Credit Union Vs. Bank

I joined a credit union today, well yesterday, whatever. It's early.

I hate the banking system. Truly loathe it, but I need a debit card to exist and make money(the root of all evil and all that).

I'm still trying to figure this all out but the benefits of a CU so outweigh a bank that I'm wondering why most don't take advantage of the CU option instead of getting raped by a bank.

I can get dental insurance just by going with a CU. I can't get overdrafted as they have a option to not let me use money I don't have. Never seen that with a bank.

Anyway, I'm still figuring all of this out but I wanted to hear what you all had to say about this. I do think this is a way better option than using a bank.

Have at it, guys and girls. Wish I could have put this in a better forum but I was lost with this subject.

originally posted by: TheSpanishArcher
I joined a credit union today, well yesterday, whatever. It's early.

I hate the banking system. Truly loathe it, but I need a debit card to exist and make money(the root of all evil and all that).

I'm still trying to figure this all out but the benefits of a CU so outweigh a bank that I'm wondering why most don't take advantage of the CU option instead of getting raped by a bank.

I can get dental insurance just by going with a CU. I can't get overdrafted as they have a option to not let me use money I don't have. Never seen that with a bank.

Anyway, I'm still figuring all of this out but I wanted to hear what you all had to say about this. I do think this is a way better option than using a bank.

Have at it, guys and girls. Wish I could have put this in a better forum but I was lost with this subject.

Credit union is personally preferable by far. Zero fees, balances req'd, debit card.

For me? No banks...!

a reply to: TheSpanishArcher

I was so done with banks and their mess ups that I went for years without a bank account. Several years ago I joined Delta Credit Union and they are great. Costs me nothing and send an email with my daily balance-no overdraft fees ever. The best part is how professional and nice they are-both in the office as well as on the phone. Can't say enough how much I love them.

a reply to: TheSpanishArcher

Credit Unions are great. I think people don't use them because they really don't know the difference.
The regular banking stuff might not make a big difference but when it comes to loans/mortgages, you can save tens of thousands of dollars. Closing costs alone with a bank vs. credit union is truly shocking.

I get additional discounts with my credit union if I have more than one loan, ie: car and house, and the rates are ridiculously low.

a reply to: TheSpanishArcher

The biggest difference is that credit unions are non profit and owned by their members.
There is usually a annual meeting that you can attend too although few people ever do.

Cu's have different regulations thanks banks as well, far to many to list here.

As far as the overdraft fees go, most credit unions offer some sort of protection plan. Either your debit card will be denied or there is a savings account transfer or some yadda yadda.

Ultimately it's your responsibility to watch your balance not the banks. When you bounce a check, the bank gets charged, then they pass it on to you.


As for myself, I prefer a local credit union.
No fees
Free checks
Online bill pay

My wife is the manager of a credit union...

I broke down in Oklahoma and needed a new vehicle ASAP. My credit Union OKed the loan over the phone and I was on my way in less than an hour. Think a bank would do that?

Credit Union.


You own your credit union (in a sense)
Banks own you (straight up)

I have both but having money in my CR gives me a great advantage. They'll usually loan me more money with a lower interest rate than my bank will.

If you had to choose between either, I'd say CR all the way. They have way more 'good' benefits than a bank and they're actually pro customer where as a bank couldn't give 2 #s about you.

Since we're on about CR's... I want to tell a little story that happened to me recently.


I just bought my Hellcat in April. I went to my Bank to loan me 50K. They pretty much laughed at me (Good job W's Frgo). I went to my credit union, whom I financed my last car through (Corvette) and they said sure.. but we'll only give you 40K since you're still kinda new to us. They financed my vette for 30k. But, they were going to cut me a check and I could go out and buy whatever... No questions. Bank wouldn't have done that even.

Still, 40K was a little short compared to what I wanted to spend for the Hellcat. So, sadly, I had to pass.

I went to the dealer and I said "Here are the keys to my vette... I want the Hellcat but my bank wont do and my CR is only going to give me 40k. Work your magic". I know they wanted to sell me this expensive beast so I had a pretty good chance it would work.

They came back with wanting to finance me with the full amount, plus my vette. It was a 5.something interest rate. That really sucked! Still.. I wanted that Hellcat! So I said.. sure.. A few xtra K overall wont be so bad.

