Credit unions are not-for-profit financial cooperatives that pay dividends to their members. Unlike is the case with other for-profit financial institutions, a credit union works for the collective benefit of its members. From passing on profits to their members to ensuring better customer satisfaction, here are some reasons why you should absolutely join a credit union.

You Are a Shareholder

Profit-making institutions make investments to earn profit for their owners. When you join a credit union, however, you are a part-owner of the enterprise and as such, derive all the benefit that a shareholder gets. All your contributions are real investments because your savings accounts earn higher interest rates.

Being a shareholder-client means you enjoy better customer relationship with your credit union. After all, you are not just a customer helping them make high profits. You are part of the family, and family protect each other.

Cheaper Loans

Credit unions are not meant to exploit those who join them. As such, fees surrounding the management of your account as well as those that have to do with your cards and loan applications are normally lower. The aim of a credit union is to make business smooth for you by ensuring services are affordable and convenient. Loan repayment plans are made cheaper by giving you an extended repayment period. The payment conditions are designed to match your specific needs as a member.

Being a non-profit institution, credit unions enjoy tax breaks, the benefits of which are shared among members of the union, including you. Also, members of a registered credit union enjoy insurance on their deposits. The extra security and added returns on your investments make credit unions the go-to finance houses even in times of financial instability.

Democratic Management

Credit unions are run by a board of directors elected by members. Because you have a say in who gets elected, there is a direct relationship between you and whomever you choose to run your credit union. The board members are there to truly serve you and not to milk you of your investments.

This means at a credit union, you help take decisions to secure your investment, protect your retirement earnings, and ensure your day-to-day financial commitments are maintained.

Serves Your Interest

Credit unions started as cooperatives to serve people within a specific geography or career interest. Their main goal was to better the conditions of their members. While membership rights vary depending on the credit union in question, the same vision remains for the most part.

Credit unions aim to help you achieve the same dreams that most people have: financial security,  rent payment, property acquisition etc. Because you are joining a close-knit family, everyone looks out for the other. You benefit from real-life advice from your colleague members at regular meetings and chats. Word of mouth regarding the best school for your child can go a long way to help you protect your child’s education while saving money.

What It Means for You

If trust is the currency that builds a financial house, a credit union is the vault that keeps that trust. Relationships in a credit union are close and personal. You are treated as a member, and all profits from investments are shared according to your say at meetings. From the moment you enter a credit union, workers treat you with courtesy and respect because you are not just an insignificant person in the hall. You belong.