What Makes a Credit Union Different From a Bank in Franklin Park, IL

Many people have faced the decision of whether to change banks. Perhaps it is due to an unpleasant personal experience or a preference for a different location. If you are in this situation, consider using a credit union. To help you decide, read about the main differences between banks and credit unions.

Looking at Credit Unions

What is a credit union? Essentially, a credit union is practically the same thing as a bank. You can get a checking account, savings account, or loan from a credit union. You can also invest your money in an IRA or a CD. In this sense, credit unions and banks are very similar. Yet, credit unions are different because they operate in a non-profit status. Also, there are some benefits to joining a credit union that make it a good choice for banking in Schiller Park.

How a Bank Compares

Banks are the traditional way that people store their money. Banks differ from credit unions in that they are for-profit businesses. When working with a bank, you’ll likely find that there are higher fees associated with financial transactions. You’ll also meet more stringent requirements for loans and mortgages. Despite this, some people still choose to do banking in Schiller Park with a traditional bank.

Why You Should Switch

As mentioned, there are some great benefits to joining a credit union. Most credit unions offer lower interest rates on their financial products. Also, they can qualify individuals for loans that may not meet a bank’s eligibility requirements. Due to this, it can be worth it to switch to a credit union.