Pros and cons of using a credit union?

[Elleshoodat]

DH and I have never been a huge fan of the big banks to begin with, but now that BofA is going to start charging to use debit cards, we're exploring our options. We really like the idea of going with a local credit union, but right now that's all it is -- an idea.

For those of you who use a credit union or have looked into using one, what do you see as the pros and cons?

 

[Swimalie]

My husband was a member of one for 30+ years when they decided to start charging a monthly fee. He then closed the account. I like most but check for fees like this one.

 

[sherry7]

I think it depends on the individual credit union. The one I belong to doesn't charge any fees, but the only ATM's are in a very inconvenient location for me. I now only use them for a savings account that I don't need frequent access to.

FYI, many credit unions that were previously reserved for employees of a particular company are now open to the public. For example, my credit union was previously open only to employees of telecommunications companies. It's now open to any resident in our county.

 

[bear_mom]

Really, the only negative to our credit union is the lack of ATM's out of town. In town there are several that are in good locations, but we have to be sure to get cash on our way out of town (not really a big deal).

Every other aspect of banking is a pro.

Emily

 

[MyDizneyBoyz]

I love our credit union! We've been members for close to 15 years now and have never experienced anything negative. They don't have a lot of self-branded ATM's but there are so many free ATM's around at local convenience (Quik Chek, Wawa, etc.) that it doesn't matter. In a pinch, I can always get cash back when I buy something at a store for no fee.

Great loan rates, no fee checking/savings, some other worthwhile perks.

I suppose if you go to an ATM to pull cash out very frequently and need a lot of them around, then a credit union may not be the best bet for you. But that's the only negative that I can think of off the top of my head.

 

[jmrdavis99]

DH and I have never been a huge fan of the big banks to begin with, but now that BofA is going to start charging to use debit cards, we're exploring our options. We really like the idea of going with a local credit union, but right now that's all it is -- an idea.

For those of you who use a credit union or have looked into using one, what do you see as the pros and cons?

I am a member of 2 credit unions. One I have been a member for 30+ years. There are virtually no fees for anything that I do. We have had several car loans and currently have our mortgage with one of them. We use their network of ATMs, so don't ever get hit with fees there. The biggest drawback to both of them are few locations, so they are not always convenient to get to if we need to do business at the CU. Paycheck is autodeposited and loans are autowithdrawn, so that is rare.

We have found that they sometimes have a little flexibility on rates and will usually match it if we find a cheaper rate someplace else.

 

[NCRedding]

We are members of a state wide credit union and love it. Pays higher interest on accounts. I get charged a $1 month fee for my checking while earning interest, but no other charges or fees. My credit card rate is 7.75%. Home loan rates are generally cheaper, with much fewer costs.

Our DD is now out-of-state but still uses our credit union. The only challenge is finding ATMs, but what she generally does is get money back when she makes a purchase (she is in college so she doesn't spend that much).

 

[MyDizneyBoyz]

We have found that they sometimes have a little flexibility on rates and will usually match it if we find a cheaper rate someplace else.

Ditto this - our employee credit union was offering a new car rate of 1.99% and I went to our local credit union, who held our existing car loan at 3.99%, and politely asked if they'd match it. They were so nice about it and happily adjusted our existing loan rate with no fees or hassles.

Customer service tends to be awesome at credit unions, which I think is a big plus. It's not often that I have to actually go into the bank but when I do, everyone is just so pleasant.

 

[jmrdavis99]

duplicate

 

[Claire&TheBoys]

I've banked with the same credit union for practically my entire adult life. I had a "regular" bank account when I was in college, but other than that, I've always used our credit union. Ours only charges an ATM fee if the bank that owns the machine charges one, or it's like $1 extra if you use one out-of-state. I rarely use an ATM for cash, though, so that's not a big deal to me. I can't even remember the last time I used an ATM to get cash. I will get cash back from a purchase, or if we're going on vacation and need to take cash, I go to the branch near me and make a direct withdrawal. There is no minimum balance requirement for checking, and just $25 for savings. We have an auto loan through them and it is so easy to get pre-approved and go shopping with their bank draft. We've had superior service at all branches of our credit union. I would never hesitate to recommend using a credit union based on our experiences.

 

[ceecee]

I love our credit union, it's really no different than a bank. Except car loans are less and they had a person who will negotiate car prices for you! Interest rate was a tad higher with our CDs and money market there than a bank. So far no fees and they are FDIC insured. They have free credit counceling, investment services and a free coin counting machine, great for the Disney change jar!!!

 

[Elleshoodat]

Thanks for the responses, everyone! This is all good stuff. We don't use cash much, so the lack of locations shouldn't be a problem.

 

[Debbie7452]

Our small credit union has a network of "shared branches" where you can go in and do your banking at many convenient locations. Also, If you call them on the phone an actual live person answers!

 

[sookie]

I use DCU (digital federal CU). every CU is different - so find one that works for you. Another popular CU is PenFed.
They are AWESOME. There are no local ATMs. I get outside bank fees refunded to me, and no fees are charged to me by my CU for using an outside ATM. I can use shared CU ATM's as well for free. Basically, everything is free! Loans are uber cheap (I think right now, a car loan - new - 60 months is 1.9%).

there are "credit union service centers" everywhere and I can do business there OR I can go to a CU that is in network. Its wonderful - and I live no where near any of their branches. Still not really a problem. You can also send in your checks using a scanner and have them deposited into your accounts if you are tech savvy.

