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Banks or credit unions? Which are better?

Jan 09, 2012 by Kinhung from San Diego, CA in  |  Flag
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Andrew Level 17

I wrote a guide about this topic. Go to: http://www.brightscope.com/financial-planning/advice/guide/1398/The-Benefits-Of-A-Credit-Union/# I spell out the benefits of a Credit Union.

Comment   |  Flag   |  Jan 17, 2012 from Omaha, NE

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Hi Kinhung,

I have found "better" to be relative based on concerns someone has. I have been a credit union member for over 25 years, but never realized LL the benefits until a few years after I joined. Andrew's guide is very accurate, especially when it comes to service. My experience has been that credit unions usuall provde more competitive interest rates (lower on loans, higher on savings) than banks because of their mission.

To specifically address your question re: a car loan, I'd like to relate my experience. At my credit union, they offer a car buying service. I found they were able to negotiate a good price for the car I wanted. Perhaps I could have negotiated a slightly better price, but it would have taken a lot of time and I had to replace my old car. Next, their auto loan rates were better than the local banks at the time. However, since I used their service, the rate was even lower. I saved time, money, and got a better deal than at the bank.

Good luck with your auto loan.

Comment   |  Flag   |  Apr 02, 2012 from Permanente, CA

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Neither is inherently "better." Each will offer unique features or services to meet your needs. Personally, i bank where it is most convenient for me to do banking.

1 Comment   |  Flag   |  Jan 10, 2012 from Boston, MA
Kinhung

If I wanted to get an auto loan (with good credit), would a bank or credit union be inherently better in that scenario?

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Flag |  Jan 10, 2012 near San Diego, CA

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