Myths And Misconceptions About Credit Unions

Wednesday, April 21st, 2021
man thinking with question marks around head

Many people know of credit unions, but they may not understand them or the benefits of membership. This has caused myths about these financial institutions to circulate. Before you join a bank or shop around for loans, it is important to learn about these misconceptions.

Credit unions strictly limit eligibility

While it is true that these organizations have requirements for membership, they aren’t always strict. Some credit unions exist to serve the needs of those in a certain profession while others are open to those living in specific communities. For example, Borger FCU is open to all those living, working, worshiping, and attending school in Hutchinson, Carson, or Gray Counties.

If you aren’t sure if you qualify to join a credit union, speak with a representative. They can help you understand the requirements as well as let you know all of the benefits you could be getting.

Switching over is just too difficult

This just isn’t true! It is just as easy to switch to a credit union as it is to another bank. You may have to do a little more research to find the best one for your needs, but the steps will likely be the same. The staff will be happy to help you organize the move.

Credit unions have fewer locations so they aren’t worth joining

Although it is true that credit unions will have fewer locations than big-name banks, this isn’t actually an issue. These institutions are focused on their members. Along with having multiple locations, they often partner with other institutions to form a shared banking network. This allows everyone to have ATMs in more locations.

Banks are more high-tech

It is a myth that credit unions are less high-tech than banks. Most financial institutions offer online and mobile banking, as well as other convenient services. As an added benefit, credit unions also offer in-person and phone help, usually more easily than banks.

Credit unions don’t offer rewards like banks

This is absolutely a myth! Banks may provide perks and loyalty programs, but these are meant to keep you locked in, not reward you. Credit unions offer lower rates all the time and often ask for lower fees or no fees at all. They also offer sign-on perks when you move cards or sign up for new ones. If you are considering getting a loan, speak with someone at a credit union. You’ll likely find that members get lower rates overall.

They don’t do enough consumer outreach

Banks advertise A LOT. But, that doesn’t mean they are reaching out to or supporting you. This is because they need customers to thrive. Credit unions, however, don’t see their members as just another number. All members share in the partnership that is their credit union. Any profits that are made go directly back to the institution. This means that members see the gains, not high-level executives.

Curious about joining a credit union?

Whether you have never had a bank account or want to move your accounts, Borger Federal Credit Union would love to help! Our Team is focused on your financial health. Give us a call at (806) 273-9506 to learn more about our Services and becoming a Member.