Great Article on Credit Unions

For the procrastinators

It really is a great article explaining why it is better to use a credit union. If you'd rather have a video, listen to Bill Maher explain why you should.

I know credit unions are not the most convenient. There aren't as many locations (good reason for this explained below), their hours aren't as good, their online and phone options might not be as flashy, etc., but they really are a much, much better deal. Their credit cards, mortgages, personal loans, and auto loans are quite a bit lower when it comes to rates.

Speaking of rates, all of the money made by them has to be plowed back into their business. They aren't doling out huge bonuses, buying corporate jets, furnishing CEO's offices, paying for ad campaigns, etc.; they're using that money to make services better for their members.

The lack of locations is another good thing, as it costs MILLIONS (not even considering putting major locations in metropolitan areas probably costing more) to open a branch location, staff it, and put the lights on. So, they are not wasting your money on desks, carpeting, lights, salaries, etc. at a location that might not be all that busy; they're using your money to give loans to fellow members, make their websites better, and to provide better services to you.

Many of them also operate in massive credit union networks that will give you the option of getting to free ATMs on other credit unions' networks. Mine, MCU, has few branch locations, but I can withdraw money, fee free, at the ATMs in any McDonald's. Those are everywhere, so I'm never really struggling to find an ATM.

Plus, since I'm with the City's bank (MCU), I actually get my paychecks direct deposited a day earlier than people not using MCU. That's a nice little perk.

There is one good "bank" option; USAA. They have excellent service, a stellar reputation, and a military background (you don't have to be in the military to join their bank, however) that provides many benefits. I have not personally dealt with them, but I have read more than a few praises of their excellence.

So, please, just do it. The hour it will take to do everything (open the new account, close the old one, set up your auto drafts and direct deposits, etc.) will pay off in spades when you get great rates on a loan down the road, not to mention the fact you will be taking ammunition out of the hands of the very corporate banks that shot holes in this economy in the first place. You won't regret it.