Tag: Credit Union Difference

CU at the Zoo April 14th, 2018

What is CU at the Zoo?

On By mutualcuIn Financial Lessons, Just for Fun, Saving MoneyLeave a comment

Mississippi Credit Unions Create Community in a Wild Way

CU at the Zoo logo featuring some of the animals you will see at the Jackson Zoo

Have you seen the posts on social media? Did another parent from your child’s class mention a free day at the Zoo in passing? Maybe you noticed a flyer on the wall about CU at the Zoo posted in your credit union. But what is CU at the Zoo?

Simply put, CU at the Zoo is a way for area credit unions to come together and offer a fun community event while also raising awareness of Youth Savings Month. To say “Thank You” to the community and our credit union members for being a part of the credit union movement.

Beginning in 2013, a group of area credit unions wanted to find a deeper way to connect and give back to their communities by way of physical presence and hands on activity. Through this discovery process some of the best cooperative minds in our community produced the CU at the Zoo Event! By partnering with the Jackson Zoo, area credit unions offer free admission to the first 2,500 visitors and have unique displays and booths set up throughout the Zoo complete with games, crafts, face painting, food trucks, a scavenger hunt, financial education literature and activities, and giveaways galore!

Credit Unions are co-operatives and CU at the Zoo is one more way we embody that philosophy every day. Working together, we can make a difference for even the youngest of members. What better time than April of each year, during Youth Savings Month to focus on healthy saving habits and financial education. CU at the Zoo is an event at which we can all have fun and learn a little more about animals, the zoo, the credit union movement, and of course, saving!

The event is one we look forward to every year. Seeing our members out having fun with their families and soaking up all the Jackson Zoo has to offer is a great treat for us. Don’t forget to join us this year on April 14th from 9:00 am to 2:00 pm. Get there early, there’s always a great crowd! Remember it’s free for the first 2,500 visitors, and only $5 per person for admission after we reach that number.

#CUZoo2018 #CUDifference #OurFocusIsYou #MutualCU

Auto Loans: Credit Unions Vs. Banks

On By mutualcuIn Auto, Financial LessonsLeave a comment

Need a car but can’t pay cash? You have three choices: Borrow from the dealer or manufacturer’s financing company, borrow from a bank, or borrow from a credit union (unless Uncle Bob is willing to finance you, but who wants the “strings” that go along with that?). Each method has advantages and disadvantages – but if you can qualify, the way to go is usually with a credit union.

Interest rates are still near historic lows. If you are going to borrow money for a car, there’s never been a better time.

 Structural advantages of credit unions

Credit unions are known for having lower fees and interest rates than banks and other finance companies. The advantage is in the ownership structure: The owners of banks and the majority of consumer finance companies are stockholders – not you. That means every product or service they provide has but one real objective: to make money for their shareholders, while not alienating you so much that you take your deposits and future business somewhere else.

The owners of credit unions, on the other hand, are members, not shareholders. That means profits are distributed among its members in the form of dividends and in the form of lower fees. Every dime that would have gone to Wall Street, in the case of a credit union car loan, stays with credit union members. And you, as the borrower, get to keep a chunk of it in the form of lower interest rates and fees.

 Advantage to the consumer

With traditional stock ownership, there is always an adversarial relationship between the bank and the customer. Banks serve the stockholders. The credit union exists, however, to serve members. Think of it: If the credit union didn’t serve member interests, the members could simply replace the management team until they found managers who are more responsive to the needs of the membership.

 Advantages of banks

Credit unions tend to be smaller than banks, with a limited membership. You have to meet the criteria for membership to be able to join and get a loan. Luckily, it’s easy to become a member of Mutual CU. (If you live, work, worship, attend school or volunteer in one of our seven covered counties, you’re already qualified!) sometimes, banks have more up to date ways to access loans and banking products. Luckily, Mutual CU has a full suite of digital products like online banking and a mobile app so Mutual CU goes wherever you do!

 Disadvantages of banks

As mentioned, banks have a substantial cost of overhead, in the form of their many branches, expansive operations and, of course, investor profits. Some very large banks have good economies of scale and can minimize the impact of their overhead on consumer fees. But no bank is going to want to cut into shareholder profits if they can help it.

 Dealer financing

The last option is, of course, dealer financing. These deals can be excellent on new cars (0% or 1%  financing is tough to beat), but the picture isn’t as rosy for older cars, or for those who have less-than-stellar credit.

If you go the dealer financing route, take a look at the fine print: You need a car loan with no prepayment penalty. This means you are free to pay off the loan balance at any time, without any added fees or interest tacked on. The higher the interest rate, the more important this is.

Also be on the lookout for dealer add-ons that cost more there than at the credit union where you can get the same types of warranties, gap and other insurance for substantially less.

 The lease option

The final option, of course, is leasing rather than buying. A lease is essentially a contract to rent the car for a period of time and to turn the car back in at the end of that contract (the lease). Lease payments tend to be lower than loan payments because when a loan is paid, you keep the car! The loan is buying the whole car, and not just the depreciation it has during the first few years.

In the long run, the consumer is almost always better off buying a car outright, rather than leasing. With a car loan, the pain of payments is over in one to four years, but you can be driving the car for 10 years or more! With a car lease, though, your payments never stop, and you never own the car.

Still not sure what to do? Contact us to request your free car buying guide; and when you’re ready, we can get you pre-approved to shop for your new set of wheels!