Debt Reduction Tips - Credit union vs. Bank

Learn how to reduce or eliminate you debt with this instructional video - What is the difference between a credit union and a bank?

Host: What is the difference between a credit union and a bank? Kandance Beamon: There are many differences between credit unions and banks. Credit unions are not for profit financial cooperative. Banks are for profit corporations. Credit Unions are government by valuing to a Board of Directors. When revenue comes to the credit union returns on them within a form of better rate from fees, when revenue is returned to the bank shareholders would pay first and then whatever money is leftover is cut within the organization is profit. The unique thing about credit union is that when you join a Credit Union, you have a voice and you have a vote. You become a member of that Credit Union which means that you own a share of that Credit Union. So if you decided that you want to run for our Board of Directors, you have that option. You can have your names submitted on the ballot and you can run for that position. With the credit union of the two, we talk a little differently. We refer to our customers as members because they are a member of the organization. If there is something about the credit union that they don’t like, they can pick up the phone and actually talk to the CEO and discuss whatever issues that they might have going on. So those are the major differences between the Credit Union and the bank.