Bankrate blog: CU members in good company financially
MADISON, Wis. (11/8/10 CUNA)–Consumers who conduct their financial transactions at credit unions have a more positive view of their personal finances than those who don’t, according to a recent survey. And that has prompted Bankrate to look at what causes the correlation between belonging to a credit union and being financially sound.
“According to credit union data released from the Discover U.S. Spending Monitor in September, 38% of credit union members rate their personal finances as good or excellent, compared to 30% amongst noncredit union members surveyed,” said a blog posting on Bankrate.com (Nov.4). “Just 17% of credit union members rate their finances as poor, while 29% of noncredit union members feel the same way.
“Twenty-one percent of credit union members feel their finances are getting better compared to 19% of noncredit union members, a two-point difference,” the blog continued. “Both groups also differ when it comes to whether their personal financial situation is getting better or worse; 48% of credit union members feel their finances are worsening compared to 51% of noncredit union members, a three-point difference.”
What causes the correlation between being financially sound and belonging to a credit union?
The likely reason is that people who belong to credit unions tend to seek them out for more generous interest rates and lower loan rates, the blog said. Also, because credit unions generally lack the resources large banks have to build more branches and provide ubiquitous ATMs, consumers eschew convenience to conduct their financial business at credit unions, the blog added.
“It follows then, that credit unions are attracting a consumer who is more proactive and diligent when it comes to financial matters, and one who is willing to do a little more legwork and sacrifice some convenience to get credit unions’ better deals,” the blog concludes.
CBS Early Show, other Media Give Boost to Credit Unions
Is it time for consumers to dump their banks? That’s a question the CBS Early Show posed to consumers in a highly positive Thursday story about credit unions.
The story, “Credit Unions Better than Banks For You?” compared credit unions with banks, touting credit unions’ benefits–including low rates, member service and the fact that credit unions are still lending, even though many banks have pulled back.
“[Consumers are] tired of all the big fees being imposed by the big banks, they’re tired of the really bad customer service…so they’re making the switch from the banks to the credit unions. Membership was up 11% in the third quarter,” said “Early Show” financial contributor Vera Gibbons.
“If you look at the bank loan portfolios, they’re actually shrinking, whereas the credit union loan portfolios are growing,” she added. “What that means–is if you’re a creditworthy customer you stand a better chance of getting a loan at a credit union than at a big commercial bank.”
She also noted that credit unions offer higher rates on deposits and lower rates on loans, especially auto loans.
“The overall satisfaction rate is very high at credit unions,” Gibbons said.
Another story by CBS Moneywatch Thursday said to “consider a credit union” as one of the “nine best strategies for borrowing in 2010.” The story cited a 2009 Pew Charitable Trusts Study, which said credit union credit card interest rates are about 20% lower than banks. The Pew study has received significant attention from other media including The New York Times and The Wall Street Journal.
On Thursday, CNBC noted that consumers should check out credit unions when seeking auto loans. The story quoted Jim Hanson, Credit Union National Association vice president of personal finance. Hanson told CNBC that credit unions’ rates tend to be 1% to 1.5% lower than banks’.
To see a video of the CBS Early Show story, “CUs Better than Banks for You?” or to read the full MoneyWatch article, use the following links:
Suze Orman to Larry King: CUs have great rates
WASHINGTON (12/14/09 CUNA)–Credit unions offer better rates on credit cards, personal finance guru Suze Orman told Larry King on Larry King Live Thursday.
King asked Orman if credit unions are a better option for those interested in transferring their credit card balances to credit unions from a bank.
“Yes, yes, yes, yes,” Orman said. “Credit unions–especially ones that are federally chartered–the maximum interest rate they can charge you is 18%. Now, while that may sound like a very high interest rate, the truth of the matter is many of these banks today are charging 29.99% interest.”
“So here is what I am suggesting. I think the United States of America–all of you should start looking into credit union credit cards and do a balance transfer,” Orman said.
