While there are some definite advantages to using a credit union, as opposed to a traditional bank, it would be remiss to discuss credit unions without pointing out that despite the many advantages, credit unions have a few drawbacks as well.
The reality of working with a credit union is that there is a notable difference in some financial products that they offer when compared to larger national banks. Bank of America, for example currently offers at least five different types of checking and savings accounts, close to 30 different credit cards, and a variety of loans, not to mention the number of its investment products. Compare that to the amount of the average number that credit unions offer which is only about two types of checking and savings accounts, three credit cards, less than five mortgage loan, a single personal loan, and only a couple auto loans.
With fewer options to choose from, you do not have as much freedom or ability to find the product that is right for you. By going with a larger bank, you can select the financial products that best suit your life, which could mean lower fees or more rewards.
Credit unions do not necessarily keep up with the latest in banking technology. Over the past few years, banking has gone almost entirely online. With many national banks, users can view their current balance, apply for loans, credit cards, transfer funds, and or pay bills – all in one place.
While it should be noted that some credit union did offer online banking, this is not necessarily the case for all credit unions.
Credit unions work on a much smaller scale than most banks, and that can mean inconvenience. In addition to having a limited number of branches, most credit unions keep shorter business hours than other banks and offer fewer bank machines.
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