Is a Credit Union Right For Me?

COMMUNITY FIRST Credit Union Love Where You Bank Is a Credit Union Right for Me? Credit Unions Banks A Credit Union is a member-owned, not-for profit organization. Credit Unions usually offer more favorable rates, and are highly member-focused. A Bank is a for-profit corporation. Rates are often higher, as are penalty fees. A bank answers to its corporate investors rather than to its account holders. Credit unions generally have lower loan rates, because their account holders have a say in how the credit union is operated. APR Growth in new loans during the recession 13.1% 3.4% Credit Unions Banks During the financial crisis and recession which began in 2007, Credit unions were able to issue nearly four times more loans to borrowers than were issued by banks. You'll usually find a higher interest rate on savings accounts at a credit union than you will at a bank. INTEREST Average Loan Delinquencies 4.19% 1.54% Credit Unions Banks Between 2008 and 2012, 4 percent of all outstanding bank loans were delinquent with ouerdue payments, versus just 1.54 percent of loans issued by credit unions. Although somne banks have improved in recent years, Credit Unions lead the industry in customer satisfaction ratings. Small Business Loan Growwth 20% -10% O Credit Unions Banks Credit unions and banks both saw a reduction in small business loans. Banks experienced negatiue growth while credit unions were able to stay in the positive. Banks are for-profit and appeal to investors. A Credit Union returns any profits to its members in the form of lower rates and fees. Number of Failures 465 124 Credit Unions Banks A bank failure is the term giuen to the situation where the bank's assets drop to a value that is insufficient to meet the demands of its members and creditors. ©2014 Community First Credit Union http://primeperformance.seablage.com/author/jim-s-miller/ http://www.cuna.org/Research-And-Strategy/DownLoads/combanks_cus/ %24