Unlike traditional banks, credit unions are cooperatives, and they strive to support and advocate for their members (customers). Unfortunately, many people, who are eligible to join a credit union can fall prey to several of the common misconceptions surrounding credit unions.
In reality, credit unions provide their members with most of the same financial product and services and online access that traditional banks do, and also have so many additional benefits.
One such credit union is First Trust Credit Union in Northwest Indiana (NWI).
First Trust Credit Union is a NWI credit union with branches in Michigan City, La Porte, Valparaiso, and Wheatfield. As a not for profit entity, First Trust’s main mission is to provide the best financial support to its members.
“Credit Unions are all about ‘People Helping People,’” said First Trust Marketing Director, Dorene Martinson. “We provide modern financial products and services that a bank would provide, including our user-friendly It’s Me 247 online banking system, and the First Trust Mobile App to keep all your banking needs right at your fingertips.”
Let’s address and correct some of the most common misconceptions that exist about credit unions today. Here are some facts:
Credit unions are NOT difficult to join
Credit unions view their clients as members, and membership is easy to come by. For example, First Trust Credit Union is open to anyone living or working in La Porte, Porter, Jasper, Newton, or Pulaski Counties. If this broad criteria still doesn’t include you, membership is also available to any family member of an existing member of First Trust Credit Union.
Another key difference between banks and credit unions is some of the perks that come with membership. Since First Trust is a not for profit organization, any additional earnings are returned to members as possibly better loan rates, lower/fewer fees, and improved services.
“Credit Unions are overseen by a volunteer Board of Directors, while banks are overseen by shareholders,” Martinson said. “Credit Unions do not have to turn a profit in order to compensate a governing body, therefore our profits can go back to our members.”
Members of a credit union also have a say and vote on the credit union’s Board of Directors as well. All the members with a savings and/or checking account are member-owners.
Credit unions offer most of the same products and services as banks do for their members (customers)
Credit unions, such as First Trust, offer all types of bank accounts, loans, and other services for their members. Offering auto loans, mortgages, home equity lines of credit, and traditional savings/checking accounts name a few. First Trust also offers many types of accounts for members to choose from, including Christmas Club and Vacation Club accounts. In addition, many services are offered such as Online Bill pay, Direct Deposit, Payroll Deduction, Overdraft Protection, Debt Protection on loans, and more.
One final advantage of a credit union not to be overlooked is the amazing customer service it can provide. Because credit unions are traditionally smaller than banks, they have the ability to spend time with their members in order to get to know them on a personal level.
Credit unions have as many online banking features as larger banks
First Trust Credit Union provides a robust list of online options for its members. With their It’s Me 24/7 online banking program, members can access their accounts at any time and anywhere, review transactions, and transfer funds. Members can also access ‘SAVVY MONEY,’ the credit union’s free online credit report and credit score program, where members can monitor and view their credit score daily without a negative impact on their score.
This online access is also paired with First Trust’s mobile app. The app puts all of the online features in the members’ hands as well as gives them access information to all available shared branches, and other perks such as the convenient instant debit card lock/unlock feature. “The debit card lock/unlock option is one of my favorite features of our debit card service,” Martinson said .”Not only is it convenient for avoiding fraudulent activity on your card if you lose it, but you can ‘turn off’ your card if you just misplace it for a brief period of time, and then instantly ‘turn it right back on’ when you find your card.”
Credit unions are useful locally and beyond.
Another misconception is that credit unions are so small that they are only useful locally. This is simply not true. First Trust Credit Union is a member of the shared branching network, with a very large number of other credit unions. Credit unions involved in this co-op network provide nationwide, fee-free access for their members.
“First Trust is part of the shared branching network, which provides over 30,000 ATM locations and 5,000 branches nationwide for our members to utilize if necessary,” Martinson said. “Because credit unions are generally smaller than the big name banks, It’s our (credit union) way of providing more brick and mortar locations to provide that convenience for our members.”
Credit unions are insured by the government.
Similar to traditional banking institutions, credit unions are viewed by the federal government as financial institutions. Therefore, savings and deposits made through credit unions, like First Trust, are insured by the National Credit Union Administration (NCUA) up to $250,000 at no cost to the account holder (member).
“In addition to the insurance we have through the NCUA, First Trust goes above and beyond by purchasing an additional $250,000 insurance per member through Excess Share Insurance, which gives every member up to a total of $500,000 in insurance, and demonstrates how First Trust is truly invested in protecting our members’ finances,” Martinson said.
Martinson added that she enjoys speaking with the community about credit unions, their philosophy, and what they have to offer so that more people understand the benefits of banking with a credit union. She stated that she hopes to educate as many people as she can so that they too can experience the “credit union difference.”
To learn more about First Trust Credit Union and all the products and services it has to offer, visit its website at firsttrustcu.com.
