What a Credit Union Provides

Learn about all that AFL-CIO FCU provides for our members.

A common misconception in the financial institution world is that credit unions do not offer all of the same loans, account options, and products that a bank provides for their customers.

In reality, credit unions offer their members a wide variety of loans, savings/checking accounts, and products for both personal and business purposes. Not only do credit unions meet the same needs as a bank, but they do so typically at lower rates and with more care and benefits for their members than banks provide for their customers!

Credit unions provide affordable loans

Credit unions provide loans for everything you could need, from consumer loans to business loans. Their consumer loans break down into two major categories, non-mortgage and mortgage loans, with the majority of loans falling under non-mortgage loans. This category covers loans for vehicles (the most common), credit cards, personal debt consolidation, and personal loans for just about anything, including holiday promotional loans that give you a helping hand with all of your holiday needs!

Holiday loans are a perfect example of how credit unions not only provide the same services as banks but how they go the extra mile in the process.

Because credit unions are not-for-profit, they grow abundance in their communities. Not in the pockets of outside shareholders. pic.twitter.com/ZH9oKrvT2f
— yourmoneyfurther (@moneyfurther) November 4, 2020

The other category of consumer loans is mortgage loans which, you guessed it, are for purchasing a home. These loans come in a few varieties. The first of which, ironically, is called a first mortgage that comes either as a fixed rate or variable rate - that adjusts over time based on market trends. The other variety of mortgage loans is a home equity loan that is also offered in two options.

The first is a fixed-rate second mortgage, and the second option is an adjustable-rate Home Equity Line of Credit (HELOC).

Credit union business loans

Credit unions, like banks, also offer business loans that are used for multiple different aspects of a business. These can include operating loans that can be used to purchase inventory or help with temporary cash shortfalls but also loans that help with start-ups, expansion, commercial real estate purchasing, and business credit cards!

Credit union member accounts

Savings accounts and checking accounts are fairly standard when it comes to credit unions and banks. Credit unions, however, do offer some interesting bonuses on their savings accounts. One of these bonuses is a Christmas/vacation feature that helps you put money aside for holidays or a trip that you want to help fund. Other saving options are available at credit unions that some might not think of like IRAs, safety deposit boxes, and term share certificates which are the same as a Certificate of Deposit CD provided by a bank!

Credit union member and business products

Credit unions, on top of the normal financial services, also provide member products and business products. Member products are provided by the Credit Union Service Organization (CUSO). The member products include:

Insurance
Brokerage services
Business lending
Mortgage lending

The business products that are provided are payment processing (the ability to accept credit and debit card transactions) and cash management, including cash orders and deposits, and lockboxes.

The bottom line on banking at a credit union

Banks hold the representation of convenience over credit unions, but this is misleading. Credit unions are becoming just as convenient and provide the same services that can be found at a bank.

The kicker is that credit unions provide more detailed services to their members and tailor the loans, accounts, and products that they provide to their member's needs.