topic Re: Are Credit Unions Not Consumer Friendly Anymore in Personal Finance

Are Credit Unions Not Consumer Friendly Anymore

MB2714 — Mon, 02 Dec 2019 04:04:30 GMT

I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

Re: Are Credit Unions Not Consumer Friendly Amymore?

Anonymous — Mon, 02 Dec 2019 04:00:46 GMT

I don’t think you can paint either CUs or Banks with a broad brush. These are some awesome CUs (In my experience, NFCU, PSECU, even PenFed) and there are some awesome banks too (I don’t have one complaint about PNC or Schwab). There are some bad ones of each too.

In my experience, the space that CUs win in is interest rates. Whether it’s interest they pay you or interest they charge you on CCs, loans, etc.

One can’t go wrong with a balance of each accounts that cater to your needs (and to your benefit).

Re: Are Credit Unions Not Consumer Friendly Amymore?

MB2714 — Mon, 02 Dec 2019 04:06:24 GMT

That is true a good balance of both. I have a bank and credit union for banking. I also have credit cards/loans with major lenders and a loan with a credit union, it just seems that credit unions seem more of a hassle these days than they used to be.

Re: Are Credit Unions Not Consumer Friendly Amymore?

Brian_Earl_Spilner — Mon, 02 Dec 2019 04:22:27 GMT

That's how it is with my main credit union. They wouldn't even give me a secured card unless I got my scores in the 630-640 range, which is ridiculous because I wouldn't need a secured card at that point. When I get a chance, I'll be moving my money and direct deposits elsewhere.

Re: Are Credit Unions Not Consumer Friendly Amymore?

Brian_Earl_Spilner — Mon, 02 Dec 2019 04:23:33 GMT

They also wouldn't qualify me for a car loan. Neither did NFCU, but chase did. 🙄

Re: Are Credit Unions Not Consumer Friendly Amymore?

tcbofade — Mon, 02 Dec 2019 10:07:17 GMT

Depends on the CU, I suppose.

We've got several local ones here, and one has gotten worse every year. Trying too hard to be a big bank. Another one has been simply marvelous for our entire relationship and treats my wife the way that we expect.

I've still got a car loan with that first CU, but after that, I think that we'll be done with them.

As someone else has already mentioned, NFCU is simply awesome!

If your credit union isn't working for you, go find one that does.

Re: Are Credit Unions Not Consumer Friendly Anymore

SouthJamaica — Mon, 02 Dec 2019 12:45:36 GMT

@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

No, I don't think you can generalize about it.

Some are good, some are not so good. And things change.

Re: Are Credit Unions Not Consumer Friendly Anymore

Andypanda — Mon, 02 Dec 2019 16:17:00 GMT

It.s a case by case scenerio. I get charged no fee's from well's fargo (due to the fact I have a large amount of holdings at Wells fargo advisors, They even reinbursed me for 3rd party atm fees,) If I did more then have some CDs at at one CU Iuse, I would get charged a whole bunch of fees.

Re: Are Credit Unions Not Consumer Friendly Anymore

Jnbmom — Mon, 02 Dec 2019 16:28:37 GMT

I have the highest lines with my credit unions, they are much much more generous than any of the big banks out there.

I am quite pleased with credit unions .

Re: Are Credit Unions Not Consumer Friendly Anymore

VPExecutive — Mon, 02 Dec 2019 18:45:08 GMT

@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

With the explosion of online banks, I don't believe it's fair to compare today's credit unions versus most banks. You have banks like Charles Schwab, CMA's like Fidelity's, and online only banks like Capital One 360... None of these companies have bank branches like credit unions have, so no overhead costs involved, which can result in lower fees, perhaps unlimited ATM reimbursements, and higher interest paid.

Your average credit union is sure to have lower loan rates, higher dividend rates, and a more personal approach to banking than the big 5 (Wells Fargo, Chase, BoA, Citi, and U.S Bank). A lot of credit unions also pay ATM fees back (whereas at banks like Chase and Citi, you have to have a significant amount of deposits/investments before that happens).

