1. Credit unions are not-for-profit financial cooperatives and are among the most stable institutions in America.
2. At credit unions, depositors are called members. Each member is an owner of the credit union.
3. Banks’ depositors are called customers. Customers have no ownership interest in the institution.
4. Credit Unions:
Not for profit, not for charity, but for service.
Banks:
Are profit-oriented organizations. Exist to earn a profit for stockholders.
5. Banks can be big or small, but even the largest credit union won’t match the branch and ATM networks of a medium-sized bank.
6. Banks charge many more and more expensive fees than credit unions.
7. credit unions pay no state or federal income taxes. Banks are subject to state and federal income taxes on corporate profits.
8. If convenient access to branches and ATMs is a priority, one of the larger banks may best suit you.
9. In the entire history of U.S. credit unions, taxpayer funds have never been used to bail out a credit union.
The Savings & Loan bailout in 1980s, as well as the more recent bank bailouts, used taxpayer dollars.
10. Credit unions focus on consumer loans and member savings, as well as services needed by the membership.
Banks focus on commercial loans and accounts and services that generate significant income.
11. Credit Unions:
Member-elected, unpaid volunteers.
Banks:
Shareholder-elected, paid directors.
12. In Credit union loan consideration takes into account applicant’s character and capacity to repay. Loan rates generally lower than banks.
13. In Banks loan consideration usually based on applicants credit record and capacity to repay. Loan rates usually higher than credit union rates.
2. At credit unions, depositors are called members. Each member is an owner of the credit union.
3. Banks’ depositors are called customers. Customers have no ownership interest in the institution.
4. Credit Unions:
Not for profit, not for charity, but for service.
Banks:
Are profit-oriented organizations. Exist to earn a profit for stockholders.
5. Banks can be big or small, but even the largest credit union won’t match the branch and ATM networks of a medium-sized bank.
6. Banks charge many more and more expensive fees than credit unions.
7. credit unions pay no state or federal income taxes. Banks are subject to state and federal income taxes on corporate profits.
8. If convenient access to branches and ATMs is a priority, one of the larger banks may best suit you.
9. In the entire history of U.S. credit unions, taxpayer funds have never been used to bail out a credit union.
The Savings & Loan bailout in 1980s, as well as the more recent bank bailouts, used taxpayer dollars.
10. Credit unions focus on consumer loans and member savings, as well as services needed by the membership.
Banks focus on commercial loans and accounts and services that generate significant income.
11. Credit Unions:
Member-elected, unpaid volunteers.
Banks:
Shareholder-elected, paid directors.
12. In Credit union loan consideration takes into account applicant’s character and capacity to repay. Loan rates generally lower than banks.
13. In Banks loan consideration usually based on applicants credit record and capacity to repay. Loan rates usually higher than credit union rates.
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