What is a major advantage of using credit unions?

A major advantage of using credit unions lies in their ability to offer lower interest rates on loans compared to traditional banks. This advantage stems from the fact that credit unions are not-for-profit financial institutions, which means their primary goal is to serve their members rather than to generate profits. As a result, credit unions can pass on savings from lower operating costs to their members in the form of lower interest rates for loans, such as auto and home loans, as well as more favorable terms on credit cards.

Additionally, credit unions often offer higher interest rates on savings accounts and better rates overall, making them attractive for those looking to save as well. This member-focused approach not only enhances the financial products available but also fosters a sense of community and personalized service, further distinguishing credit unions from traditional banking institutions.