The value of membership

I can’t say I really saw this whole crisis coming, but my former fellow credit union loan officers and I did see some of the horrible lending practices performed by banks this past year. I am very surprised the feds didn’t jump in sooner. I literally saw credit reports with no credit except for a mortgage. Who gives a mortgage to somebody with no credit?

And so we turn to credit unions! Most credit unions are much more cautious with their lending practices and are run by volunteer boards, who are elected by the credit union members. That means instead of your lending and banking institution working to make investors and other fat cats happy, your credit union is working to make you happy. The longer you are a member and the more you are involved, the better.

They will tell you all their members receive equal treatment. Wrong! But that’s a good thing. Read on…

With banks, you might get treated well if you have a large deposit or a large loan with them. Credit unions simply want to see that you have a committed involvement and partnership with them. Afterall, credit unions are basically a group of people pooling their money together and then lending from that pool to members of that group. If you contribute to that pool, you’re a valued member of the group. If you borrow from the pool and always pay the loan back as agreed, you’re a valued member.

Simple in concept, right? Right.

Service to the member

Ever go into a bank lobby and feel like a piece of meat? They just jump on you trying to sell you the product of the day. They are like little financial knats. Why? Because many of them are either paid on commission or are required to meet quotas. They have to sell you that 7% cash back checking account with all the fine print that you’ll never catch. Not designed to benefit you, but to make the bank and the investor’s pockets grow.

Now go to a credit union and although they still offer similar products, they listen to you and sell you what you need. All designed to benefit you, the member.

Get involved with your local credit union. You will probably find they even offer higher yields on savings and lower rates on loans.  Take all your savings there and all of your loans. You will be appreciated and you will receive better service. It’s just natural for them.