Banks vs Credit Unions - Posted by Joe

Posted by Eric C on October 15, 2002 at 22:46:39:

Hi -

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.


Eric C

Banks vs Credit Unions - Posted by Joe

Posted by Joe on October 15, 2002 at 15:45:18:

I am looking for a good place to set up an account because I recently purchased a rental property. I have heard that a credit union is a good place to do this, but I cannot seem to find any additional benefits in doing so.

What are the benefits of a credit union versus a bank? As ar as I can tell, they offer the same services with less locations. What am I missing?