Published on 06-29-2017
Throughout the year, we will be sharing a blog series highlighting the top eight reasons you should break up with your bank and consider joining a credit union.
You’ve probably already read two of the eight reasons you should break up with your bank and switch to a credit union. But in case you missed it, check out part one of our series, which shares the transparency you get with credit unions vs. hidden fees at big banks. And, part two reminded us that at credit unions, the members are in charge.
So, here’s the deal with credit union rates and payments.
All financial institutions have fees, rate structures and payment terms that you should read thoroughly before making any decisions. However, credit unions differ in that they offer lower rates and payments for most loans and credit cards.
According to the National Credit Union Administration (NCUA), credit unions provide higher savings rates and lower loan rates. That means you will owe less over the span of your loan and your savings grows faster. Credit unions usually also charge less in fees, offer better interest rates on credit cards and require lower minimum deposit balances.
The NCUA provides resources to compare the national average rates for 23 common loans and deposits at banks and credit unions. You can use the charts on the NCUA website to compare the national averages and help guide your decisions.
For example, a used car loan with financing for 48 months has an average of a 5.09 percent interest rate at national banks and an average of just 2.86 percent interest rate at credit unions. That’s a significant savings. Have you compared your rates yet?
Credit unions like Coastal can also help you get credit cards with competitive rates, all the benefits you want, and no confusing terms or hidden fees.
On top of that, Coastal could potentially help you save at least one percent or up to $100 a month off your existing loan when you refinance your bank auto loan or open a new one, once approved. Credit unions also tend to offer flexible repayment terms with terms that can potentially reduce your monthly payments, give you more time to pay, or both.
Banking better has never been easier. Are you ready to make the switch to lower rates and payments?