As of June 2020, the complete amount associated with the assets held by Federally insured credit unions was about $1.75 trillion. That speaks volumes about how much credit unions have grown throughout the years and how some of them have even come to rival most banks as providers of credit cards, deposits and other financial products in specific areas.
Credit unions are non-profit cooperatives that typically operate in a particular area and are linked to specific communities. In the past, only members of those communities were allowed to benefit from the membership and advantages of the union. For instance, if you wanted to join a credit union founded by farmers, you had to be a farmer. Today, a lot of that has changed, and most credit unions have opened their doors to the public, allowing almost anyone to become a member.
The Advantages of Joining a Credit Union
These days, when you want to join a bank, you have the option of joining either a traditional bank or a credit union. Both are valid solutions, and both have their own unique advantages. In the case of credit unions, these benefits might suit some people quite well:
- Being nonprofit, credit unions in Littleton, and others as well, don’t seek profits the same way as banks do, and they don’t have to pay corporate tax. As a result, they are free to offer better options to members who seek to open savings accounts, deposit money or get a loan.
- As a member, you’d have a lot more freedom and more of a say in the union’s decisions. Since the entire union is owned by its customers, and since your say in all the major decisions aren’t based on how much money you add to the pool, credit unions are one of the few financial institutions that are literally “for the people.”
- In recent years, many credit unions have improved their online presence, security and ability to work with online currencies. Many financial experts consider them to be not just a practical option for today, but also see them as the financial institutions of tomorrow.
Is a Credit Union the Right Choice for You?
Credit unions are not all the same, and they’re also not for all people. If you’re used to getting all your financial products in one place and to enjoy a certain level of security and stability, then credit unions might not be your best choice. Locally operated, typically smaller and featuring fewer brick-and-mortar locations, these entities are not the same as banks, and they also provide less diversity with their products.
However, the advantages of joining credit unions in Littleton cannot be avoided. The increased interest on deposits, better loan options and oftentimes more convenient and secure solutions for online finances have made larger federally insured unions a force to be reckoned with. So if you’re serious about getting the most practical options to handle your finances, buy a car or a house, or just get a credit card for small purchases, then joining a credit union might be right up your alley.