I still bank with a local bank too, but I would rather have it all at DCU. If they ever started to charge me for ANYTHING at my local bank - I would jump everything over to DCU in a heartbeat. I just haven't had the time or motivation to move everything over to DCU or I would. My local bank is good though and hasn't charged us for anything - so we will stick with it for now.

 

[MrsPete]

I've been a State Employee's Credit Union member since I was 17. My mom was a state employee, and I've always maintained that basic account.

Today I keep my emergency fund and my short-term savings with the credit union. I've also had a couple car loans with the credit union, and my children's savings accounts are at the credit union. We use them because their rates are much better than any other banks.

Last summer I helped my high-school senior daughter open a checking account and debit card at the credit union. She's likely going to attend one of two state universities, and we verified that they both have a credit union ATM on campus /a full-fledged credit union nearby. This checking account costs her $1/month. I don't like her having a fee at all, but $1 is reasonable.

However, I keep my checking at Bank of America. No, I don't have any love for the company, but my husband travels for work, and he needs access to ATMs across the country. Frequently his plans change while he's out of town; for example, last week he expected to be out of town Monday - Friday, but the work didn't go well, and he ended up staying 'til Sunday. So planning ahead for his cash-needs isn't particularly reasonable. And we don't pay any fees for our checking /don't have a debit card. If we used the credit union for checking, we'd pay a fee ($3.50?) every time he used an ATM. That's not something we're willing to do.

 

[Lumiere Lover]

As long as you find a good stable credit union that meets all of your needs, you shouldn't have a problem. Credit Unions typically have higher savings rates, lower loan rates, and low fees. Some charge for ATM transactions after a specific amount each month. I know Florida has had quite a few issues with banks going under recently. Your accounts will be federally insured by CUNA for up to $350,000. Good luck finding a credit union. A google search should help you out.

 

[bankgirl05]

I work for a credit union. all of the pros (and cons) are true.
We did also institute recently a monthly service charge also but people need to understand that the service charge is one of the only ways of earning money with all of the government restrictions on interchange fees etc. (we of course earn money on loans, but lending has slowed and bankruptcies, foreclosures and repossessions/turn ins have risen.) The way our fee works is it is an aggregate average monthly balance fee so we look at your monthly average monthly balance in all of your accounts (checking, savings, mm. cd's christmas club vacation club etc) add them together, average it out for the month and as long as you had an average combined balance of at least $300 you don't get charged. otherwise it is $5.00 a month. Which is still a lot less than most banks charge for a hard minimum daily balance. (most banks require a minimum balance period, no average, you fall below on one day you get charged PERIOD, and usually a lot more than $5.00)

We don't charge foreign ATM fees, so even if you are at a bank that charges, that is thier charge, you don't get hit twice to withdrawal your own money, and our website has an ATM locator that will tell you where you can use your card completely service charge free. We have tons of other free services or low fee services. I would definately look into one in your area. We too, are open to our community (Community Charter) which means as long *** you : live, work, worship, volunteer, or go to school in the 2 counties in which we have branches you can belong!!!

I know from a lending stand point as well, we work with our members to get them a loan that is right for them, not just look at a credit score and say "NO" we look at the whole credit history(someone might have a bad credit score due to medical bills or something similar but has a great history of paying thier car loans/home loans etc), income, value of the car or home, longevity of account with us etc.

 

[Maddies Mama]

I echo everyone else's sentiments. I've had an account at a CU since I was old enough to open one when I got my first job and have always been a member of one until we switched over to USAA a couple of years back. However, we still keep a simple savings account open at whatever the local CU is where we're stationed at so we can still deposit a check every now and again and transfer it to our USAA account. I bought a new car last time my husband deployed and the local CU we had at the time was very willing to work the financing out with me acting for my husband through my POA - something USAA would not do without a huge hassle!

 

[pk1959]

Our CU has HORRIBLE savings rates. Our regular share savings account is earning 0.24% and we have a Money Market savings account that is getting 0.35%. At one point the regular savings account was earing 0.10%. We keep a small amount in the money market account for emergencies and only enough in the regular savings account to cover the bills that are automatically paid each month out of that account. We do have a no fee checking account and are allowed I think 5 free ATM transactions a month. We have been with this credit union for 30+ years.

 

[n2mm]

Been a CU member for 30+ years also. Retired Washington DC Federal employee now. I retired last September and was a little nervous about how it would workout for me, but I gotta say, it's perfect. Our CU is part of a "shared CU branch" where I have a list of shared branches I can go to all over the US. I have 2 a short drive from us....about 25 minutes from our house to Frederick MD. I've been able to do all of my transactions I've needed to do....Of course only about 4 times over the last 12 months, so not too bad. Plus it's near my doctor's office, so I try to coordinate my trips. I have no fees and even my check printing is free. Since my CU has tiers of loyalty, I get alot of other freebie perks. When I retired, I didn't want to have to travel back into Wash. DC to visit the CU, so the shared branches work great for me....the 2 I visit are called COMSTAR. So OP if you plan on moving to a CU, check to see if they also are part of the shared community, where you can use other CU branches and their ATM. I don't really use ATMs, unless it's POS usage. I guess I don't really use alot of cash.