If I have to choose between Big Banks Vs Traditional Credit Unions for sure I will choose both of them! why ? well, first Credit Unions no matter what, they can’t compete with banks! Maybe they can compete with Big Bang(boy Bands) 😉 but not Big Banks! lol :D(joke)!
if you asking why ? the reason simply because of Money! most big bank charge high fee and interest rates simply because it will go to advertisement! if Credit union spending big bucks to promote their network! probably it can solve the mystery why everyone choose APR 25% rather than 5% 😉 lol!
If we talk about Credit Union most of us will think them as traditional company that have a lot of limitation and strict rules! for sure yes! because Credit Unions are not design to make big profit! it mean a lot of consideration to give you loans! because when you failed to pay your debt, they loosing decent money! because from the first beginning they not charge you with high interest rates! as result their profit are not that much! but for people that desperately need money for doing business with low interest rates Credit unions are the most reasonable institution to solve your problems!
But for some people that need Large or even wider network and easily to get money from ATM or anything like that! bank are the most reasonable that I can think of! why ? well, for sure Banks have a lot Of ATM networks! they already investing in ATM machine from the first beginning! and Credit unions for sure, they can’t do that! 😀 again, its all about money! but it doesn’t mean they can’t join Bank networks! and most bank will gladly accept them as long they pay the fee!
The other reason you must know, about Banks and Credit Unions! actually these 2 are same I.e financial institution! but what make both of them so different simply because, they have different product and goals! for example! banks, can make profit almost everyday! because for sure everyone use bank products almost every second! e.g money transfer, pay bills, ATM, etc and etc! meanwhile for Credit unions, they focus on Loans/credits! e.g Student Loans, Auto Loans, Mortgage Loans, Credit Cards and etc!
To be honest with you Interest rates basically can make a big problems! because relying on interest rate as source of income are not the best solution! here’s simple sample for us to realize why interest rates are not the best!
For example, I have $1 Millions USD, I have 10 friends that want to borrow some money! each of them want borrow money about $100k USD! so imagine if I give all my money to them ? what you think will happen ? 😀 For sure my money will gone! in just matter of days! 😀 lol! why ? well, for most people that borrow money most of the time they are lazy to payback! and that’s a fact! 😀 and other reason why most people that have debt can’t pay back! is because most of them that borrow money from me, they will use for doing business! based on research most people that doing business, the chances are they will failed! only 10% get back their money from business(breakeven)! and only 1% that really successful with business! 😉 so from 10 people that give loans, probably only 1 or 5 people(if lucky) that will pay off his debt! in a nutshell giving a loan to a people are BAD IDEA! 😉
Here’s another real example to realize giving a loan are bad idea! Student loans 😉 yep! people need money to go college! but how many people that after graduate will get decent jobs to payback his debt ? yep! from millions college student that has degree! only a few percent that get a jobs! at least not all company will hired new graduates! 😉 do you think company will hired new people ? heck no! maybe sometime! but not all company want fresh graduates! especially for strategic position that have decent salary! so no matter what student loans can be a real problems! the only solution that I can think of to fix that problems actually by set regulation! or lowering the Interest rates! so student have times to pay his debt! but if interest rates to high, probably most them will think to default! because their feeling said, it’s no way to payback my money! and just like I said before! people that have debt, are tend to not payback! 😉 in a nutshell interest rates as income! are bad Idea!
But just like I said! lowering interest rate can make huge impact for millions people that have high debt! i.e hope to free from debt! Credit unions can offer that low interest rates! so, credit unions basically are good product or institution to fix loans problems! and I really hope some day, Financial Institution such as Federal Credit Union can have place in society! and all people can use them to get loans with small interest rates! because with that way, it can create economic balance! and just like their business motto! they are not there to squeeze every cents from you! so it would be wise if you use them to make loans!
So the conclusion, and if I have to give real answer about which one! Credit Union or banks, then my answer are both of them! for bank activity such as transfer money, pay bills and etc, Bank are good place to start! meanwhile for credit or loans, for sure credit unions can offer best rates, that you can’t get from banks!