Credit Unions Beat The Competitors In Every Way
In the summertime most of us are thinking about fun and sun. If that sounds like you, and you’re in the market for a boat or RV, you may want to head to your local credit union for the best rates. Credit unions offer rates that are downright embarrassing to the competition.
They can do this because credit unions are owned by their members. This means you are more likely to be treated like a person and receive the type of service you desire. They are non-profit organizations. All profit made by a credit union goes right back to its members as dividends, yet another advantage to choosing a credit union over a competing service.
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Banks, on the other hand, are in business to make a profit and are, therefore, always looking for new ways to charge fees and change policies to make themselves more profitable. Credit unions also assess fewer and smaller fees for their services.
Credit unions are exempt from most state and federal taxes since they are not for profit. Many in the banking industry believe credit unions have an unfair competitive advantage and they go out of their way to point out the disadvantages of credit unions in an attempt to persuade customers to stick with banks.
Banks often criticize credit unions for having membership requirements. While this is true, virtually anyone can qualify to join based on their place of residence, their employment or other associations they may belong to.
They will also often claim that credit union ATM access is limited. In reality, most credit unions are part of large ATM networks or at the very least reimburse their members for fees associated with using ATMs that are not part of their network.
Bank advocates will say the credit unions are not insured by the FDIC as banks are, but this is disingenuous as credit unions have their own insurer. Deposits are backed by the full faith and credit of the federal government, and each account is insured for up to $100,000. Many credit unions insure their own accounts privately to give an added level of protection.
How much can you save on a boat or RV loan? One recent survey shows on average that credit union rates are one to one-and-a-half percent less than those offered at banks for boat/RV loans. This small percentage difference really adds up to a lot of money over the term of a longer loan. So, if you’re looking for a loan to finance that new boat or RV purchase, remember to check with your credit union for the best rates around.
