What is better for a Latino immigrant in the US: banks or credit unions

If you are a Latino immigrant, don’t let structural barriers hinder your path to finance in the US. To help you, at Takecareofmoney we tell you the advantages and disadvantages of banks, as well as credit unions, so that you choose one to work with so that you achieve all your goals.

There are many difficulties faced by Latino immigrants in the United States who want to enter the financial world. According to a recent report from the Federal Reserve, close to a third of Hispanic adults in the US do not have a bank account of any kind, which means they have turned to alternative financial services such as short-term loans, which have proven to be profoundly dangerous for the economic stability of consumers.

Due to these structural barriers, many financial specialists recommend that Latino immigrants go to credit unions (also known as credit unions), financial institutions that differ from commercial banks by offering closer treatment due to their communal qualities.

However, banks also offer advantages that Latinos should be aware of, since these are almost essential financial institutions to achieve substantial improvements in life in the United States.

Banks or credit unions? What is the best for migrants? At Takecareofmoney we tell you the advantages and disadvantages of each of these financial institutions.

Advantages and disadvantages of banks for Latino immigrants in the US

Banks are America’s quintessential financial institutions.

Among its advantages are:

  1. Sufficient resources to offer technological solutions to their clients on a regular basis, so you can always expect improvements in digital attention and in the various financial services they have.
  2. A wide selection of financial products (probably more than what credit unions can offer), including credit cards with exclusive rewards, specialized loans and more.
  3. Convenience and accessibility through branches and ATMs in various parts of the country.

However, banks also have disadvantages that can be decisive for Latino immigrants, such as much higher interest rates, maintenance fees and, above all, a much more impersonal treatment, which does not improve the lack of trust that immigrants have. Hispanics in these types of institutions.

Advantages and disadvantages of credit unions for Latino immigrants in the US.

Credit unions are not-for-profit financial institutions and are much more community-focused, so they can serve Latino immigrants who are looking for local economic support.

In this sense, organizations such as Juntos Avanzamos, a credit union focused on the needs of the Hispanic community in the United States and its immigrants, can be more useful for Latinos who seek to enter, albeit gradually, in the world of USA finance

Among the advantages offered by credit unions are:

1) Personalized attention, as well as tailored customer service, are often intrinsic characteristics of credit unions.

2) The non-profit nature of credit unions means that profits are distributed among their members.

3) The requirements, as well as the fees for the use of credit union services, are not as expensive as those of banks.

However, the limited supply of financial products, as well as the poor accessibility of credit unions nationwide, mean that not many go to them compared to regular banks.

Whichever you choose, one thing is certain: the more financial literature you consume, the more you will be able to make better decisions related to your personal finances.