Posted by Eric C on October 15, 2002 at 22:46:39:
If you’re asking which is best for you to use, the answer is – it depends.
Credit Unions have become much more competitive over the past decade or so and many have programs that are hard to beat from a consumer’s viewpoint.
Banks, on the other hand, are geared far more toward business customers. They like repeat business.
You need to ask yourself a few questions:
Am I an investor (primarily passive - every once in awhile) or a businessperson (constantly selling, trading, rehabing, etc)?
What are my credit needs? How much? What terms and conditions will be required? How often?
How far will my business plan take me?
I can’t answer those questions for you, but I can say, that banks fill my needs quite nicely. I do have some accounts at Credit Unions (mostly for PR), but the majority of my business is focused on a few banks around the country (both large and small).
I’ve spent a great deal of time selecting these institutions, developing a close rapport and building a good track record. And I don’t really care if the ATM fees are higher or not, or whether the bank has a branch close by. Convenience is not the issue – neither is cost.
What is important is their ability to fund my business plans. Simple as that.
When they can no longer do that (or are unwilling) – I change institutions.