Would you Change from Bank to Credit Union?

[snafu]

The banks are charging more while customer service for ordinary people seems to be an oxymoron. Would you consider moving from the BIG banks to a Credit Union? If you're seeking a mortgage in 2014, will you check the rates at a Credit Union? If you decide to buy a car, you may find a better rate at the CU

http://www.moneytalksnews.com/2014/02/12/9-reasons-why-a-credit-union-is-better-than-a-big-bank/?utm_source=newsletter&utm_campaign=email-2014-02-12&utm_medium=email

[Like2Plan]

I've always had a bias towards CUs because the costs are usually cheaper. It's not always guaranteed to be cheaper, but it is always worth checking when looking for a particular financial service.

[PauletteGoddard]

Motives, first and foremost. I have had a credit card with a credit union over ten years. The number of terms and conditions changes? Two. I have had a credit card with a bank over seventeen years. The number of terms and conditions changes? 12.

Number of grace period changes with CU credit card: 0.
Number of grace period changes with bank credit card: 2.

My credit union didn't offer wackadoo "liars loans", NINJA mortgages, interest-only mortgages during The Great Silliness. We all know the banks did, and some big ones went under because they did. My credit union doesn't charge us for having accounts, nor lose our submitted paperwork for loans. It doesn't try to foreclose on properties it has no financial interest in, nor change non-profit business (namely, PTA) accounts terms and conditions so that the PTSA gets dinged with transaction fees in its greatest fundraising month because several transactions are for amounts greater than $5000.

We changed because the bank didn't want our accounts anymore. A Vice-President wrote a form letter to us telling us we couldn't maintain our account fee-free unless we had regular direct deposits. This was a bank decision outside any influence of our credit history. Why should we have our accounts with an institution that takes, takes, takes but rarely gives? I didn't get involved in the housing mania, why should I be punished? Why should my school's PTA be punished?

[fruitbowlk]

I changed from a bank to a credit union and no complaints so far.

[disneysteve]

The banks are charging more while customer service for ordinary people seems to be an oxymoron.

I have never paid a penny in fees to my bank and I've always gotten great customer service so I've never had any reason to think about switching to another institution.

[bjl584]

I'm a member of a credit union in addition to my bank. I really don't use the credit union for much though. They do have decent loan rates, so if I ever needed to borrow money I'd definitely check them out.

[Permanent Temp]

No. I belonged to a credit union before but it was a big pain in the butt when I moved for school. I then joined a big bank with a college account and have had them ever since. I could take out my money from anywhere and aside from a few overdrafts I've never paid any fees. Due to that I wouldn't do a credit union again unless it was a good deal on a car loan.

My car loan is through a credit union but sadly due to a mistake on my credit report I had a pretty high interest rate for my car. I was also I first time buyer so I had few options. I will be excited when I no longer have to deal with them even though I'm thankful they took me on for the loan. I moved out of state and it is a pain to do extra payments (have to mail them) and their website doesn't let me link to external accounts.

[kork13]

I've always had a bias towards CUs because the costs are usually cheaper. It's not always guaranteed to be cheaper, but it is always worth checking when looking for a particular financial service.

This is my perception as well. Generally, CU's have lower (or competitive) rates compared to the national or regional banks, and in most cases, also have better customer (more "I want to help you do what's best for you" vs. focused on selling you a product). I primarily use a bank (USAA), but it still mostly has the excellent rates & fantastic customer service common to CU's. However, I do also use Pentagon FCU, and have been happy working with them. If suddenly USAA decided to change its business practices, I'd jump ship to a CU like Pentagon or others in a heartbeat. When I got my car loan & mortgage, you bet I checked rates between USAA, PenFed, and others. In today's internet-connected world, there is very little you can't do with/from a CU that you can't with a major national bank.... ATM access & deposit options (in-person & mail only vs. scanner/smartphone or ATM deposits) are the only potential negatives that immediately come to mind for me.

[disneysteve]

aside from a few overdrafts I've never paid any fees.

It has always been my impression that most of the bank fees that people complain about are self-induced. Fee for a bounced check. Fee for overdrawing your account. Fee for a late payment on a loan or CC. Fee for dropping below the minimum balance on your account. Fee for using another bank's ATM. These are all avoidable things. It isn't the bank's fault if you do something to trigger a fee that was completely in your control.

[hamchan]

I hung onto my bank account for a while after opening a CU account. Then they changed their terms so that in order to keep from getting charged monthly fees I had to have at least $1000 direct deposited each month. Only one of my (part time) employers even offers direct deposit, and it's not often I make $1000 a month in take home pay since around half of my income from that job is in cash gratuities, which are also taxed and that is taken out of my pay. So I closed that account. My CU doesn't charge any monthly fees no matter what.

[hamchan]

It has always been my impression that most of the bank fees that people complain about are self-induced. Fee for a bounced check. Fee for overdrawing your account. Fee for a late payment on a loan or CC. Fee for dropping below the minimum balance on your account. Fee for using another bank's ATM. These are all avoidable things. It isn't the bank's fault if you do something to trigger a fee that was completely in your control.

People make mistakes. I may not make them super often, but I prefer not getting charged 25-30$ for them when I do.

[bjl584]

People make mistakes. I may not make them super often, but I prefer not getting charged 25-30$ for them when I do.

If you're a good customer and are in good standing with the bank, and it truly was a one time mistake they will more than likely waive the fee.

[disneysteve]

in order to keep from getting charged monthly fees I had to have at least $1000 direct deposited each month.

Now that would make me change banks. My job doesn't offer direct deposit and I wouldn't keep an account if it cost me money to do so.

[hamchan]

If you're a good customer and are in good standing with the bank, and it truly was a one time mistake they will more than likely waive the fee.

Or I can just have an account at a CU and not have to call at all because there are no fees.

[freedomv]

Credit Union pros and cons

We have accounts with a local credit union and a regular bank. We have had better loan scenarios with a regular bank but for all other issues (checking account services & fees, online banking options, etc.) the credit union treats us better.

If you decide to go to credit union route, research all the features their account do or don't provide - so you can make an informed decision. You are the only one that knows which features matter most to you.