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March 23, 2009

Why you should join a credit union now



If you are not a part of a credit union, you should be.  Especially in these crazy times, a credit union is like a breath of fresh air, a respite from the financial miasma caused by many of the for-profit, retail banks. 

Simply put, credit unions are member-owned, not-for-profit financial institutions that provide many of the same financial services that banks do, including checking and savings, loans, credit cards and ATMs.  However, they have added benefits such as better interest rates, reasonable loan terms, educational training, special products, and top-notch customer service. 

There are a few drawbacks of credit unions, but they are negligible when compared to the advantages.  For example, many credit unions do not have as many locations and full-service branches as major retail banks.  They do, however, allow you to do a majority of transactions online including deposits. Moreover, eligibility requirements for membership may be strict.  Some credit unions require that you work for a certain company, or that you live in a certain county.  While this may be true, you have a good chance of qualifying for one of the many credit unions in your area.  Finding a credit union will take a little research on your part, but it is well worth the effort. 

Below are three resources that provide great information about credit unions and their benefits.  The first is a post on my friend’s popular blog, CreditMattersBlog.com.  I suggest you read the post, which has several links to help you find a credit union near you.  Second, the National Cooperative Business Association (NCBA), which represents cooperatives in the United States, produced a great video on the advantages of credit unions. Third, there is a web site that will help you find a credit union in your area. If all that doesn’t suffice, you can do a general search with Google, and you’ll find more great information. 

Resources:

Why You Need a Credit Union Relationship
CreditMattersBlog.com

Credit Unions – The Better Choice (Great Video Overview)
National Cooperative Business Association (NCBA)

Find a Credit Union
FindACreditUnion.com

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Kevin - While I generally support credit unions, you should know that their executives have lobbied hard against the legislation that would allow bankruptcy judges to modify first mortgages against a person's residence once that person filed a chapter 13 bankruptcy case. This is hard to swallow since this is the legislation that will allow people to save their homes, while not costing the taxpayers one dime! (And to put the legislation into perspective, you should know that if someone files a chapter 13, they can modify any mortgages against investment property, their vacation home and/or their yacht. They just can't modify the mortgage against their residence!)

We switched to a CU 2 years ago-
I have yet to see one error or one bank fee.

I am glad to see you you keep an eye on CM blog-

I totally agree too, Kevin. I joined a credit union a few weeks ago after WaMu (Chase) hiked up my credit card interest rate. I am going to apply for a VISA at the credit union and transfer the balance there. Amazing that they can offer 9.9% when WaMu is now at 21.99%.

I also love the customer service at the credit union. The people are so friendly when I walk in. The one I joined also has a coin machine (like Coinstar, but you don't have to pay any fees), so you can collect your change and then put it in your savings account. Brilliant!!

I am much happier with my credit union, and as you said, it's well worth the time to make the switch! No more banks for me!


Totally agree, Kevin. We fired our bank 10-15 years ago after they made their contempt for us quite clear over problems with our account & their refusal to make things right. The fact that we had been customers there for over 10 years meant nothing to them. Screw them.

We've also taught our kids that credit unions were the place to go for all personal banking, first credit cards, etc. Skip the banks and the come-ons from the campus credit card predators. Most students at public universities or colleges will be eligible to join their schools' credit unions; those at private schools may also be eligible although I'm not as familiar with that situation.

Finally, THANK YOU SO MUCH for this blog and for your persistence. You are doing the public a great service by providing this information & safe zone for commenting.

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About Me

Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.

My Story

Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.

Good Morning America tells my story.

The Goal

I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.

Success

I am proud to say that this blog's unyielding demand for change led to an important amendment in the final Credit CARD Act signed by President Obama on May 22, 2009. Despite this major accomplishment, there is still more work to be done.

View video of bill hearing in Maryland

Testifying at a bill hearing in Annapolis, Maryland

Speaking Engagements

In an effort to educate as many people as possible about financial management, especially about how to manage the current credit crisis, I have begun to speak around the country at colleges, universities, corporations, chamber of commerce meetings, congressional hearings, trade organization meetings, etc. Having acquired a wealth of information that will help to empower people and to improve their financial future, I feel that sharing this information is the least I can do to make a positive impact. For information on my availability for speaking opportunities, please send an e-mail to Jennifer Silverman at jennifer@silvermanworldwide.com.


Speaking at a university

Disclaimer

All information provided on NewCreditRules.com is provided for information purposes only and does not constitute or substitute for professional financial advice. Information on NewCreditRules.com is subject to change without prior notice. Although every reasonable effort is made to present current and accurate information, NewCreditRules.com makes no guarantees of any kind. This web site may contain information that is created and maintained by a variety of sources both internal and external. These sites are unmoderated forums containing the personal opinions and other expressions of the persons who post the entries. NewCreditRules.com does not control, monitor or guarantee the information contained in these sites or information contained in links to other external web sites, and does not endorse any views expressed or products or services offered therein. In no event shall NewCreditRules.com be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods, or services available on or through any such site or resource.

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Great Resources

  1. ChangeInTerms.com

  2. Complaints.com

  3. ConsumerAffairs.com

  4. Consumerist.com

  5. CreditMattersBlog.com

  6. CreditSlips.org

  7. DefendYourDollars.org

  8. Epinions.com

  9. GotaClassAction.com

  10. My3Cents.com

  11. PlanetFeedback.com

  12. RipoffReport.com
* List provided by ChangeInTerms.com.


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