How to Compare Credit Unions

Credit unions strive for the betterment of a particular community.

Credit unions are community-based banking institutions. Banks are often owned by larger corporations, seek increasing profits and charge higher fees. Credit unions, though, are non-profit institutions that are run by members of the credit union. Credit unions cater to a particular consumer--often a member of a particular union or business. Comparing these institutions is relatively easy.

Things You'll Need

• Credit union literature

Instructions

1. Look at credit unions (CU) that are based in your community. You can establish a relationship with your bankers if you choose to do business locally. In addition, your money will be used to support the community in which you reside.

2. Look first at membership requirements. You cannot, for example, join Navy Federal Credit Union if you are not a member of the U.S. Navy. Some credit unions only accept members of a particular employment field (e.g. Steel Workers Credit Union). Eliminate credit unions where you do not meet the eligibility guidelines.

3. Compare account options for a number of local credit unions side-by-side. Look for fees charged. These can include transaction fees (for non-CU ATMs), minimum balance penalties, annual fees and monthly dues. You may be willing to pay dues for a particular union--especially if the benefits outweigh the cost of the dues.

4. Compare the rates offered on mortgages, car loans and personal loans, even if you aren't in the market for any of these products. These rates will give you a good understanding of the discounts offered to credit union members.

5. Compare the rates on yielding accounts, like savings accounts, certificates of deposit (CDs) and other investments. Some credit unions may offer more competitive rates on these accounts if you are willing to join the credit union (and pay dues).

6. Look at any ancillary benefits at each credit union. Some CUs may offer discounts at community retailers. Some may offer more competitive mortgage fee programs. Others still may be more willing to negotiate with you if you are struggling to pay a large debt, like a mortgage. Choose the credit union that best meets your needs.

References

• America's Credit Unions
• Bankrate: Compare Credit Union Rates
• Credit Union Locator