5 Reasons You Should Choose A Credit Union Over A Bank

The choice between banks and credit unions can be a game-changer for your financial health. While both offer security and essential banking services, credit unions stand out with their member-focused, not-for-profit approach. Dive into the key differences and discover why choosing a credit union might just be the best financial decision you make.

Here are 5 reasons why opting for a credit union could be a smarter move for your wallet.

1. Not-for-Profit Structure

Unlike banks, which aim to maximize profits for their investors, credit unions operate on a not-for-profit basis. This fundamental difference means that credit unions return their earnings to members through better rates and lower fees. Many credit unions offer free checking accounts and don’t demand a minimum balance, making them financially attractive compared to profit-driven banks.

2. Member Empowerment

As a credit union member, you’re not just a customer; you’re part owner. This ownership allows you to vote in elections for the board of directors and have a real say in the institution’s strategic decisions. Your voice matters in a credit union because you’re helping to steer its course, not just storing your money there.

3. Community Investment

Credit unions invest heavily in local communities rather than paying dividends to distant shareholders. They support various local, regional, and national causes and events, from housing initiatives to hospitals and schools. For example, Solarity Credit Union is deeply involved in supporting the Yakima area and the Pacific Northwest, emphasizing community growth and improvement.

4. Greater Flexibility and Support

Credit unions are known for their accommodating nature, especially when it comes to financial products like loans. They often have lower minimum balance requirements for accounts and are more likely to approve loans, even if your credit isn't perfect. Their goal is to help members achieve financial stability and success.

5. Personalized Service

The local focus of credit unions means you get more personalized service. Since they’re smaller and community-based, staff members understand the local economic landscape and are familiar with their members. This intimacy allows for a more personalized banking experience, where staff often know your name and personal story, and can tailor services to better meet your needs.