5 credit union perks for the little guy

Credit union perks for the little guy

Better than a big bank?

At credit unions, every person counts and they want you to know it.

Yes, they do usually offer lower fees and better service than big banks. They also serve up some neglected goodies worth scooping up, including discounts on events and cash-back incentives.

How do they pull this off? By pooling buying power.

Since credit unions are not-for-profits owned by their members, they return savings to their membership. For example, auto loan rates are usually 2 percent lower than they are at banks, says Anne Legg, chair of the Credit Union National Association's Marketing and Business Development Council.

"We have everything that big banks have and more," says Todd Pietzsch, spokesman at BECU, a credit union based in Tukwila, Wash. "But a lot of people don't understand the benefits."
To be sure, credit unions come in all shapes and sizes. Some are community based; others cater to specialized groups like police officers or teachers. Many Fortune 500 companies and universities also are affiliated with credit unions. Perks can be equally generous at all of them, says Legg.

Here's a sampling of the perks being offered at credit unions near you.



Credit unions typically offer lower loan rates.

But what about renegotiating loans if you fall behind? At credit unions, the process is usually simple. "You can do it in one phone call," Legg says. "We look at each independent loan to see opportunities."

Still, there may be restrictions, such as paying down part of your loan. And one downside is that renegotiating a loan can tarnish your credit score.

Find discounts on services, entertainment 


With a large membership, credit unions can dish out lots of useful, fun discounts. BECU offers discount on sports tickets, tax preparation software and amusement parks, among other perks.

"We keep offering more every year," Pietzsch says. "It's got to be a quality product, though, that appeals to a broad base."

Based in Richmond, Va., Virginia Credit Union, which currently offers nine discounts on amusement parks, tax preparation and even travel, also offers a mortgage rebate of up to $1,500.

Also, Landmark Credit Union has services aimed at its Hispanic clients, including money transfer services to Mexico for people to send money back home, Ransom says.

Banks aren't the only ones dishing out incentives.

Credit unions offer some juicy ones, too. For example, OMNI Community Credit Union in Battle Creek, Mich., has offered cash-back rebates on checking accounts, savings and car loans.

Other credit unions offer cash incentives. At the time of writing, BECU had a membership program where you could get a higher interest rate on your first $500 in a checking or savings account by signing up for various services like online bill pay.

"Just because you don't have $100,000, we don't treat you differently," says Pietzsch.

Some credit unions also offer generous rewards programs. At Security Service Federal Credit Union in San Antonio, you can use its rewards debit and credit card program for merchandise, charitable contributions, travel or gift cards.

Credit unions are usually family oriented.

"You'll find a product for every lifestyle from the first checking account to retirement products," says Legg.

For example, there's a bevy of kid-friendly accounts. Chicago-based Alliant Credit Union has a Kidz Klub savings account that pays high dividends, includes a newsletter and comes with a special ID card. Affinity Federal Credit Union in Basking Ridge, N.J., has a College Planning Center, where advisers help members create a free financial plan to save for college. Many credit unions also offer college scholarships to members.

Credit union programs aimed at seniors can go beyond just retirement plans. Summit Credit Union in Madison, Wis., has a senior club with free perks like traveler's checks and ID theft recovery services.

Many credit unions also offer wide-ranging financial services, including brokerage accounts, life insurance