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.
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.
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.
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.
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"
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.