volunteer positions.

 

Are these points positives for the banks or for the credit unions?

 

Is having a volunteer board of directors a positive?

Are these points positives for the banks or for the credit unions?

 

Is having a volunteer board of directors a positive?

 

I guess it's how you look at it.

 

A paid BOD is more likely to make decisions that will put more money in their own pockets, where as a volunteer BOD doesn't benefit from the decisions they may make.

I left the big banks for a local credit union about ten years ago and couldn't be happier. I can't provide solid proof that they have the customers best I terests in mind but it sure seems that way. Getting a loan is as simple as walking in and walking out about 30 minutes later with cash or a check in hand. My experience with big banks typically involved a much more drawn out process that could take days to complete.

 

Also my debit card was compromised a few months ago and there were some charges that came out of my account from restaurants in Las Vegas. They noticed that my card was being used here in Ashland as well as Las Vegas on the same day and had me come in and fill out a fraud packet, once I did that they credited my account immediately. I imagine that process would have been a hastle at one of the big banks.

Are Credit Unions insured like banks are with FDIC or its equivalent?

I don't like having all my eggs in one basket. It's a great way to lose all your eggs if the basket gets stolen, so I belong to 2 credit unions and have an account at a bank.

Are Credit Unions insured like banks are with FDIC or its equivalent?

 

Most are insured by the NCUA.