An Oregon credit union is a similar institution with a bank. Both of them are in the financial market and they operate almost the same. The differences between them are the goal they have and the way in which they treat their clients. In this article, you will also find the advantages that the best credit unions in Oregon have over banks.
The first thing you must understand is, what are the differences between these two types of institutions because they create the advantages. You must keep in mind that there are situations in which banks are still better than credit unions, and your decision should come after intensive research.
Differences Between a Bank and an Oregon Credit Union
The biggest difference between a bank and an Oregon credit union is their goal. The bank’s main goal is to maximize profit. It must find the best ways to make as much money as possible. On the other hand, a credit union is a non-profit organization, this means that they must not make a big profit (they need only a certain amount, enough to operate properly).
I am sure that you can imagine what are the advantages that you will be able to obtain from this difference, if not, you will find them in this article. But this also affects them, even the best credit unions in Oregon, in some negative ways. Less profit means fewer investments in the growth of the institution and this creates certain limitations to the services offered by them.
The second difference is the way in which the clients are treated. Banks treat their clients like any other business out there. They keep their retaliation with their customers very professional, the bigger the bank the more professional the relation gets.
On the other hand, the clients of a credit union are also its members. To enter a union, you must accomplish some requirements. These can be geographical, professional, or any other such conditions. But as a member, you will have the right to vote the persons that you want to be in the leadership and by doing so you also choose the direction in which you believe the institution should go.
Another consequence of this membership relation is the fact that the staff will focus more on the satisfaction of the clients. This can also mean more benefits for you. You can create close relationships not only with the staff of the union but with other members as well.
What Are the Advantages Brought by the Best Credit Unions in Oregon and How to Make Use of Them?
There are 2 very big benefits from which you can benefit while being a member of a credit union:
1. Better rates
Because the best credit unions in Oregon does not have the goal to maximize their profits, they have the possibility to offer better interest rates to their members. So, you can borrow money while paying a much lower interest rate than what you would have paid at a bank.
Also, if you want to keep your money safe while also making a profit, you can deposit them at a union and you will get a much higher interest rate as well. These benefits make credit unions a very good opportunity for those that want to maximize their profits while saving or investing with borrowed money.
2. Close relationship
As mentioned above, because of the structure through which it is built, you can have a much closer relationship not only with the staff of a union but with the rest of the members as well. This happens because all the members of the union much accomplish the same requirements, so this also means that you will have something in common with everyone else.
You can make use of these common factors to increase your network and strengthen these relationships. You should understand that in today’s society the importance of a network is very big. Many rich and important people say that your net worth is equal to your network.
In conclusion, credit unions have some major advantages over banks, but even so, it is impossible for them to completely take the banks’ market share. This happens because of the advantage that a bank has thorough maximizing its profits.
Banks can grow much faster and they can have a much higher reach than an Oregon credit union. This permits them to have a much higher number of potential customers. Firstly, they have no requirements and are able to serve almost anyone.
Secondly, because they can expand much more and much faster, they are able to attract potential customers from a larger region. The best alternative for you depends completely on your situation but now you should be able to get an idea about which alternative offers more benefits to you.