Customers have begun to seek alternatives to traditional banking because of the several regulations and high rates of fees banks demand. A great alternative to traditional banking is credit unions. Colorado credit unions are leading over local banks in loans, mortgage, and other services. This is likely because they are a cheaper and friendlier alternative. Credit unions and banks may run under synonymous factors and laws, but the value you get will be different.
Both banks and credit unions offer similar services. They offer different accounts, loans, and mortgage services. Yet, over 2 million credit union users in Colorado seem to see credit unions as a better alternative.
Why credit unions are the Cheaper and Friendlier Alternative
● Nonprofit organization
Unlike banks, credit unions are a nonprofit organization. This means that they don’t have to cater to the whims of shareholders. The profits are given to members as better interest rates on deposit or savings accounts and lower rates on loans, overdraft, and bank rates. Colorado credit unions offer a more pocket-friendly alternative than local banks.
● Low or No-fee Account
Credit unions not only offer cheaper loans and Bankrate but also low or free checking accounts. A large number of Colorado credit unions are known for offering zero-fee checking accounts to their members. Most millennials are looking to credit unions for cheaper rates.
● Personalized Customer Service:
Credit unions offer more personalized services to members. As a result of the size of the establishment, the staff can focus on the individual needs of members. If the American Satisfaction Index is any indication, members experience better services in credit unions than banks. It never hurts to see a friendly face when you bank.
● For Those With Bad credits and the Unbanked
A credit union may be the better choice if you have bad credit, or you fall into the category of the unbanked. ‘Unbanked’ refers to people who do not have an account. The credit union is the friendlier and cheaper alternative to get started. Colorado credit unions help members get loans.
● Better Credit Card Deal
Credit unions offer competitive rates on credit cards. Colorado credit unions provide credit cards protected with fraud protection technology, card alerts, and zero annual fees. They let you design your card and earn rewards for using your card.
Credit unions are hands down, the cheaper and friendlier alternative to banks. The advantages are numerous and just right if you are looking to avoid bank charges.