Although many people are aware that credit unions offer better loan and credit card rates than banks and also boast lower fees, there are still many myths surrounding membership. With confusion surrounding the eligibility, technology, and payment services, many people who could benefit from being a member are often reluctant to take the first step. While the number of credit union members has increased by around 10 million over the last decade or so, there are still many more who remain hesitant to sign up.
Myths Surrounding Eligibility Criteria
Unlike a traditional bank, a credit union serves a specific community or group, and this means that there are criteria that must be met to be eligible. Because of this, many people do not look into joining one. They believe they would never meet the criteria. However, because there are so many credit unions out there, the probability of someone being eligible for not just one but several credit unions is pretty high. Membership is quite broad, and often based not only on the applicant’s own status but even that of his or her family members.
Limited Locations and Physical Presence
While many people are deterred from becoming a credit-union member because of their lack of physical premises, this is not such a big issue these days. We are living in the 21st century; increasing numbers of financial transactions are performed online. And, because many credit unions use a banking network with multiple ATM locations, accessing cash and making payments is actually pretty simple.
Reluctance to Leave a Long-Standing Bank
Nobody wants to put themselves through additional stress and hassle, and many people equate leaving their bank for another financial service provider with additional concerns and worries. Many people also worry that credit unions are unable to provide their members with some of the popular features associated with traditional banks, such as being able to make online loan payments. However, this is not the case. Specialist billing solutions providers have credit union payment services that allow members to conveniently make their payments at a time that is suited to their needs and preferences 24 hours a day, 7 days a week, and to use their preferred credit card, bank account or even an eCheck for greater convenience.
Marketing and Promotional Offers
Unlike credit unions, banks can spend money on slick campaigns to advertise their products online, on TV and on billboards. So, it is no wonder that many people are reluctant to move away from these well-publicized organizations. However, a credit union can offer its members the advantage of a more personal touch and a more customized level of service that a large bank simply cannot provide. While banks can offer cash-back offers, discounts, loyalty programs, and perks, it is a little-known fact that a lot of credit unions can also offer rewards on their credit and debit cards without the high fees that are so often linked to the major banks’ checking accounts.
Cutting Edge Banking Technology
There is a common misconception that credit unions cannot compete technologically with standard banks. However, these days, this is not strictly the case. Yes, traditional banks are quick to advertise their mobile banking services and online options. But, many credit unions, these days, also offer the facility to make online loan payments through a payment portal in just the same way as a traditional bank, thus improving the member’s experience exponentially and facilitating easy payments. Today’s online modern credit union payment services are the last word in convenience for members who are looking for a quick and easy way to make payments that fit around their lifestyle and commitments.