What products and services do local credit unions offer?

 
 

A common misconception in the banking industry is that credit unions do not offer the same loans, account options, and products that a bank provides for its customers.

In reality, credit unions offer their members a wide variety of loans, savings and checking accounts, and products for both personal and business purposes. Not only do credit unions meet the same needs as a bank, but they do so typically at lower rates and with more care and benefits for their members than banks.

In this blog post, we’ll break down the types of products and services credit unions provide when you become a member.

Credit unions provide affordable loans

Credit unions provide loans for everything you could need, from consumer loans to business loans. Their consumer loans break down into two major categories:

  • Non-mortgage loans: cars (most common), credit cards, personal loans, etc.

  • Mortgage loans: home loans, home equity loans, home equity lines of credit (HELOC)

Mortgage Loans

Mortgage loans are commonly used to purchase homes and come in a few varieties. The first of which, ironically, is called a first mortgage loan and comes with either a fixed or variable interest rate. This means that the interest rate adjusts over time based on market trends.

The other variety of mortgage loans are home equity loans that are also offered in two options:

  • Fixed-rate second mortgage loan

  • Adjustable-rate home equity line of credit (HELOC)

Credit unions offer business loans to organizations

Credit unions, like banks, also offer business loans that are used for multiple aspects of a business. These can include operating loans that can be used to purchase inventory or help with temporary cash shortfalls.

Business loans can also help with the following:

  • Business start-ups

  • Expanding your business

  • Commercial real estate purchasing

  • Business credit cards

Credit union member accounts 

Checking and savings accounts are fairly standard when it comes to credit unions and banks. Credit unions do offer interesting bonuses on their savings accounts. One of these bonuses is a Christmas/vacation feature that helps you put money aside for holidays or a trip that you want to help fund.

For example, Fort Sill Federal Credit Union allows its members to open a Christmas Club Account with only $5.00 and make regular deposits leading up to their holiday shopping.

More credit union savings account options

Here’s a list of saving options available at credit unions that some people might not think of:

Credit union member and business products

Credit unions, on top of the normal financial services, also provide member products and business products. Member products are provided by the Credit Union Service Organization (CUSO). The member products include:

  • Insurance

  • Brokerage services

  • Business lending

  • Mortgage lending

The business products that credit unions provide are as follows:

  • Payment processing: the ability to accept credit and debit card transactions

  • Cash management: Cash orders, deposits, and lockboxes. 

The bottom line on banking at a credit union

Banks have the perception of being more convenient than credit unions. But even that is misleading. Credit unions are becoming just as convenient and provide the same services that can be found at a bank.

The kicker is that credit unions provide more detailed services to their members. Credit unions tailor their loans, accounts, and products to meet the needs of their members. That’s the credit union difference.