Are there any negatives to joining a credit union?
I was looking into switching banks so I looked up the best "banks" in my area, and a few credit unions were on top. So I looked into them and they seem too good. The eligibility requirements aren't that strict on these credit unions either. So, what are the negatives? And if there isn't any, why aren't more people joining them?
- Anonymous1 decade agoFavorite Answer
For most consumer purposes, credit unions are much better than banks because they are owned by their members and not by shareholders. That takes away the profit (greed) motive. Credit unions will almost always treat you more fairly, especially when it comes to fees and other service issues.
Some smaller credit unions may not have the huge ATM networks of a large bank, but I find I don't really need to use ATMs. I can get cash back for free anywhere in the country using my debit card at any grocery or drug store. Throw in direct deposit, and the only time I have to visit the credit union in person is to deposit the occasional check I receive in the mail.
A larger credit union is likely to offer free checking, free online billpay, a cooperative system of ATMs that are owned by other credit unions but free to participating credit union members, shared branching, debit cards, credit cards, in short, pretty much everything you would need from a large bank.
I have been a member of a credit union since 1981, and also have worked for several credit unions in that time period. I think you will be much better off at a credit union.
Good luck!Source(s): Retired credit union executive.
- ?Lv 51 decade ago
I love my credit union. The only negatives I have with them is that they are only open from 8-430 monday through friday, so I have to leave work to go in and see them. However they also have online banking so I don't have to go in very often. The only other negative would be that they don't have a ton of ATMs so I'm likely to be charged extra fees for withdrawing money. Other than that, they are wonderful! I recommend them to everyone in my area who's looking to build their credit and get loans.
- 1 decade ago
My experience has been that they can be kind of "sloppy" in terms of customer service and behind the times operationally. My wife and I are members of one, and on average I'm having to make a special trip to a branch at least once a year to fix some problem on our statement, remove a bogus service charge, etc. I don't really see that their interest rates on savings products are really that much better than banks' either, despite what their advertising would have you believe.
On the positive side, they are good and easy to work with for what they were originally created for -- getting loans. As long as you make your payments like you are suppose to -- on time and in full -- you'll usually have a friend for life.