Young families, especially those who are having children for the first time, have a vested interest in good financial management and saving money. It is precisely for this reason that credit unions— as opposed to big banking venues—are an ideal choice for young families. Here’s why!
Credit unions operate on a much more local basis than large, potentially multinational banks. This means that the union’s goals and activities are intensely tied to its community, and it strives to support local growth.
If, for example, you seek a loan with a credit union, you are not a faceless application being looked over by someone in a back office who has never met you. Credit unions prize face-to-face relationships with members, and they will be able to offer services that are tailored to your individual needs.
Whether through sponsorships, small business loans, or other means, it is common—expected, really—for credit unions to invest back into their communities. Remember, credit unions are not-for-profit, so they turn extra money back over to members in the form of better rates and services, or to the community in the form of better loans or investments.
Better Rates and Services
Young families are more likely to have a more limited credit history or to be under debt than other demographics. This makes taking advantage of a credit union’s lower fees, better interest rates, and more lenient criteria a readily apparent way to improve a family’s financial situation.
Credit unions are not profit-driven, which means that they can place a larger focus on making their products and services more available. Your credit score will still matter, but having a less-than-perfect history won’t harm your eligibility and rates as much as it would with a bank.
Fewer Fees, Better Rates
Credit unions, being smaller and more member-focused, have naturally lower business costs than banks do. Consequently, this means there is less incentive to pass costs on to their members in the form of fees. This is most apparent in how credit unions offer free checking accounts without the need for a minimum balance, but this is far from the only example. Interest rates on loans and mortgages are also more competitive and, in many cases, can beat out those offered by larger banks.
Accessible Knowledge Base
There is a natural imbalance of financial knowledge when dealing with banks or credit unions. However, credit unions do not have the same incentives to maintain this imbalance or take advantage of it. This means that credit unions are more invested in empowering their members with the information needed and want them to make sound decisions when it comes to their finances. In addition to being more than willing to answer questions about their services and products, many credit unions offer educational resources or classes that can help improve financial literacy and money-saving savvy.
LUSO Federal Credit Union is a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping young families enjoy fiscally secure futures. Our services are available in Ludlow, Springfield, Chicopee, Westfield, and Hampden County, Massachusetts.
Feel free to contact our Ludlow branch toll free at 1-844-LUSO-FCU or our Wilbraham branch at 1-800-808-5876.