Although some people still think there is a stigma attached to using credit unions, this attitude is on the wane. In the current economic climate, consumers are realizing that the real key to making sound financial decisions is researching institutions. Most people are aware there’s a major difference between banks and credit unions in terms of loan and deposit rates. However, there remains a number of misconceptions about credit unions that we should dispel. From misunderstandings about credit union payment services to financial protection capabilities, it is time to break down the stigma.
Can Credit Unions Really Offer Sufficient Financial Protection?
There are both small and large credit unions. The federal government insures all of them for up to $250,000. This is exactly the same amount as any bank. More than 7,000 credit unions are currently monitored by the National Credit Union Administration (NCUA). The credit unions serve more than 110 million members across the country.
Accessing Money Is Difficult
One of the greatest misconceptions about credit unions is that they make accessing your money difficult. Today, this is simply not the case. You can still go to your local branch to withdraw funds. However, most credit unions today are offering 24/7 access from any place thanks to online banking. Today’s credit unions often offer mobile apps and telephone banking. This allows members to easily see their account balances and transfer money wherever they happen to be. With access to ATMs, too, withdrawing cash has never been so simple.
Are Credit Unions Accessible To Everyone?
Many people believe they would not be able to join a credit union. However, this is highly unlikely. There are so many credit unions out there that there is sure to be one for everyone. Some are open to people who live or work in a particular area. Others are for people in certain employment sectors. Others will have different criteria. Nevertheless, there is sure to be one that is accessible.
Credit Unions Have Few Services To Offer
￼Many people are confused about the services credit unions can offer. There is a misconception that credit unions have fewer services for members than banks. Again, this is not the case. Credit unions offer the same financial products as banks. These include credit cards, debit cards, checking accounts, IRAs, home loans, and auto loans. Credit unions also offer lower and fewer fees, as well as better rates, for members.
It’s Hard To Make Loan Repayments To Credit Unions
People know credit unions have favorable rates on loans. However, many people are reluctant to seek them out. This is because they have the mistaken belief that credit unions make it hard to make loan repayments. Banks today make it clear that you can make loan repayments online by using your favorite card or ACH payment. Credit unions today are increasingly offering this service to their members. Today’s streamlined online payment solutions for credit unions mean that members can enjoy the same conveniences. They can have 24/7 access to payment systems that are user-friendly and that make facilitating repayments a breeze.
The responsibility lies with credit unions to help potential members recognize the possibilities they offer. They can do this by adopting BillingTree’s cutting-edge customizable payment processing solutions tailored to the needs of financial institutions. By giving members the convenience and access they need, credit unions can move forward into the future. BillingTree’s innovative credit union payment services are the ultimate streamlined solution. Helping to improve members’ experiences through strengthened relationships, multichannel payment solutions are the choice of the next generation of members.