A credit union is a cooperative financial institution that is owned by its members. It provides banking services to those who are part of the credit union or its network. Credit unions are different from traditional banks because they are not governed by stockholders, so profits are shared among the borrowers, members, and employees.

Credit unions have many benefits for customers. They offer lower interest rates on loans which leaves more money in your bank account to spend on other things. Credit unions also have better customer service then traditional banks which makes these organizations more desirable for your money. Unlike private lenders who often come with high interest rates and hidden fees, credit unions don’t use tricks to take advantage of their customers. They also have better repayment plans than most private lenders because they take into consideration your income and expenses while setting up.

Some people have credit scores that are below 600, so they need to do something to improve their credit score. Thankfully, there are private lenders and credit unions. But which one is better?

A private lender will charge high rates of interest for loans that are over $5,000. Credit unions have low interest rates that are comparable to traditional banks many times it works even cheaper than traditional banks. The best part about it is that you don't have to pay an origination fee when you get a loan from a credit union. One of the main reasons people think credit unions are better is because they feel more personal and that their money is being managed by someone who cares about them.

In the past, people have also believed that these loans were only for low-income individuals but now they know that you don't need a good credit score to qualify for a loan with a credit union. They also provide specialized mortgage, student, and auto loans for their members.

Many credit unions offer checking accounts with no minimum balance and no monthly service charges. Depending on the credit union, the fees for banking errors, such as a bounced check, may be lower than a bank, as well.

Most credit unions cannot compete with banks when it comes to convenience (access to ATMs and branches) and technology like mobile banking. Many credit unions cannot compete with online banks in terms of technology. Credit unions may offer lower interest rates on loans, but the array of financial products may be limited in scope compared to big banks.