She suggested consumers visit creditcardconnection.org, a new site that offers information about financial institutions offering credit cards. Users can enter in their zip codes to find credit unions, Orman said.
Give SIU Credit Union’s credit cards a try. Compare our rates and fees to your big bank card to see the difference. Apply today and start saving.
Going on Your Next Employment Interview
Job interviews can be challenging and stressful. Planning ahead and being prepared for hard questions will give you an edge. Here are some tips to ensure a smooth interview.
Tips:
- Practice interviewing ahead of time so you are comfortable with the process.
- Make sure your qualifications are appropriate for the position at hand. Be ready to demonstrate your proficiency in the tasks associated with the job.
- Be prepared. Learn all you can about the company ahead of time. Have an understanding of the business and the services provided.
- Dress appropriately. Project an image of workplace professionalism. Understanding the environment of the business is critical.
- Speak slowly and with confidence. Be prepared to sell yourself without being overbearing. If you don’t know the answer, be honest. Eye contact is essential and body language should convey a positive attitude.
- Don’t lie! Exaggerations about previous jobs or experiences can, and will, come back to haunt you. Employers do background checks, including previous positions and duties. Be honest about what skills you have.
- Don’t interrupt the interviewer to interject your opinions or responses.
- Don’t bad mouth your old company or supervisors during the interview.
- Ask questions when given the opportunity. For example, show interest in the position by asking specific questions about the tasks or ask questions about where the company sees itself in 5 years.
Send a follow up “thank you” letter to the interviewer showing your appreciation while conveying your continued interest in the position.
-Tracy Frischkorn, HR Director
Your Deposits are Insured
Credit Union leader Daniel Mica, of CUNA, outlines how credit unions are strong, safe and sound with virtually all insured by an agency of the federal government — just as banks are federally insured.
Mica, a former U.S. congressman, is president and CEO of the Credit Union National Association (CUNA), the leading trade association representing the nation’s 8,500 credit unions and credit union leagues in all 50 states and the District of Columbia. Credit unions are not-for-profit, member-owned financial cooperatives. With 90 million members – nearly one in three Americans – credit unions constitute perhaps the nation’s largest membership group.
At SIU Credit Union your savings are federally insured to at least $250,000 and backed by the full faith of the U.S. Government. National Credit Union Administration, a U.S. Government Agency.
Loading ...
Good Financial Cents- What is Considered a Middle Class Income? May 17, 2013Many of us identify as middle class. It provides us with an identity that is respectable, and implies that we are “normal.” After all, if you are middle class, you aren’t stuck with some of the stigmas that can come with being poor, and you are painted with the elitist brush for being rich. Middle […]Miranda Marquit
- Couples Finances: What to Do if You Don’t Agree May 16, 2013If you’re married or in a serious relationship, then you’ve probably already heard all the advice about how to manage your finances together: communicate, create goals together, don’t hide information from each other. This advice all sounds easy to do – and it’s certainly easy to give! But people aren’t perfect and neither are relationships. […]Shannon McNay
- Changes to the Child Tax Credit for 2013 May 15, 2013If you’re like me, you like to get every tax credit that you can. Why not, right? It’s like buying something that you know you are going to have to buy and having a coupon for it. It would be silly not to use it. The only problem with tax credits is that it’s hard […]Jeff Rose
- Dollars and Cents: How to Start Saving as a Young Couple May 14, 2013It’s time for another edition of Dollar and Cents. This is where I answer one of your questions. If you have a question, either use the contact form on the blog or use my Facebook Fanpage. Today’s question comes from Allison: My fiance and I are getting married in August, we just bought a house […]Jeff Rose
- Risky Business: What You Need to Know About High Risk Life Insurance May 13, 2013Life Insurance Agent: Do you participate in any high risk activities? Person seeking life insurance: I’m getting ready to base jump of a 10,000 foot mountain this weekend. Does that count? Life Insurance Agent: When you’re trying to get cheap life insurance, participating in “high risk” activities is not going to do any favors […]Jeff Rose
