Thursday, August 19th, 2021

10 Myths About Credit Unions

Did you know more than 112 million Americans use credit unions? While credit unions continue to gain popularity, persistent myths prevent some people from making the switch. Here’s a look at the ten most common misconceptions and the answers that debunk them

10 Myths About Credit Unions

How much do you know about credit unions? Test yourself on these 10 myths:

Myth #1: You must meet strict eligibility requirements.

Fact: While credit unions do require that members meet certain requirements to satisfy a common bond, many of these are broad, and few of them truly limit membership.

There are many ways to qualify for membership with AGCU.

Myth #2: Getting to the ATM is difficult because my branch isn’t nearby.

Fact: With over 5000 Shared Branches and 30,000 free ATMs available, availability is not an issue.  In fact, credit unions offer more ATM access than most of the biggest national banks. Click here to find a location near you!

Myth #3: Changing my banking from a traditional bank to AGCU will be a hassle.

Fact: AGCU offers the same services as banks, including automatic bill payments and direct deposit. Most services will transition easily and go uninterrupted.

Myth #4: With all the fancy advertising, banks must have more money than credit unions.

Fact: While this may be true, it’s because credit unions are not-for-profit organizations. Rather than spend money on advertising and marketing, credit unions rely on the community for marketing. The money saved is rolled back into services for members or distributed back to members as dividends.

Myth #5: Credit unions don’t offer reward programs.

Fact: Many credit unions do offer reward programs on credit and debit cards. Do the research and be sure to take a look at the fees that are associated with the various accounts, even those offering rewards. At a credit union, you’ll save on fees. Do your bank rewards outweigh the fees you’re paying on each account?

Myth #6: Credit unions aren’t very tech-savvy.

Fact: AGCU doesn’t promote mobile options as aggressively as banks, but that doesn’t mean we don’t offer them. According to a study by CFI Group, bank customers rated their satisfaction at 86 out of 100 in online and mobile banking versus 90 out of 100 among credit union members.

Myth #7: Credit unions are just like banks.

Fact: Credit unions are not just like banks. Members own a piece of the organization and own a vote in determining how the credit union is managed. AGCU also returns more earnings back to members with our low fees and great dividend rates.

The more you use AGCU for your day-to-day banking needs, the more you help support worthy causes – both locally and worldwide. We donate 10% of our annual earnings to support churches and ministries, educational scholarships and programs, and humanitarian efforts.

Myth #8: Credit unions have an unfair advantage over banks because they don’t pay taxes.

Fact: Actually, credit unions do pay taxes. As a not-for-profit, member-owned financial cooperative, there are some taxes that credit unions don’t pay. Those “unfair advantages,” of course, are passed on to members.

Myth #9: Credit unions are not regulated.

Fact: Credit unions are held to the same laws and regulations as banks. In fact, credit unions face more restrictions on the investments and loans they make.

Myth #10: Credit unions are good places to save money, but that’s about it.

Fact: Credit unions offer consumer loans, debit and credit card services, online banking and bill pay, checking accounts, retirement investments, mortgages, car loans, and more. They are a great place to take care of all your banking needs.

AGCU is proud to have again earned Bauer Financial, Inc.’s highest rating for strength and stability among all financial institutions.

The 5-star rating denotes the absolute highest level of banking performance from the nation’s leading independent bank rating firm. This 5-star rating puts AGCU in an elite category as one of the strongest financial institutions in the nation.

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose