Benefits of a Credit Union

Post date: August 6, 2023 8:30 AM

The Benefits of Joining a Local Credit Union

When it comes to managing your finances, choosing the right financial institution can make a significant difference in your financial well-being. While traditional banks have long been the go-to option, local credit unions have emerged as a compelling alternative for many individuals and families. I worked at one of the big banks as a personal banker. I did not last long, because I knew right away that the banker's life was not for me. Any financial institution's goal is to get all of its customers' debts and assets under its roof.

The question is are they providing enough value to justify it, and what practices are they engaging in to make that happen? Some banks are charging excessive fees or were caught opening fraudulent accounts. These are giant red flags! In this blog post, we will explore the numerous benefits of joining a local credit union and why it might be the perfect fit for your financial needs as opposed to bigger traditional banks.

1. Personalized Service and Community Focus

Unlike large banks, local credit unions are member-owned financial cooperatives. This unique structure means they are more invested in their members' financial success and well-being. Credit unions prioritize personalized service and take the time to understand their members' needs. As community-focused institutions, they often support local initiatives, charities, and community events, contributing to the overall welfare of the area they serve.

2. Lower Fees and Better Interest Rates

One of the most appealing aspects of credit unions is their commitment to providing better deals to their members. Credit unions typically offer lower fees and better interest rates on loans, credit cards, and savings accounts compared to traditional banks. This translates to cost savings for you, allowing your money to work harder and grow faster.

3. Member Ownership and Voting Rights

As a member-owner of a credit union, you have a say in how the credit union operates. Each member has an equal vote, regardless of the amount of money they have deposited. This democratic structure ensures that members' interests come first, and decisions are made with their best interests in mind.

4. Enhanced Customer Experience

Credit unions are known for their friendly and welcoming atmosphere. As a member, you are more than just an account number. Credit union staff often build meaningful relationships with members, understanding their financial goals and providing personalized solutions to help achieve them. This focus on individual needs fosters a positive customer experience.

5. Access to Financial Education

Credit unions are committed to empowering their members with financial knowledge. Many credit unions offer financial education programs, workshops, and resources to help members make informed decisions about money management, budgeting, and saving for the future.

6. Flexible Lending Criteria

Credit unions are more willing to work with members who may not meet the stringent lending criteria of larger banks. If you have a less-than-perfect credit history or limited credit, a credit union may be more open to extending credit to you based on your relationship and trustworthiness.

7. NCUA Insurance Protection

Similar to FDIC protection for banks, the National Credit Union Administration (NCUA) insures credit union deposits up to $250,000 per account. This federal insurance provides peace of mind, knowing that your money is safe and secure.


Joining a local credit union offers a host of benefits that promote financial well-being and community engagement. From personalized service and lower fees to member ownership and financial education, credit unions prioritize the interests of their members above all else. If you're looking for a financial institution that values your relationship and strives to help you achieve your financial goals, a local credit union could be the perfect fit. Take the step towards becoming a member of your local credit union and experience the difference it can make in your financial life.

In addition to my online bank accounts, I also use a local credit union for cash and other transactions. Contact me for a credit union referral that as of this posting will reward us each with $50 when you open your account.

 Ask me how - Contact me now for your free coaching evaluation! 

After watching his Netflix series, I read I Will Teach You to B Rich by Ramit Sethi and learned that I already implemented his automation techniques in my money management. Personal finance works best when it's automated and boring. Setting up automation may not be enough. You might need coaching to stay on track or to get out of a bad financial situation. Contact me to set up a free coaching evaluation. How can I help you?

Coach Jeff Wagner has been a licensed mortgage loan originator, a personal banker, and a certified tax preparer. Call or text Jeff at 805-874-2829.

His opinions are not to be taken as health, financial, or investment advice but as motivation to start or continue your path toward success.