The Benefits of Choosing a Credit Union Over a Bank

Whether you are planning on opening a checking account, obtaining a debit card, or applying for a loan, you will need to find a financial institution to meet your needs. Instead of turning to a national bank or other major financial institution, consider the benefits of choosing a credit union instead!

Smiling Piggybank Girl

Be a Member, Not a Customer
Credit unions differ from banks in that they are member-owned financial cooperatives that are controlled by the members, rather than by investors in the company. This means that being a member gives you control over many aspects of the credit union, including the loan approval process and key decisions made by the institution.  Being a member  of a credit union also provides a number of benefits and perks, such as lower rates and more competitive terms on loan products.

Same Services at Lower Cost
Another benefit of working with a credit union is that they typically offer the same services as national banks at a much lower cost. In fact, studies show that smaller financial institutions like credit unions offer better interest rates on savings and loans, as well as better terms on credit cards. Credit unions also tend to offer debit cards, checking accounts, home loans, auto loans, personal loans, CDs, and IRA accounts.

Improve Small Businesses
Many individuals do not realize that working with a credit union puts money back into the local economy. Large banks typically devote only a small percentage of their commercial loan portfolios to small businesses, whereas smaller institutions account for more than half of small business lending. Furthermore, credit unions are often involved in their community, while nationwide banks are not tethered to local places of operation and therefore have little community involvement. 

To find out more about the benefits of working with a credit union rather than a big bank, contact the GCS Credit Union in O’Fallon at (618) 797-7993. You can also  check out our website  for more information on our financial services.

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