If you’ve heard that credit unions offer significant money-saving advantages over traditional banks, you might be wondering what exactly a credit union is and if joining one can help you fix your credit.
It’s important to note that every credit union is different – each provides unique benefits. But many institutions offer quality products that can help you on your journey toward managing your debt and improving your credit.
Because credit unions are member-owned, they offer services with people like you in mind. They often return their surplus earnings to members in the form of low or no fees.
Can a Credit Union Help Me Improve My Credit Score?
Becoming a credit union member does not improve your credit score by association. But taking advantage of the products, services, and resources offered by credit unions like PSECU, such as our share-secured Visa®, free credit score service*, and financial educational programming, could help you get your credit on track.
How Will Joining a Credit Union Help My Finances?
As a not-for-profit financial institution, credit unions typically offer an array of wallet-friendly products that can help you save money and pay off debt faster, which may allow you to more easily fix and build your credit. Check out the following four ways credit unions can help you save money, so you can pay off your debt and get your finances back in order.
1. Fewer and Lower Fees
Because credit unions return their surplus earnings to members in the form of low or no fees, this means members keep more of their hard-earned money where it belongs – with them. Even a small amount of savings goes a long way toward improving your finances when used correctly.
2. Low Interest Rates
Lower interest rates on loan products are one of the most significant benefits that most credit union members enjoy. Lower interest rates mean less to pay off in the future, so you can accrue less debt when you’re carrying a balance or taking out an installment loan. You can also pay off your bills more quickly since more of your monthly bill goes toward paying your actual debt – which gets you that much closer to being debt-free.
3. Secured Cards
Many credit unions, like PSECU, offer secured credit cards for members to help build their credit. With a secured card, you place funds in your account that you “borrow against.”
For example, if you put $1,000 into your account, you can charge your card up to $1,000. Different card companies have different requirements. For our share-secured Visa, you may set it up with a minimum of $500 and maximum of $2,000. It’s also important to note that the funds in your Regular share that secure your card cannot be accessed for any use. But although they’re “frozen” and unavailable for use, they’ll continue to earn dividends at the prevailing rate.
Since you need good credit to qualify for most traditional credit cards, a secured card can help you start building or rebuilding your credit history and score, so you can qualify in the future.
4. Free Money Management Resources
A credit union is more than a place to store your money or take out loans from – it’s a place you can turn to for financial guidance through every stage of life.
As a member-owned institution, a credit union aims to provide its members with benefits and resources that can help improve their lives financially. We offer an array of financial education resources on our WalletWorks page to help our members make smart budgeting, credit, savings, lifestyle, and security choices.
Our blog also offers financial tips for college students and young adults, parents, seniors, and everyone in between. Using our resources, you’ll learn about the latest financial facts and statistics, as well as actionable tips you can apply to save yourself money.
Start Saving Today with PSECU
We offer many benefits, discounts, and perks to thank you for putting your trust in our services. Some examples include:
- Member discounts such as Sprint and TurboTax® discounts, and more
- Savings of almost $1,000** per year with Money Back Banking
- Easy and convenient digital banking tools to manage your money anytime, anywhere
*PSECU is not a credit reporting agency. Members must have PSECU checking or a PSECU loan to be eligible for this service. Joint Owners are not eligible.
**You could save almost $1,000 a year when you use all our products and services. Estimated savings are based on comparison of similar offerings from other financial institutions. Estimated savings are updated annually.