Being in college is hard and can come with financial stress, but it doesn’t have to! Saving and learning about money is important in this stage of life, and it’s a big decision to decide where to keep your money. There are action steps to take to save money and help with college costs. If you’re wondering where to start your financial journey, joining a credit union is one! There are many credit union benefits for college students.
Credit Unions Give Money Back to Members
Credit unions are member-owned and not for profit. Therefore, instead of prioritizing profits like banks, credit unions share their earnings with their members by giving them better rates and lower fees on transactions. For example, credit unions typically have higher interest rates on savings accounts which is a huge benefit for young people thinking of joining a credit union. This allows you to earn interest and grow your money in a way that a typical savings account at a bank can’t. Vibe Credit Union specifically has a High Yield Reward Checking, allowing members to earn 6.50% APY on balances up to $7,500 or 0.02% APY on balances over $7,500!
Credit Unions Make Loans Accessible for Everyone
Loan options can be overwhelming, especially as a college student taking their first steps into their financial future. Another credit union benefit for college students is that credit unions typically give students easier access to lower rates and a chance to build credit. Banks historically rely heavily on credit scores when approving people for loans, while credit unions are more flexible! They often consider a loan applicant’s overall financial situation and are more willing to approve loans for students who have little or no credit history. For example, Vibe offers a Fresh Start Auto Loan, which is specifically available to members who are working to improve their credit. We also offer various loan options, such as our First Time Auto Loan to members that have never had a loan and are working to build their credit.
Credit Unions Make it Easy to Build Credit
If you don’t have a credit history, a credit union is a great place to start! Banks often use credit history as a principal requirement for applications for credit cards, which can be a challenge for college students without credit. Credit unions can here to help students, by providing them with credit boosting products. Vibe’s VISA Platinum Credit Card is simple, easy to apply for, and caters to various financial scenarios. Getting a credit card is a great way for a student to start to build credit. Making it easy people to build credit is one of the great credit union benefits for college students. Visit our blog, Credit Scores 101: Understanding & Building Your Credit, to get more resources to build your credit!
Credit Unions Help Members Make Smart Financial Moves
In addition to the financial advantages, there are other credit unions benefits such as free financial education classes, workshops, and resources. These resources can help students build a strong financial foundation. Additionally, credit unions value member and community well-being. Credit unions offer personalized guidance and invest in their community through volunteering and financial literacy events. Their friendly and member-focused approach makes them easy to reach out to, ensuring that college students can feel comfortable seeking advice. By joining a credit union, you’re not only gaining access to better rates and services, but you’re also taking steps to achieve financial stability.
Joining a credit union is a great first step towards funding your financial future, especially for college students. Credit unions are the best place to get better deals on financial products and services. With personalized service, great deals, and a commitment to your financial education, a credit union can make a real difference in setting you up for a secure financial future. There are many credit union benefits for college students – join a credit union and make the most out of your finances during these years!
