8 credit union myths debunked

Credit Union Myths with Moxie

If you ask around, you’ll find there are a lot of misconceptions about credit unions. Some of them have been around for decades. Some are more recent. But either way, we’re here to set the record straight. Below is a list of the eight most common credit union myths. Let’s separate fact from fiction, shall we?



It’s hard to join a credit union.

Truth: Actually, it’s never been easier to become a credit union member! It may have been hard in the past, but the times they are a-changin’. While credit unions still have eligibility requirements, many allow you to join based on where you live, work, worship, volunteer, and more.



Credit unions don’t have convenient locations.

Truth: How’s this for convenience? Even though credit unions may not have as many locations as big national banks, many of them are part of shared branch networks like the Co-Op Network that offers more than 5,000 locations across the country.



It’s hard to find an ATM.

Truth: Remember that Co-Op Network we just mentioned? They also offer surcharge-free access to 30,000 ATMs as well. Problem solved. Myth busted.



Switching from a traditional bank is complicated and more trouble than it’s worth.

Truth: Making the switch is really quite simple. Over the years, credit unions have figured out how to streamline the transition process. Here at SC Telco, we even created a customized Switch Kit to walk you through the process step-by-step.



Credit unions aren’t high-tech.

Truth: With innovative options like online banking, mobile apps, and remote deposit, most credit unions offer the same technology as traditional banks. Just because they built their reputation on personal service doesn’t mean credit unions are behind the times.



Credit unions only offer savings accounts.

Truth: This myth could not be more wrong. Today’s credit unions offer a full slate of banking services, from checking and savings accounts to mortgages and auto loans. If you’ve got a financial need, there’s a good chance you’ll find the solution at a credit union.



Credit unions don’t offer attractive rewards programs.

Truth: Big banks love their rewards programs, don’t they? It makes sense. If all your profits are paid to shareholders, you have to come up with perks of some kind to keep your customers happy. Sure, credit unions offer their fair share of rewards programs for checking accounts, credit cards, and such. But let’s be honest—what could be more rewarding than higher rates on savings and lower rates on loans?



Credit unions aren’t as safe as banks.

Truth: Might as well debunk this one while we’re at it. Just like bank deposits, credit union deposits are federally insured up to $250,000. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits, and the National Credit Union Administration (NCUA) insures credit union deposits. Either way, your funds are protected. Sounds pretty safe to me.

Learn more about the benefits of becoming an SC Telco member.

So, credit unions offer easy access, convenient solutions, competitive programs, and outstanding security. Who knew?! Well, we did—but that’s not such a big deal. Now you know, and that’s what matters most! Get in touch with us to join SC Telco today!

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