Comments on: If Credit Unions Are Better, Why Don’t More People Use Them?

By: Josh

Josh — Thu, 11 Feb 2010 22:52:17 +0000

Most people are too lazy to research banks they’ve never heard of. They go with big names. Definitely a sense of security with big names. If that doesn’t prove to be a false sense of security now after the past few years, I don’t know what will!

Also location is very important. More branches with big names. 1 close to work, 1 close to home, 1 on the way to the grocery store, 1 IN the grocery store!
Mobile access is bigger now than ever! I need a minimum of a mobile site to check balance, transactions, pay bills, etc. A dedicated phone app is preferable. Iphones are usually 1st in line 4 that.

By: Aaron

Aaron — Tue, 12 Jan 2010 16:11:48 +0000

Don’t forget that Credit Unions are insured by a seperate entity than banks. With the FDIC supposedly running low on cash that is a big plus in my book.

By: wendyef

wendyef — Mon, 23 Nov 2009 01:18:10 +0000

I just signed up with a credit union because I hated Chase Bank so much. Chase Bank is a pack of thieves. Anyway, I am shocked because my new credit union pays 3.56% on my free checking account with no minimum up to a balance of $25,000. That was amazing to me. Also, their fees are MUCH lower and they do not re-arrange the order of debits like banks do in order to rip people off on more overdraft fees. I cannot figure out why more people don’t leave banks for credit unions other than the fact the people do not know the difference. I didn’t until I read about the differences on the internet and someone told me to check into a local credit union. If I had known about this before, I would have switched long ago. The CUs just don’t spend huge amounts advertising like the corrupt banks do. Banks are in business to take your money from you by charging ridiculous fees and doing unethical things to maximize their prophets. Usury is what banks are about.

By: Big Brother

Big Brother — Tue, 20 Oct 2009 06:48:23 +0000

I searched this because I have only heard good things about credit unions and was genuinely curious why more people didn’t sign up for accounts there. Some of the points made are very logical and reasonable, but I would like to say that point five is unnecessary- it is a total bare assertion fallacy. It says that banks are better than credit unions because of the fact that banks are better than credit unions.

By: Nate

Nate — Fri, 14 Aug 2009 19:46:47 +0000

One factor is left out in favor of credit unions. While banks would never do this, nearly 1/3 of all credit unions in the US share their branches with each other. These credit unions belong to the CU Service Centers network (see http://www.cuswirl.com for locations). This network allows members access to over 6,000 branches nationwide. Their are only 2 banks in the WORLD with more locations then any credit union in this network.

I think the key problem for credit unions is point #2. Banks do a better job with marketing. The major reason is because credit unions give their earnings back to their member/owners while banks spend more to make more.

By: Castellano

Castellano — Thu, 06 Nov 2008 07:25:03 +0000

Never use a bank for checking! I was caught just like I read once on a forum. I closed the account and it was reopened when I forgot to stop a automatic withdrawal for $15.00. The bank charged me the $15, and an overdraft fee, plus another fee for being negative. I read my email one day, about the website not being able to get the money. I said “oops” to myself and changed the account. A few days later is when I received a letter from the bank saying I owed almost $100!!

A friend of mine is a banker, and he said they started doing that a few years ago, in order to capitalize on fees, and it was in my policy. He told me there was no reason for anyone to use a bank other than convenience, and building a relationship for a loan, but even then most credit unions can do that.

This is MY OPINION: STAY AWAY FROM BANKS FOR CHECKING!!!!!!

By: Anonymous

Anonymous — Fri, 09 May 2008 03:04:00 +0000

Since I moved to the US from Canada 7 yrs ago, I’ve only used one “bank” and it’s the First Tech CU, then I use Fidelity for investments and 401K. I never thought I’d go to a CU when I was in Canada, it had seemed like why would I use a wig if i still have hair on the head. Anyway, I have to say I’ve been very happy with my CU. It has a reasonable savings rate of 2.667%. Free money orders. Deposit box. Yes it’s true the ATM’s are sparse compared to the banks, but I live in the ‘burb so they are still very accessible. Although no cashback, their visa is comparable to most. Same 1% int’l fee. I like most their stress-free auto-credit card payment from my checking, then i do my audits once in a while. But after reading this blog and the reader comments, I’m interested to check out the Fidelity mySmart and Charles Schwab, just to keep my options open. Last point before I forget, their human service is excellent, very personal, and I never have to feel like I need to prep for battle with heartless bankers to ask for anything I need.

By: Anonymous

Anonymous — Wed, 07 May 2008 05:37:00 +0000

I have been with my credit union for years and years. I am happy with them. No fees, higher CD rates and it seems like they look out for me. BUT after moving to a different state, I find that it is difficult to stay true to my CU without sacrificing convenience (no CU locations in new state I’ve moved to, and have to find co-op CU to make deposits). So with my hands tied, I had to open account with a bank for ease of use.

By: TFB

TFB — Thu, 01 May 2008 19:52:00 +0000

Anon - NCUA also has a Find a Credit Union search form you can use. USAA is not a credit union. It's a savings and loan, like Washington Mutual, which most people think as a bank.

By: Anonymous

Anonymous — Thu, 01 May 2008 19:02:00 +0000

findacreditunion only works for about 60% of the states. Is there one that works for all of them?

Fortunately, I “bank” with USAA, which I believe is a credit union. But I’d love to also have a local “bank” account, for stock power forms, a safe deposit box, and the like.