The credit union is a money cooperative that allows you to borrow from pooled deposits at low-interest rates. You have to be a member of it to enjoy the benefits of it. Credit unions are owned by their members. You will also be a member of a larger network by being a part of a credit union. You can enjoy some favorable rates and credit cards by joining a credit union. As a credit union gives the profit to its members, you are a stakeholder of it. In a credit union, you are an owner.
When considering credit unions, you need to consider some important factors like lower rates and fees they are offering and outstanding customer service. You also need to select that credit union that is mainly focused on the local community. Nowadays we are mostly dependent on mobile devices. You can choose those credit unions that are offering attractive features like online free bill pay, mobile alerts, and fund transfer.
As people are getting more features with a larger community, they are shifting from banks to credit unions. Many advanced features are available for the members that make financial life easier for people. In a bank, people are just a customer. But in a credit union people can be a stakeholder.
A credit union might have some drawbacks. It tends to have fewer branches and people can enjoy less accessibility to a credit union. Members have to pay a higher APY while using online banking services which is a great downside of using a credit union.