Credit Union vs Bank

With PFCU, you'll get attentive service and a personal approach to doing business. We like to get to know you personally and spend more time answering your questions so we have a better understanding of what you want to achieve. You’ll also be able to speak directly with us when it comes to qualifying for a loan because we make our loan decisions locally and help you get the best rate for your financial status.

At a bank, service is often less personalized and more automated. It may be more difficult to get hands-on customer service and customized solutions. Qualifying for loans and credit lines will be mostly, if not entirely, based on your current credit score, regardless of any outstanding factors that might warrant an exception in the eyes of a credit union.

Banks are for-profit institutions. Their goal is to generate profits from their customers and transfer earnings to a small group of stockholders. Bank customers do not have ownership or stock in the company by default, though they may choose to invest. This means they are subject to whatever rates and fees the company chooses in order to maximize profits, often leading to higher rates and fees than credit unions. There are also no dividends rewarded as the company experiences profits.

Banks typically charge higher than credit unions for the same type and size of home loan. Since credit unions are not-for-profit, they return earnings to members as better rates and reduced fees, meaning your PFCU mortgage will likely come with lower closing costs and origination fees.

Credit unions offer similar financial products as banks, but they are more affordable. Most people consider a credit union for car purchases because the rate is normally lower than dealer financing and because commercial banks are normally a percentage point or two higher than credit unions.

Generally speaking, credit unions offer higher dividend rates and lower loan rates. This means your savings will grow faster and you will owe less money over the term of your loan. Credit unions also tend to charge less in fees and require no or lower minimum deposit requirements. Take a closer look at PFCU's rates and fees.