10 Myths about Credit Unions
How much do you know about credit unions? Test yourself on these 10 myths:
Myth #1: You must meet strict eligibility requirements.
Fact: While credit unions do require that members meet certain requirements to satisfy a common bond, many of these are broad, and few of them truly limit membership. CCU requires a $25 deposit in your share account as a member.
Myth #2: Getting to the ATM is difficult because my branch isn’t nearby.
Fact: With up to 65,000 ATMs available through various networks, availability is not an issue.
Myth #3: Changing my banking from a traditional bank to a credit union will be a hassle.
Fact: Actually, it’s very easy and credit unions offer the same services as banks, including automatic bill payments and direct deposit. Most services will transition easily and go uninterrupted.
Myth #4: With all the fancy advertising, banks must have more money than credit unions.
Fact: While this may be true, it’s because credit unions are not-for-profit organizations. The money saved is rolled back into services for members or distributed back to members as dividends.
Myth #5: Credit unions don’t offer reward programs.
Fact: Many credit unions do offer reward programs on credit and debit cards. For those that don’t, take a look at the fees that are associated with the various accounts. At a credit union, you’ll save on fees. Do your bank rewards outweigh the fees you’re paying on each account?
Myth #6: Credit unions aren’t very tech-savvy.
Fact: Credit unions offer many digital options, including online and mobile banking, e-statements, mobile check deposits, Bill Pay and much more. According to a study by CFI Group, bank customers rated their satisfaction at 86 out of 100 in online and mobile banking versus 90 out of 100 among credit union members.
Myth #7: Credit unions are just like banks.
Fact: Credit unions are not just like banks. Members own a piece of the organization and own a vote in determining how the credit union is managed. Credit unions also return all earnings back to members with their low fees and great dividend rates.
Myth #8: Credit unions have an unfair advantage over banks because they don’t pay taxes.
Fact: Actually, credit unions do pay taxes. As a not-for-profit, member-owned financial cooperative, there are some taxes that credit unions don’t pay. Those “unfair advantages,” of course, are passed on to members.
Myth #9: Credit unions are not regulated.
Fact: Credit unions are held to the same laws and regulations as banks. In fact, credit unions face more restrictions on the investments and loans they make.
Myth #10: Credit unions are good places to save money, but that’s about it.
Fact: Credit unions offer consumer loans, debit and credit card services, online banking and bill pay, checking accounts, retirement investments, mortgages, car loans and more. They are a great place to take care of all your banking needs.