A local credit union and big bank may both offer this product, but that’s where the similarities usually end. A bank is a profit-driven corporation that leverages customer money and charges more for loans, accounts, and lines of credit to generate cash for shareholders.
By contrast, a credit union follows a not-for-profit mandate to foster the financial betterment of community members. Because credit unions do not have to siphon off money from members, they are free to pass along savings to the membership. While it may feel daunting to find a lender with the lowest HELOC rate and fees, a basic business model comparison indicates working families are better off with a community credit union.