Why a Credit Union Is a Credit Champion: 3 Ways PFCU Helps You Improve Your Score

4 MIN. READ

 

Key takeaways:

 

• Choosing the right financial institution is crucial, especially if your goal is to establish or build credit.
• Traditional banks work hard to earn profits for their investors, which means they charge you more in fees and might not recommend the best product for you.
• On the other hand, credit unions prioritize their members and can help you build credit with accessible and affordable products.

Where you bank matters - and not just because of the banking fees.

Your financial institution’s values and priorities are important. In fact, it can be the difference between getting rejected or approved for a loan.

If you’re looking to improve your credit score and build a solid financial foundation, here’s how credit union credit building can help.
 

Credit Unions Look Beyond Numbers

Banks continue to grow larger and adopt digital systems. What does it mean for you? You’re a number in a system, and a computer will usually review your application, often with a limited view of your financial situation.

As a credit union, we take a very different approach. Thanks to our local focus, we’re able to maintain a human scale, and a real person can review your application.

While a bank might turn you down automatically based on your credit score alone, a credit union representative might reach out and ask for more information. You could get approved based on having a stable job and a good history of paying on time, even if your credit score isn’t great.

It’s also a much more flexible process. Banks typically ask you to upload specific documents to their online platform, whereas a credit union may have a person review non-conventional proofs of income. For those who are retired or self-employed, this type of flexibility makes borrowing significantly more accessible.

When it comes to your credit, a financial institution that considers the full picture and treats you as a person rather than a number makes it easier to qualify for the right loans or credit cards.
 

Tools for Credit Building

Because credit unions are not-for-profit organizations, the goal isn’t to make money off you by charging banking fees. Instead, the objective is to generate enough revenue to sustain the credit union, enabling it to support your community with affordable banking options.

What does it mean for you? You have access to banking tools and products designed to help you build a better future rather than make investors rich.

Two of the primary ways banks generate revenue are through lending and credit card operations. With credit unions, these products look very different:
 

• Terms are flexible, and APRs stay low, even after the introductory period. For instance, while traditional banks typically charge interest rates of 25 to 30%, PFCU caps its rates at 18%.
• You can expect to pay low fees or no fees. PFCU even offers options with no annual fees and no balance transfer fees.
• Credit unions also make credit cards more accessible, with flexible requirements and products like PFCU's Student Credit Card, which is designed for young adults with a limited credit history.

Plus, credit unions won’t pressure you into using a product purely because it’s profitable for them, since it’s not the goal. Instead, you’ll get personalized recommendations for the products that make sense for you to use. 
 

Community and Consistency Matter

Being local means a credit union’s success is closely linked to its community. This is especially true for PFCU, as we’ve been serving South Florida since 1951. Our goal is to continue expanding our branch network at the local level and offering a broader range of banking products, which we hope will benefit you.

We also play a part in the local economy. In addition to being a local employer, we offer business banking services to small businesses and entrepreneurs in the area. With more than 350,000 people working for small businesses in Broward County alone, supporting local entrepreneurs makes a positive difference for everyone. 

Another way we contribute to the community is through outreach and education programs aimed at improving financial literacy. Our goal is to enhance the way our members manage their finances, enabling them to make informed decisions and contribute to the development of the next generation of financially responsible South Floridians.
 

Take Advantage of Credit Union Credit Building Perks With PFCU

If you’re struggling with building credit, joining a credit union like PFCU could be the answer.

If you live, work, or go to school in South Florida, you can join and access perks like no hidden fees, personalized advice, and real people ready to help at our local branches.

Contact us to find out more or visit a nearby branch to get started!
 

FAQs About Building Credit

 

How do credit unions help with building credit?

A credit union can help you build credit by offering accessible loans and credit cards. The requirements for applying can be more flexible compared to those of a traditional bank, and a credit union will be more likely to consider your full financial picture to make a fair decision.
 

Credit union vs. bank credit support: What’s different?

Credit unions are not-for-profit, which means they recommend the loans and credit cards that make the most sense for your unique needs. On the other hand, a traditional bank’s goal is to earn a profit by charging you fees, which means you might pay more to borrow money and might not receive recommendations that reflect what’s truly best for you.
 

What does it mean when people say credit unions are not for-profit?

It means that credit unions operate as nonprofit organizations. Their goal is to generate enough revenue to cover operating expenses, including staff salaries, and sufficient funds to issue loans. If the credit union earns more money, it will redistribute it in the form of lower fees for all members.