Federal credit unions are more conservative on loans for a few reasons. First, the maximum interest rate on a loan is 17.99%, whereas the large banks can get away with pretty much whatever they want (a lot of people have CC's in the mid 20% range). The credit union is making less on loans and would want to have a higher underwriting criteria to make up for the risk. Second, credit unions are ran by member deposits and payments on interest... Other members do not appreciate when one member defaults on a loan; thus, wasting the shared money a credit union runs off of. When you put $1,000 in a savings account at a credit union, the credit union takes that money and loans it out to another member in the form of a loan at a much higher interest rate.... It doesn't just sit there idle. Third, credit unions don't want to be in the same positions the banks were back in 2008 (become at risk of failing without a government bailout) so they need to be more careful with who the lend their money to and how much they're lending out.

Re: Are Credit Unions Not Consumer Friendly Anymore

AverageJoesCredit — Fri, 06 Dec 2019 20:36:06 GMT

My local bank is huge where i live but they stink imo, blacklist harder than Chase and Amex combined lol. Their ccs are bleh too. To be fair i DID burn them but sheesh i wish they'd give second chances like most

Re: Are Credit Unions Not Consumer Friendly Amymore?

Anonymous — Wed, 04 Dec 2019 04:27:12 GMT

@Anonymous wrote:
I don’t think you can paint either CUs or Banks with a broad brush. These are some awesome CUs (In my experience, NFCU, PSECU, even PenFed) and there are some awesome banks too (I don’t have one complaint about PNC or Schwab). There are some bad ones of each too.

In my experience, the space that CUs win in is interest rates. Whether it’s interest they pay you or interest they charge you on CCs, loans, etc.

One can’t go wrong with a balance of each accounts that cater to your needs (and to your benefit).

I agree there are both banks and credit unions that are not the least bit friendly. I have mentioned the bank across the street from our office. It would not let me do on line banking because my score at the time was not 750. I have suspected that it takes either an 850 score or US Treasury notes as collateral for loans only. I keep $100 in their bank so if I have an urgent need for cash I can walk across the street and get a few quick dollars with no fee.

Re: Are Credit Unions Not Consumer Friendly Amymore?

MAZDA3 — Wed, 04 Dec 2019 06:52:41 GMT

It definately depends on the CU. While NFCU is snail slow at doing simple things like applying a payment to a credit card (no idea why a payment on Saturday can't post immediately), their customer service is fantastic. They no longer offer disability insurance on car loans so I went with a smaller local CU.

I think as the smaller ones get bigger, they experience growing pains, and that passes onto the member.

Re: Are Credit Unions Not Consumer Friendly Amymore?

calyx — Wed, 04 Dec 2019 13:52:09 GMT

I'd agree with the sentiment that you can't broadly paint all banks/CUs the same...

I have been exceedingly thrilled with my CU. When I started banking, my credit scores were really low and they wouldn't give me a "regular" checking account (interest bearing, checks, overdraft protections), but would set me up with a simpler one (I've since 'graduated' to better checking). It let me bank and build a relationship with them - I could bank, they could keep their risk/exposure low. A year later, when I went to get an auto loan, I got their best rates, even though my score wasn't great, because I could explain what was on my credit report and they had that year of good history. They've been super the whole time I've dealt with them.

I've had membership at another CU for 10 years, but I don't like their fee structure for checking (they charge for checking, though they donate that money to the community - it's not the worst). I keep my share and some other accounts with them, though, because for a lot of non-checking needs they're pretty much the best around, have good interest rates, but very conservative and geolocked. They've always been very easy for me to work with for other products, and I appreciate their service immensely.

I've always thought of credit unions as more relationship and community based, though I do think when they start getting bigger, I could see how impersonality starts.

