What To Consider When Choosing a Credit Union for Your Needs

A credit union account is a wonderful way to save money in a secure location. Unlike banks, credit unions only serve specific people depending on the credit union’s field of membership. In turn, this exclusivity makes the services more tailored to the members.

Before you join one, there are a few things to consider when choosing a credit union. You will want to understand the membership requirements, services offered, divided rates, interest rates, and transparency. Keep reading to learn what to look for to ensure you open an account in the ideal credit union.

Membership Requirements

Every credit union is different, and they all have specific requirements that individuals must meet to become a member. Most credit unions require you to live within their service area or work at a specific organization.

If you want to join a specific credit union, review their website to learn more about eligibility. You’ll often find this information on the home page or a page dedicated to membership.

Services Offered

Many individuals have credit union accounts because of all the services offered. Some credit unions have ATMS and online banking options so that you can easily monitor your account. Also, check if the financial institution provides credit cards and allows you to take out loans.

Likewise, the best credit unions can help further your financial education with online and in-person resources. By better understanding finance, you can discover the best ways of budgeting and saving money.

Dividend Rates

One crucial benefit of credit unions is that many offer dividend rates for money within savings or other specific account types. Usually, the dividend rate depends on the type of account and the amount of money you have in it.

Interest Rates

Credit unions also allow you to take out loans for major purchases such as a new car or home. As you look for a financial institution to join, you should closely evaluate their interest rates on loans based on the amount of money you take out. Avoid credit unions with high-interest rates, as this can make it harder to repay a loan, and missed payments can negatively impact your credit score.

Transparency

The final thing to consider when choosing a credit union is how reputable each option appears. Read through online reviews and inspect the institution’s website to check for transparency. Pay extra attention to what people say about customer service, as you don’t want to put your money in an institution that mistreats its members.

A credit union should always be secure and insure money up to a set amount. Insuring its members’ money protects their financial security in the event of economic failure.

Join Us

Shell Western is a Costa County federal credit union, and we offer wonderful dividend rates, loan interest, and key financial services. Most importantly, we’re always happy to teach our members about the importance of financial freedom. Join our credit union today and start saving money!