Paid my first payment in July on the Hellcat. My CR called me up and said "Hey... You bought a car. Why didn't you take our 40k"?

I told them that it wasn't enough to get what I wanted so I had to go with a more expensive interest rate to get what I wanted.

He said "Hold on... We got you". He told me he would call me back and sure enough, an hour later he came back and said that he would re-finance my Hellcat at a MUCH MUCH cheaper interest rate. Not only that, He asked me if I wanted to pay my first payment with them in August or September... I took September. So far, I've only paid one note on that car and I've had it since June 20th. Them giving me the first month of no pay totally made my day. Plus... They asked me to tac on another 25 bucks a month and they would shorten my 5 year payoff to 4 years and 3 months.

These guys did me a real solid. For that, I will always love my Credit Union. They renewed my faith in business. ...In a bank even. Well.. I don't want to cut them down and call them a bank, if you know what I mean. They are far better than a bank and well worth the investment.

I have been with USAA for 20 years. I love them. Everything is online. I get all my atm fees back and there are no fees.

I think older peeps might remember the CU bubble fail...but that was fixed. When was that.....80S? Gotta look.

a reply to: StallionDuck

Wells Fargo is the worst bank I've ever heard of.

When I got a mortgage 20 years ago it was sold several times in the first few years and one time it was sold to wells fargo.
I went into their branch in my area to make a payment they said there is a fee to pay it here...
Wtf?
I forgot how much the fee was....

And 5% on a var loan sucks...lol

I have had credit union bank accounts for years. They are much easier to deal with on a personal basis. Much more attentive when you're inside. Friendlier tellers and office personnel.

CU's are not driven by profit, like banks. There are far fewer fees and restrictions.

When I moved to my current area, it turned out that the closet credit union was about a 45 minute round-trip. The closest bank was within walking distance. I elected to make the drive rather than dealing with a bank.

If you don't have a CU within a reasonable distance, the best choice of bank is a small community bank.

-dex

a reply to: lakenheath24

I think older peeps might remember the CU bubble fail...but that was fixed. When was that.....80S? Gotta look.

I remember the Federal Savings and Loan crash that happened in the late 80's. I believe that's when the surviving FSL's became the Federal Saving Banks.

Credit Unions used to be pretty limited. There was only a small group of people that could have accounts with them. Like business employees, or military members.

-dex

a reply to: TheSpanishArcher

Credit unions don't have all those BS banking fees which is good...but their operating hours suck. I have been with my CU forever and have been happy with them simply because my cost of having my money in the bank with them is much cheaper than at some large corporate bank (which charges you up the @ss for things you don't need)

originally posted by: TheSpanishArcher
I can't get overdrafted as they have a option to not let me use money I don't have. Never seen that with a bank.

o.O My bank (a regional) has that option. PLENTY of banks have that option, actually. Some shadier ones don't, they're usually national. When I had a Bank of Satan -- I mean, America -- account, they did outright tell me there was no option to turn off overdrafting. I have no clue if they had overdraft protection in general back then, I don't remember. If they did. If so, it was probably under the stipulation that it linked with a savings account from the same company. BoA sucks donkey balls anyway, though, for a multitude of reasons.

Anyway, I'm still figuring all of this out but I wanted to hear what you all had to say about this. I do think this is a way better option than using a bank.

CUs are great options, but a lot of the benefits of them can be found at most local and regional banks as well. I use a regional, and thus far don't have any incentive to switch to a CU. I'm not particularly interested in the niche benefits like your dental plan, my main interest in a bank is whether or not there's fees, and how well I'm treated when I'm n there. So far, I've been treated like royalty at mine and have zero incentive to throw in the towel. Our joint account also has no fees, but most banks waive that if you just direct deposit a paycheck. Since that's my husband's preferred way of receiving his, no biggie either way.

I will NOT, however, open a savings account with a CU. The ones I checked out around me when I was shopping around before we opened ours had worse interest yields than regular banks do, and regular banks have pretty crappy yields.

Ultimately, what is the biggest mark against CUs for me is the limited branches. Some have so few that it's just not worth the hassle to go so far out of your way to get in a door. Good home/auto loans or not, accessibility really does count far more than people care to admit.

a reply to: Nyiah

Banks like Wells Farg-hoe has overdraft.

