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How to Get the Most of Working with Your Local Credit Union?

On the surface, a credit union and a bank may seem like they’re equivalents. Although both financial institutions share some similarities, there are fundamental differences between the two that can make credit unions a more attractive option.

Unlike banks, credit unions are owned by their members. As a result, there’s a greater emphasis on providing local services and benefits to the member-owners that a bank could never hope to match.

Before you search “credit union near me,” here are some tips you should consider to get the most out of your new financial relationship.

#1 Take Advantage of the Cost Savings

Banks operate on a for-profit basis. Conversely, credit unions focus on providing a service, not making a profit. As a result, they offer the same financial services and products that a traditional bank would, such as:

  • Credit cards
  • Checking accounts
  • Saving accounts
  • Online/mobile banking
  • Loans
  • Mortgages

But here’s the difference: Credit unions can provide those valuable financial services at a lower price. While it depends on the specific credit union, you can typically expect to enjoy significant cost savings in several areas, including higher interest rates on savings, reduced fees, and lower loan rates. 

In addition to cost savings, credit unions often come with insurance backed by the National Credit Union Administration (NCUA) of $250,00 for individual member deposits. And, in some cases, they may also provide further protection via ESI Insurance coverage.

#2 Exercise Your Vote

When you become a member-owner, you can have a say in how the credit union is run. You are afforded the right to vote on important decisions and issues that impact the direction the union takes in the future. Whether it’s for a board of directors election or a merger with another credit union, as a member, you can make your voice heard.

 

Another right you have as a credit union member is to run for the board of directors. To run for a position on the Board of Directors, you must satisfy the following NCUA criteria:[1]

  • You are a current member
  • You have no criminal convictions involving dishonesty or breach of trust
  • You meet the established minimum age requirement (if there is one)

#3 Utilize the Member Benefits

Depending on your local credit union, there may be additional benefits that help you bank even better. As a valued member, the credit union may offer unique, personalized services that you’d never receive from a bank, such as:

  • Teacher Member Benefits
  • Summer Pay Program
  • Skip-A-Payment
  • Teacher Loan Discount
  • Overdraft Protection
  • Courtesy Pay
  • PFP Family Security Plan
  • GreenPath

#4 Financial Education Assistance

Do you want to learn more about strategies for protecting, managing, and growing your savings? A credit union may provide expert assistance services like:

  • Financial counseling – Free one-on-one financial and debt counseling by a certified expert.
  • Debt management services – Customized debt management plans to help you lower your interest rates and pay off debt faster.
  • Housing services – Services that help you prepare to purchase a home, take out a reverse mortgage, or prevent a foreclosure.
  • Credit report review – Education about credit scores and ways to improve your score.
  • Student loan counseling – Expert advice on student loan options and repayment strategies that can postpone or reduce your payments.

 

Getting the Most Out of Your Membership at North Jersey Federal Credit Union

A local credit union isn’t a bank—it’s something better. 

But the differences are moot if you don’t take advantage of the unique products, services, and benefits that a local credit union offers, such as cost savings, membership votes, member benefits, and financial counseling.

For a trusted credit union, New Jersey-based North Jersey Federal Credit Union can help pave your way to a bright financial future. We’re committed to serving and supporting our valued members throughout each step of your unique financial journey—there’s a reason we’re the best credit union in NJ.

Are you ready to enjoy the all-new member experience? Join our credit union today!     

Sources

NCUA. Board of Directors Eligibility Requirements. https://www.ncua.gov/regulation-supervision/legal-opinions/1988/board-directors-eligibility-requirements

[1] NCUA. Board of Directors Eligibility Requirements. https://www.ncua.gov/regulation-supervision/legal-opinions/1988/board-directors-eligibility-requirements

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