Credit Unions: 5 Things Everyone Should Know About Credit Unions

by. Jason

We continue to get questions about credit unions and although a google search may resolve many of these questions it leaves many more people wondering what are the important things they need to know before deciding to make the switch.   If you aren’t one of the 94 million credit union members then it might be something to consider as part of your financial portfolio.  In fact, joining a credit union is much easier today. You can join through employment, where you live or work and places of worship. You can even join if you’re related to an existing member.

Credit unions are “like banks only better.” Of course some community and regional banks are comparable but credit unions put members first.  Read more about the differences between credit unions and banks.

Here are some interesting facts you may not know about credit unions:

1. In 1934, President Roosevelt signed into law the Federal Credit Union Act. This established credit unions as an alternative to banks to promote thrift and prevent usury during the Great Depression. Many credit unions have decades of history with members spanning generations.

2. Credit unions are not-for-profit financial cooperatives. Like other not-for-profit organization, credit unions enjoy federal tax exemptions allowing them to offer better rates on savings accounts, lower rates on loans and little or no fees. Credit unions enjoy this benefit because they are mutually operated without profit. Credit unions do pay other types of taxes such as state, sales and payroll taxes.

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