Credit unions are known for having lower fees and for offering better rates on loans and credit cards. But there’s still some confusion surrounding what exactly a credit union is and how it differs from a bank. Let us clear up these four common myths before switching to a credit union.
Myth #1: I can’t join.
Fact: Anybody can join a credit union. You may be eligible based on who your employer is, where you live, or whether someone in your family is already a member, as most credit unions allow members’ families to join (iQ Credit Union does).
Myth #2: It’ll be hard to access my money.
Fact: You might not find a credit union on every block, but fewer locations may not be a deal breaker. Many credit unions (including iQCU) offer a shared banking network with access to nearly 30,000 surcharge-free ATMs. That means you can use any in-network ATM for free, even if you’re away from your branch.
Myth #3: Credit unions aren’t big enough to offer financial protection.
Fact: There are big credit unions and small ones, but as with banks, your deposits at a credit union are insured by the federal government for up to $250,000.
Myth #4: Credit Unions don’t offer as many perks as banks.
Fact: Credit unions offer many of the same member perks as banks. From debit and credit card services, online banking, and bill pay services to e-statements, mortgages, car loans, and more—credit union have it all. And because credit unions are not-for-profit, they return all profits to you via improved services, better rates, and fewer and lower fees.
If you’re thinking of switching from a bank to a credit union, we hope these myth-busting facts have calmed your mind. Credit unions don’t bite—we promise. In fact, our customer service is typically ranked higher than that of banks, and we truly appreciate and respect our members.