Newsweek, Good Morning America Focus on Credit Unions' Service
NEW YORK (11/9/09) -- Newsweek and Good Morning America recently carried stories highlighting credit unions' services to their members.
NEW YORK (11/9/09) -- Newsweek and Good Morning America recently carried stories highlighting credit unions' services to their members.
On Friday, Good Morning America noted that credit unions are a good option for college students looking for financing.
"The bottom line is when going to get an account at college, the best place where you can possibly go is your student credit union," said financial reporter Mellody Hobson. "People often think banks, but credit unions are actually terrific. They report they save $8 billion in fees for their members because they allow for very low account balances, they don't charge those pesky ATM fees and they actually give good rates on loans."
Credit unions also offer lower interest rates on credit cards than banks, according to a Thursday Newsweek article. The article, "Credit Card Company or Loan Shark?" cited a Pew Research Center study, which indicated that credit unions offer interest rates 20% below bank-issued cards' rates.
"Credit unions have not been under the same pressure to grow," Nick Bourke, manager of the Pew Safe Credit Cards Project, told the magazine. "Growing big and quickly is what has left banks [free] to charge such high penalties."
A recent Pew Research Center report found that in the past four months, credit card companies have added new fees, changed account terms, and increased interest rates on credit card accounts -- some by 30%. The industry says that the changes are necessary given the tough economy, the study indicated.
The Pew study also garnered coverage in The Wall Street Journal and several regional broadcast news outlets.
