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Dump my bank, sign up w/ a credit union?

  1. Jan 26, 2009 #1
    I'm sick of the greed that comes w/ having my money in a big bank. Anyone have their money in a credit union? Is convenience a problem?
  2. jcsd
  3. Jan 27, 2009 #2
    I've had my savings and checking accounts in credit unions for years (all the state uni's I've been at have had a credit union association). I even have an extra saving account at a non-university credit union (emergency funds or saving for down payment on house/car/etc). I find them nice. Often they have affiliations with other credit unions so you don't have to pay when using the other credit unions ATM's. I haven't yet had to go for a car or house loan (we rent and for myself, I tend to always look to buy used cars flat out)... so I'm not sure how rates go there (although I've heard they're decent).

    Note however: credit unions can still issue hefty fees, especially if you do something dumb like overdraw on your checking account (my husband did this once).
  4. Jan 27, 2009 #3


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    At least a person can go into their credit union and talk to a manager face to face. Talking to a branch manager of one of the big banks is futile.

    If a person overdraws on a checking account go in and talk to them. If you have been a good customer tell them that you want to set up an over draft protection program and they will usually wave the fees.

    I bailed out from the big banks when they suddenly increased the interest rate on a credit card from 9% to 23%. They claimed that I had made an online payment late.

    This was shortly after they had slyly changed the time for overdue payments from 12 midnight to 12 noon of the due day.

    In my case the people in India who process their data didn't allow for the time change (or lack of) in Arizona. I made the payment at 11:05 AM. they had it as 12:05 PM.
  5. Jan 27, 2009 #4
    I also use credit unions for all my banking needs. Never had any problems with them.
  6. Jan 27, 2009 #5


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    Try to avoid the low interest rate balance transfer deals on credit cards. They sound good but all of your payment applies to the lower interest rate balance.

    None goes to any previous or higher rate balance you may have on a credit card. It just sets there and compounds.

    They will not even allow you to make a cash payment to pay off the higher interest rate balance. If you make a double payment it all goes on the low rate balance.

    Congress just made some big changes in the credit card business, but they don't kick in for several years.
  7. Jan 27, 2009 #6
    I love my credit union! I hate banks, and avoid them when possible. It does become a little inconvenient at times, but to not have the hassle all my friends complain about is great.

    I have always gone through mortgage brokers for my homes, and the only time I bought a brand new vehicle was back when the auto makers had killer deals that banks couldn't touch. But my credit card is through my CU. I actually have credit cards through banks, but I never use them, because they can raise my interest rates just for finding out my shoes don't match my handbag.

    So no, I don't use my CU for everything, but it is so so SO worth it. I would rather drive a few more miles to go to my CU branch than have the convenience of a bank around the corner.
  8. Jan 27, 2009 #7
    What is a credit union?

    Banks are now officially evil according to everyone. :smile:
  9. Jan 27, 2009 #8


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    I've used both, my Credit Union was great, but I now use a small bank that knows me and my daughter personally. When I call in, I don't even have to give them my accout number. Mary answers, I say hey, it's Evo, would you transfer $200 into the Evo Child's account? She says ok, done.
  10. Jan 27, 2009 #9

    At a very basic level, credit unions are "not for profit banks". All of it's profits go back to its customers. When you open up an account at a credit union, you are really buy "shares" of the business. Credit unions usually are much more customer friendly for loan terms and interest rates since they are not for profit, however, they usually have higher standards which must be met when they give out a loan.

    The credit union near my work sounds awesome. I can make a deposit online and they will immediately put that amount of money in my account. Then all I have to do is mail in the check to them.
    Last edited: Jan 27, 2009
  11. Jan 27, 2009 #10


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    Welcome to the "please transfer money into my child's account" club. :grumpy:
  12. Jan 27, 2009 #11


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    When I was a younger fella, I cultivated relationships with important people in the local savings bank. One day, I attended a real-estate auction with my wife shortly after we had bought a house and pretty much emptied our checking account furnishing it. I bought a house and land, and had to write a $3000 check to the auctioneer (on a Saturday), which I could not cover. That afternoon, I called the assistant loan manager at home and asked him to put $3000 in my checking account. He said "what did you do now?" and I explained why I needed the money. He put the money in my account and wrote it up as a personal loan, which would be converted to a lower-interest mortgage loan when the sale was consummated. I bought a house for $17K that I had previously offered $25K for and was offered at $27K when I made the offer.

    Nowadays, that savings bank is paying nothing on deposits, and their personal relations and customer service is pathetic. My wife and I currently have a lot of our "liquid" assets in credit unions, not because they are more generous in their interest rates, but because they are a bit more flexible, and their managers are a bit easier to access.
  13. Jan 28, 2009 #12
    Thanks that sounds awesome. I prefer the old Christian way, no interest on credit or anything else, only a charge to store your cash. Things were simpler back then. Islamists still do it.
  14. Jan 28, 2009 #13

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    My credit union refused to give me a first mortgage, despite having a FICO score so high that "we double checked it to make sure it wasn't a mistake". It turns out that they simply don't make first mortgages, even though they say they do, as the market is - or at least was - more lucrative in the second mortgage business. So I wouldn't jump to the conclusion that Bank = Evil and Credit Union = Good quite so fast.
  15. Jan 28, 2009 #14
    Banks are evil over here, they are being sued as we speak, the lot of them, for dodgy practices.

    That said any money lender is going to be perceived as somewhat evil, nature of the business. I mean look how much fat cash the Jews made out of the Christians not charging interest, no wonder the Church kept confiscating their land and businesses. :wink:
  16. Jan 28, 2009 #15


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    Over here, I can still talk to my bank manager, and I'm with one of the big banks (there aren't really any small banks in the UK). I never really understand why people here complain about banking charges so much. I've never had to pay one, mainly because I've called up, or gone into my branch whenever I've gone beyond my overdraft, apologise and transfer money from elsewhere into the account. They always waive the charges.. I dunno, perhaps I'm just lucky!
  17. Jan 28, 2009 #16
    Maybe lucky. My bank charges $2.00 for every ATM transaction that you do at an ATM machine not at their bank. On top of that, the ATM that you use, usually charges $2.00 to $3.00 for each transaction, so before you can even get your money out you already have to pay $5.00. That means in order to make an ATM withdraw worth it, you need to take out at least $100 or more.

    The credit union I am interested in has no fees whatsoever for an ATM withdraw not matter where I go.

    My bank basically nickel and dimes you to death.
  18. Jan 28, 2009 #17


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    Wow, I wouldn't put up with that! There's no fees here from either side for withdrawls from an ATM at any bank.
  19. Jan 28, 2009 #18
    Must be, I could turn up with a shotgun and they wouldn't waive my fees. Perhaps it's because you are a student? Banks treat students well generally. I don't get charged much, but when I do it's a pain in the arse quite frankly, even if you're hyper cautious you occasionally have something go through a little to quickly or something you didn't account for.

    Charging for using ATM's is a liberty, there's no need to charge for a totally automated process, certainly not $2-$5 anyway. :rolleyes:
  20. Jun 24, 2010 #19
    Resurrecting an old thread, but does anyone have a credit card through a credit union? Can you use it anywhere in the world? I'm so sick of all the big banks, that I'm trying to purge them from my financial portfolio. My major credit card issuer is now charging me a usurious rate of 23% on my credit card even though I have good credit. I got lazy and never went through with transferring to a credit union, but now I definitely have the motivation.
  21. Jun 25, 2010 #20


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    We have accounts at a major bank and local credit union. The credit union pays higher interest rates on our savings. They offer a credit card with much lower rates than the banks.
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