3. Given a choice, would you rather deal with a bank or a credit union? Is it time to ditch the bank for the credit union? Credit unions have several advantages over banks. Because they are nonprofit institutions, and therefore do not have to pay shares or executive salaries, the money that credit unions earn goes back to members in the form of dividends. The lack of pressure to make a profit also allows credit unions to offer more attractive rates on items like CDs, mortgages, credit cards, and car loans.

Some consumers also feel that credit unions offer more quality services, such as taking the time to help customers set up financial plans. Customer satisfaction is higher with credit unions than banks, although customer satisfaction with banks has risen in recent years.

Additionally, most credit unions offer free checking and lower penalty fees than banks. With 100 million members, credit unions are becoming a popular alternative to traditional banking.