Before Bush put an end to it, you could borrow money up to a certain amount for a really small fee until payday. Bush clamped down on it because it was taking away from the HIGH fees that Pay-Day Loan companies were making off poor people, yet only the banks got slapped on the wrist for it.

Now, they do let you overdraft, again up to a certain amount but they charge you an overdraft fee per transaction which will add up quick. I think the point to where I can't pull more money out of an empty account is like 800$ or so. I think it goes up with tenure.

On the other hand, my CU has higher fees for overdrafting, but it's kind of weird. It's like 10 bucks more but once my balance is zero, It will not let me use it until I have a positive balance. I'm not sure how but I was able to overdraft it by a little once but I have no idea how. I was charged 45$ for it. They still dropped it which was cool of them. If I go to the gas pump, the pump will stop at zero balance. Same with when I'm buying stuff at the store. I'll have to use my other card to carry the leftover balance which is cool. That's why I always use my CU card first because I really don't keep up with my balances like I should. I just assume I have more than enough because I'd keep the tally in my head. Though, the memory isn't so good these days

originally posted by: StallionDuck
a reply to: Nyiah

Banks like Wells Farg-hoe has overdraft.

Before Bush put an end to it, you could borrow money up to a certain amount for a really small fee until payday. Bush clamped down on it because it was taking away from the HIGH fees that Pay-Day Loan companies were making off poor people, yet only the banks got slapped on the wrist for it.

I vaguely recall that, payday loan places really drew a lot of ire over it, and for good reason.

Now, they do let you overdraft, again up to a certain amount but they charge you an overdraft fee per transaction which will add up quick. I think the point to where I can't pull more money out of an empty account is like 800$ or so. I think it goes up with tenure.

I think my limit for overdrafts at BoA was around grand, but I never tried it out. They DID try to screw me over in several hundred in overdraft fees for purchases that I never made, and they knew it. I had a hell of a time getting rid of that despite having the account records right in front of us. They SUCK. Not the tellers, they really did try to help, but the managers and overall company ethics are rotten.

On the other hand, my CU has higher fees for overdrafting, but it's kind of weird. It's like 10 bucks more but once my balance is zero, It will not let me use it until I have a positive balance. I'm not sure how but I was able to overdraft it by a little once but I have no idea how. I was charged 45$ for it. They still dropped it which was cool of them.

I know mine has a $37 per item fee, but I've never been hit with it. When we opened the account, they were very straightforward and asked outright if we wanted to turn off overdrafting or leave it on. We have only 2 bills on autopay that we can't reschedule due dates with and have no grace periods for that we've worked with the bank to authorize to pay regardless of the balance. They've never given us a overdraft fee for them, and we definitely have been slightly in the hole for a few days a couple of times after those went through.

If I go to the gas pump, the pump will stop at zero balance. Same with when I'm buying stuff at the store. I'll have to use my other card to carry the leftover balance which is cool. That's why I always use my CU card first because I really don't keep up with my balances like I should. I just assume I have more than enough because I'd keep the tally in my head. Though, the memory isn't so good these days

Yep, us too. We operate by the mantra of "When the money's gone, it's gone." Overdrafts just make it more, eh, "gone" by the end of it. We've had transactions denied for not having enough in the bank a few times, it's a really good (and embarrassing) reminder that one of us effed up the balance and we need to track it better.

When I was younger I tried Wells Fargo, Washington Mutual, US Bank and Bank of America.

Horrible horrible horrible.

Customer service was intolerable.

Now I've been with USAA for well over twenty years.

Couldn't be happier.

Well, thanks to all for the info. Banking is a tricky minefield to navigate and I appreciate all you have said. I just started it up so I could go to work in a few days when they give me a card to shop for others - Instacart is the job btw - so I haven't gotten into how this quite works out but the info here is very good and I thank you all.

Seems as if I need a regular bank account if I need to travel but the CU will work for local transactions so that's a good thing to know.

originally posted by: GENERAL EYES
Washington Mutual

I actually liked that bank as they didn't screw me over like Chase had. But then the crash happened and they were deemed "insolvent" when they certainly weren't and they were taken over by Chase. Funny how that worked out.