# Credit Unions vs. Banks **URL:** \ **Category:** Great Debates\ **Created:** [April 3, 2000, 6:05pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884 "2000-04-03T18:05:00Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Brian\_White](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@Brian\_White](https://boards.straightdope.com/u/Brian_White)\ **Post date:** [April 4, 2000, 5:54am UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/1 "2000-04-04T05:54:00Z")
What are the advantages of belonging to a credit union instead of a bank,if any? Are Federal credit unions any different/better than your regular,run of the mill ones? ---
**Author:** ![Action\_Jackson](https://avatars.discourse-cdn.com/v4/letter/a/c68b51/32.png) [@Action\_Jackson](https://boards.straightdope.com/u/Action_Jackson)\ **Post date:** [April 3, 2000, 6:05pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/2 "2000-04-03T18:05:00Z")
I belong to a federal credit union, most credit unions have lower loan rates and less paper work. * * * ILLEGITIMUS NON CARBORUNDUM EST ---
**Author:** ![egkelly](https://avatars.discourse-cdn.com/v4/letter/e/db5fbb/32.png) [@egkelly](https://boards.straightdope.com/u/egkelly)\ **Post date:** [April 3, 2000, 6:31pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/3 "2000-04-03T18:31:00Z")
One thing about STATE-Chartered credit unions-I lived in RI, and back in 1989, the collapse of several large credit unions nearly brought down the whole state banking system. If a CU operates within one state only, then it is exempt from many of the Federal banking laws-so BE VERY CAREFUL! This makes CU’s ideal for crooked management to rape and plunder their assets-and many in RI were NOT federally insured! ---
**Author:** ![tracer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tracer/32/20578_2.png) [@tracer](https://boards.straightdope.com/u/tracer)\ **Post date:** [April 3, 2000, 7:07pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/4 "2000-04-03T19:07:00Z")
My credit union is state-chartered, but fear not: The state it’s chartered in is California, which is the biggest, most bureaucratic state government in the U.S… ---
**Author:** ![Scylla](https://avatars.discourse-cdn.com/v4/letter/s/a5b964/32.png) [@Scylla](https://boards.straightdope.com/u/Scylla)\ **Post date:** [April 3, 2000, 7:00pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/5 "2000-04-03T19:00:00Z")
Tracer: Yes, those Orange county bonds were certainly a good deal, weren’t they ☹ ---
**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\ **Post date:** [April 3, 2000, 8:13pm UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/6 "2000-04-03T20:13:00Z")
I happen to like my credit union (and yes, it’s Federally regulated and Federally insured) fees and interest rates are lower and we’ve usually gotten approval for a car loan or second mortgage in a day or less. The only two glitches I’ve come across are that they pay lower interest than the more competitive banks (so we only keep a token savings account)and they only handle personal accounts – so when I wanted to open a business checking account they couldn’t help me. And my credit union is in a network that offers no ATM charges. Granted, they don’t have that many machines around the area, but there’s one near my home. * * * I understand all the words, they just don’t make sense together like that. ---
**Author:** ![tracer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tracer/32/20578_2.png) [@tracer](https://boards.straightdope.com/u/tracer)\ **Post date:** [April 5, 2000, 1:38am UTC](https://boards.straightdope.com/t/credit-unions-vs-banks/17884/7 "2000-04-05T01:38:00Z")
kunilou wrote: > [@](#): > > The only two glitches I’ve come across are that they [the Credit Union] pay lower interest than the more competitive banks (so we only keep a token savings account) Cripes, I’ve been putting all my money in my Credit Union accounts because I thought the interest rates were supposed to be _higher_ than accounts at a bank! I have _got_ to get my head out of the sand.