Re: Are Credit Unions Not Consumer Friendly Anymore

FlaDude — Wed, 04 Dec 2019 18:33:39 GMT

@MB2714 wrote:
Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

I don't know that much has necessarily changed. I've been with my CU for over 40 years and during that entire time they have been conservative, denying credit or giving low CLs where other lenders gave loans or cards with high credit limits.

Re: Are Credit Unions Not Consumer Friendly Anymore

joltdude — Fri, 06 Dec 2019 17:52:55 GMT

Yes.. iv noticed that some CUs have gotten a bit less "member oriented" and more... Fee happy....and acting like the major banks using ODs as as a revenue source... making intentionally posting withdrawals before deposits during the overnight reconciliation... Far cry from the days of "helping members"

-J

Re: Are Credit Unions Not Consumer Friendly Anymore

Namaste7 — Sun, 08 Dec 2019 16:18:56 GMT

@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

At the moment, I am growing my relationship with CUs opposed to the national banks. Right now, I find BofA is in a nickel-and-dime moment. They have done everything to degrade the original free checking account that I opened well over a decade ago. Unless a minimum balance is maintained or DD, or Preferred Status is maintained, the account has a maintenance fee. There are fees to send or receive wires. I believe they charge OD transfer fees now from another account. Fees for excessive counter visits. Higher fees for certified checks. They no longer offer money orders. Now, I may not peruse the latter items as frequently, but the theme is consistent--most non-DD/swipe transactions have fees.

Whereas, with my CUs and investment bank accounts, there are absolutely zero fees for the account, incoming wires, outgoing wires (Fidelity only), OD transfers, my CU has great terms on a PLOC that also backs as a free-free OD protection account. They also offer decent savings rates either through a CD/certificate.

At the end of the day, you have to find the right mix of creditors that meets your needs and is receptive to your credit profile, D/I ratio, and does not assess you as a high(er) credit risk. Excluding Navy FCU, I really wonder if the approval rates for similar profiles are that different between a BofA or Citi versus PenFed or a regional CU.

Re: Are Credit Unions Not Consumer Friendly Anymore

Anonymous — Fri, 03 Apr 2020 19:09:22 GMT

which CUs u got to give u good limits and experience

Re: Are Credit Unions Not Consumer Friendly Anymore

AnimatorProcrastinator — Sat, 04 Apr 2020 00:59:47 GMT

There are some credit unions that call themselves "credit unions" but mainly have the characteristics of a bank. Many have fees for checking/savings account, miniscule 0.05% interest rates, and credit card rates no better than big banks. It sounds like you had an experience with a bad credit union that was really just like a regular bank. I recommend joining Digital Credit Union or another like NFCU if eligible. You will see the difference with a good credit union.

Re: Are Credit Unions Not Consumer Friendly Anymore

Green456 — Sat, 04 Apr 2020 03:08:57 GMT

@MB2714 wrote:
I don't know if this is the right section, but it seems to me that Credit Unions do not seem to be as consumer friendly anymore at least where I live. Many have tons of fees some more than banks. Also Many credit unions seem to be more conservative in lending than the banks and want your credit to be spotless where as banks seems to be more lenient these days. Credit Unions are going strictly by the score and are all policy. Has anyone else noticed this where you live and what do you think has caused this shift.

Credit Unions are a little bit over hyped in here. There are some good ones out here thou. From what I heard NFCU is great. Personally I got nothing but exceptional service from BECU. Some can be riddled with fees like they took a page out of BofA. Some can have some useful tools like LMCU true direct deposit. Some credit unions even thou they are big, they run skeleton crew, so there is only one person that can unlock account when you are on your trip in Europe. I must have had at least 10-12 different credit union accounts. Now Im down to two. I think the most important aspects for me are big enough customer service support, good customer service support and no fees. So I settled with BECU for foreign ATM refunds and amost no fees, Ally for good savings and CD rates with great customer service as well and BoA for branch access and investing with Merrill Edge.