On the hunt for credit

Market Watch ^ | 4-27-08 | Andrea Coombes

[RKBA Democrat]

The Web sites may not look quite as polished and the eligibility requirements may give you pause, but when it comes to low fees and generous rates, credit unions match banks head-to-head.

It's not that you'll find drastically better deals at credit unions, but their products should be among the options you consider when searching for savings and checking accounts, CDs, small-business, mortgage and auto loans, and credit cards -- particularly now, given that credit unions in large part sidestepped the subprime crisis.

Consumers should "include credit unions in their comparison shopping," said Greg McBride, senior financial analyst with Bankrate.com.

Currently, credit unions pay an average about 2.97% on one-year certificates of deposits, a tad better than banks' average of 2.36%, while credit unions' one-year adjustable rate mortgages average 4.88%, besting banks' 5.86%, according to Datatrac, a market-research firm focusing on bank products.

For a standard credit card, credit unions charge an average interest rate of 11.9%, compared with banks' 13.6%. And credit unions charge lower fees, on average.

[RKBA Democrat]

Good article on credit unions. As with anything, you need to shop around. The membership restrictions are not so much of an issue anymore. There are good credit unions out there that you can join with a minimum of effort.

And yes, credit unions are not taxed while banks are. And yes, it's unfair. And yes, I'll be sure to cry a river for the megabanks.(/s)

[RKBA Democrat]

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[metmom]

Thanks for the ping

[G.Mason]

Bump

[Beagle8U]

“There are good credit unions out there that you can join with a minimum of effort.”

Most company type credit unions require that you be an employee of the company to join. My CC told me how to get around that rule.

An employee can have a joint account with anyone they wish and as many accounts as they wish. I was told to open a joint savings account for $5 with the person I wanted to make a member.

Once the person is a member they can open separate accounts in just their name and will always be a member as long as they have an account in their name. You can then close the joint account.

I'm a member of a large electric company's credit union and have never been an employee. Its a great deal that no bank can match.

I have a low ( 5.875%) fixed rate mortgage with them, but at the end of the year I get a dividend interest rate kickback that lowers it to ....Under 4%! I have no idea how, or why, they figure it based on shares ( of something?) because I own no stock in the company.

My only guess is that by having money go in the CC, that they in turn make money with, I have shares of stock in the CC?

[Beagle8U]

One other point about credit unions. Most credit unions have a 24 hr money machine and ALL of them I know of charge no fee for withdrawals from ANY other credit union.

I never, or seldom, use my own CC,s machine, but still pay no fees.

[RKBA Democrat]

That’s a clever approach.

You can also join Pentagon Federal by joining a military fellowship organization that then allows you to join the CU. They have the details on their website*.

With a little creativity, you should be able to join a very good CU.

*Caveat: I’m not a member of Pentagon Federal and can’t vouch for them personally.

[ladyjane]

I’ve used Pentagon Federal and they’re terrific.

I got a mortgage with them at a rate much lower than any others being offered. They frequently offer a special mortgage that has zero closing costs. Really zero, no appraisal, document or closing fee. You only pay for your local tax stamps.