Lower interest on loans, lower interest on credit cards, higher interest on CD's, lower fees, and you own shares in the credit union. You are not a customer, but more like a stockholder. Where I work, as long as you have direct deposit into a checking account, you get no service fees. Savings accounts don't get fees either way. Being that they're non-profit, they can offer loans, lines of credit, and credit cards at lower interest rates in comparison to a bank. Credit unions don't follow the risk-based lending model of banks and other financiers. In a risk-based loan, the interest rate goes in accordance with the probability you'll default on a loan. If they feel you're high risk, you get a higher interest rate. In general, most credit unions don't follow that model, although some of the larger ones do. Instead, the interest rates are determined by the board of directors. Anybody that qualifies for the loan gets the same interest rate. Also, if you maintain a good relationship with a credit union, they come through in harder times. They don't go by your credit score on anything, but instead look at your credit report(s) in detail. Exceptions may be made for negative marks on your credit report. For instance, if you have accrued substantial medical debt, but need transportation, you'll still probably get approved for an auto loan. Of course, this depends on your payment history with other creditors and that you have no charge-offs or collection action on any unsecured debt or debt where collateral is involved.
