When it’s time to open a checking account or secure a car loan, you may think of a bank as the first place to go for these services. However, a growing number of consumers have turned to credit unions for a different way to meet their financial needs. Credit unions have been around for 110 years in the United States. If you’re not familiar with them, here’s a helpful guide on how they differ from banks.

What Makes Credit Unions Different From Banks

Member-Owned

Unlike banks, credit unions are nonprofits owned by the people who join them. By paying a small, one-time fee, patrons can belong to the credit union for life. Credit unions are formed to serve a wide variety of demographics with unique needs such as teachers, entertainers, military personnel, and entire counties. Their membership status allows patrons to help make decisions for the good of the credit union such as offering loans to under-served communities. Banks are typically run by a paid board of directors who don’t share their decision-making powers with their customers.

Lower Fees & Higher Rates

Credit unions typically have lower fees than banks. Services such as overdraft protection, paper checks and ATM withdrawals at credit unions tend to be cheaper than those offered at banks. Credit unions are also known to offer very competitive rates on savings accounts and car loans, compared to banks.

Personalized Service

Credit unions also have a reputation for offering more personalized service. Staffers take the time to get to know members and their unique financial situations so that they can offer tailored products and services. These connections are also important when it comes to applying for loans. Lending officers generally process loan applications and make decisions in-house.

These are just some of the most common differences between credit unions and banks. If you’re seeking an alternative to how you do your everyday “banking,” Mohave Community Federal Credit Union is eager to be that financial source. The Kingman, AZ-based nonprofit is open to all residents of Mohave County and their family members. If you have questions about joining the credit union, call (928) 753-8000 and a friendly representative will gladly assist. Visit the website to learn more about the full suite of products and services.