As summer begins to wane, many students are beginning to prepare for college. Beyond an educational investment, college is a financial one too. Banking with a credit union offers numerous benefits for college students.
At Telco Credit Union, we know how important it is to save money and consider your financial future. One such way is to teach your children how to be financially smart and to set them up as best as you can. Telco serves the Eastern North Carolina area, including Greenville, Tarboro, and Rocky Mount. You can trust Telco with all your financial needs, whether you’re looking to open a checking or savings account, take out a loan, finance your mortgage, or become a Telco member/owner.
Five Reasons College Students Should Join a Credit Union
Most students headed to college are using their first checking accounts and credit cards and may not be aware of the fact that you don’t have to use one of the big national banks. Campuses regularly offer credit union promotions that feature incredible rates on student loans and car loans.
Lower loan rates
If you do decide to take out a student loan from a credit union, you’re pretty likely to get a better rate than you would from a bank. Car loans, home equity lines, and mortgage rates from credit unions are all consistently lower than banks, so it stands to reason that your local credit union will have a better student loan for you. This is critical after college when you have to start paying off loans.
Better savings rates
This may well be your first checking account, which could turn into a savings account, CD, or money market account. You want to make sure you’re getting the best possible rate you can. And that’s one of the glorious features of a credit union: they’re designed to circulate money through their communities. So, you’re likely to get more interest off your savings account in a credit union than a bank.
Fewer predatory credit cards
Bank-issued credit cards are traps that can easily lock young people into a lifetime of debt. While it’s important to be responsible with credit cards no matter who issues them, credit unions offer cards that are often lower than banks. So if you end up running a debt on your card during college, you will owe less if you use a credit union.
Getting approved for a loan
Let’s not rush past this loan thing. Loans are not necessarily easy to get. If you have good credit, you’re far more likely to get a “signature loan” from a credit union than from a bank. Also, credit union small business loans are typically better as well. So if you plan to start a business in college, it’s better to use a credit union. But you’re far more likely to get a small business loan at reasonable rates with a credit union than a bank. Credit unions are looking to make that rate better, too.
Perhaps one of the most compelling reasons to use a credit union over a bank is the level of customer service offered. Banks are not about community, whereas credit unions are specifically tailored to their communities in a profound way.
College is an exciting but stressful time. Let Telco Credit Union help you today. Contact us and talk to a specialist about what kind of loan is best for you and why a credit union is the best option for your future.