Published on 16, Aug 2022

If Credit Unions and Banks Slugged It Out, Who Would Win? Devin M. Davis Reveals the Answer

Ask ten people whether you should use a major bank or a credit union, and you will get eleven different answers. That makes Devin M. Davis, a Senior Credit Specialist, Business Coach, and retired U.S. Marine Corps Veteran, laugh. “That’s true,” he says. “The pros and cons of each one can make it hard to decide which one is better. If you’re uncertain, you’re not alone. I actually get asked this question a lot, so I’ll give my own opinion on which one is best to go with and why.”

The pros of credit unions

To understand which one is best for you (and which one Devin prefers), it helps to first understand the benefits of going with a credit union.

“First, their eligibility requirements are less rigid than those of banks,” Devin explains. “Checking accounts are generally free, which is a nice perk. If you get a loan from a credit union, you can expect lower interest rates, and their credit cards tend to have higher limits.”

The cons of credit unions

While there are relatively few disadvantages to using a credit union, they should be considered. Generally, they have fewer physical branches, which can translate to limited access to ATMs.

“It also means that even if you do have a branch in your city, you may face a bit of a drive to get to it,” says Devin. “Or, if you live relatively close to a branch, that could all change if you decide to move elsewhere.”

Pros of major banks

As you might expect, if you go with a major bank, you can expect to have access to many convenient locations as well as better technology and apps.

“They also have a stronger ATM system, all of which contributes to travel being easier, especially abroad,” Devin states. “These are some benefits well-worth considering when you are weighing whether to choose a credit union or bank.”

Cons of major banks

While banks have multiple points in their favor, they aren’t without their limitations.

“You will find that their eligibility requirements are stringent,” says Devin. “Also, their interest rates and transaction fees are higher than those of credit unions. And, of course, there is always a line inside, right when you are in a hurry.”

Credit union or major bank? Devin explains his preference.

He loves using credit unions for his personal accounts because he can get the best interest rates, and he is given the highest limits on credit cards. He also likes that credit unions give him the best rates for all of his cars.

“The customer service at credit unions is always great, too, which I value,” Devin says. “They are super easy to work with. I like the fact that I own a portion of the company, too. However, most important for me is that they support the small businesses in the area. That’s why between a major bank and a credit union, I choose credit unions.”

Business accounts, he continues, are another story. In his opinion, Navy Federal and PenFed are the best credit unions if you can get in. 

“The limits are very nice, and Navy Federal has two of the best credit cards,” Devin believes. “The Navy Federal issues cash rewards for some starting out with credit. The card is green in color. The other card, the Navy Federal Flagship, gives very high limits. It is black in color, and to qualify for it, you normally need a higher credit score.”

Major bank or credit union - which will you choose?

There you have it - the main differences between major banks and credit unions. “When you are making your choice, take your time and really look at the details of each one,” Devin suggests. “Don’t be afraid to ask questions, and line everything up and compare apples to apples. When you do, you should be able to see which one is better and make the right choice for yourself.”

Devin M. Davis is a retired U.S. Marine Corps Veteran and self-made entrepreneur who has built several successful businesses, including a business coaching company and a financial services business. As the author of Business Credit Secrets and the builder of Boost Score Now, he has taught and studied finance, credit, business, money, motivation and leadership for many years. Devin is using what he knows about attaining success to help more people understand that there really are no elevators to success - only the stairs that they choose to walk up, one step at a time.