If you’re on the lookout for a new bank, you might want to consider a credit union instead. Credit unions are generally a bit more selective than banks, and may require a credit check before you can open an account. But if you meet their requirements, you can take advantage of several benefits that big national banks don’t offer. Read on below for a list of the top 5 credit unions in Los Angeles County!
How to Choose the Best Credit Union For Your Needs
The first step to finding the best credit union is considering your own needs. Are you looking for a higher interest rate? Access to deals on an auto loan? The best customer service? All of these factors are going to come into play. Let’s take a quick look at each.
Rates and Fees
The number one reason many people switch from a bank to a credit union is the difference in rates and fees. Banks, particularly big ones, charge fees for many everyday activities. Getting constantly dinged with checking account fees can quickly put a dent in your balance.
Similarly, big banks generally don’t offer competitive savings account rates. Credit unions do, even in today’s economy.
The reason for this is that banks are for-profit institutions. They’re publicly-traded companies, and you are their customer. Credit unions, on the other hand, are not-for-profit. The money that would have gone to corporate profit goes to you instead, in the form of higher interest rates and lower fees.
Branch and ATM locations
Not long ago, big banks had the advantage of large ATM and branch networks for their customers. Local credit unions, meanwhile, were unable to compete.
But nowadays, credit unions can join ATM networks, as well as the Co-op Network of ATMs. Many credit unions even refund your out of network ATM fees, which makes them a non-issue. Unless you need to visit physical branches outside of Los Angeles County, all five of our recommendations will also have plenty of physical presence.
Loan Offerings
Many institutions, including banks and credit unions, offer more favorable loan terms to their members. These can range from auto loans to mortgages to life insurance policies. It depends on the institution. But if you want good loan terms from your credit union, make sure to keep your eyes open, just as you would when shopping for a commercial bank.
Online Options
One advantage of commercial banks used to be the availability of online banking apps. Until very recently, if you wanted online banking, you needed to work with a traditional bank.
But nowadays, there are many third-party vendors providing services to credit unions and local community banks. These apps work the same as the apps for big banks, so you get access to all of the same functions. If you want online banking, keep an eye out for this feature.
Customer Service
Traditionally, credit unions have far surpassed big banks in terms of customer service. They have also outpaced community banks, but by a smaller extent.
At the end of the day, this is just a market trend. It doesn’t tell you anything about any one bank or credit union. There are big banks with good customer service. There are credit unions with bad customer service. Check to see what actual customers have to say before you open an account.
1. Wescom Credit Union
Wescom Credit Union is an excellent choice for anyone who wants to visit a local branch every now and then. In addition to Los Angeles proper, their 22 locations include Irvine, Orange, Corona, Thousand Oaks, and Palmdale.
There are several different account types available, and Wescom Credit Union’s lineup starts with no-minimum-balance checking, free online banking, and a 30,000-ATM network. They also offer high-rate savings accounts (learn more about the importance of this), IRAs, and even youth accounts.
As befits a credit union with this many branches, Wescom Credit Union has many loan officers who are happy to help with just about any type of loan. To begin with, they offer home equity loans, FHA-insured mortgages, and home equity lines of credit.
They also offer loans for more everyday needs. You can apply for an auto loan, or even take out a credit card. For emergencies, they offer personal lines of credit.
In addition to Wescom Credit Union’s banking functions, they also function as an insurance company for their members. They offer auto insurance, homeowners insurance, renters insurance, life insurance, health insurance, and even dental insurance.
2. Alliant Credit Union
Alliant Credit Union is one of the most inclusive credit unions out there. Most credit unions require you to live in a specific area, work in a certain trade, or attend a certain school. Anyone can join Alliant Credit Union, provided you pass the initial credit check.
Even if you have less than perfect credit, you may pass the check if all of your current payments are up to date. One other thing you may be asked to do is make a one-time $10 donation to a children’s charity.
Alliant is a national credit union, with ATMs in every part of the country. With more than 80,000 ATMs in their network, finding one that works is easy. And even if you’re out of network, Alliant will reimburse any third-party ATM fees.
Not only that, but Alliant also provides online banking and bill paying. You can cash checks, make transfers, and perform most other day to day functions.
For account holders, they offer 0.75% APY on savings, which is fairly high in today’s market. They also offer no-fee overdraft transfers if you have a savings and checking account paired.
The downside is that Alliant does not participate in shared branching. The only physical branches are located in Chicago, so Los Angeles-based customers will be limited to online and phone support.
3. California Bear Credit Union
California Bear Credit Union exists primarily to serve employees of the state of California. But in addition to them and their family members, it’s also available to anyone who lives, works, worships, or attends school in Metro Los Angeles. This includes Los Angeles itself, as well as Boyle Heights, Eagle Rock, and Highland Park.
California Bear Credit Union is mostly known for their checking accounts. Their most basic account, the Freedom Checking account, pays $5 a month if you make 10 signature-based purchases. The Premium tier actually pays dividends for every dollar you spend. The amount of this dividend varies from year to year. Finally, there’s a Silver Bear account with special bonuses for account holders aged 55 and older.
There are plenty of loan options available through California Bear Credit Union. You can take out an auto loan, a home loan, or a home equity line of credit. You can even open a credit card with no balance transfer fees.
California Bear Credit Union provides several types of insurance to their members. You can take out mechanical breakdown protection or GAP coverage to enhance your car insurance. You can insure your home or your car, as well as sign up for a life insurance policy.
4. Los Angeles Federal Credit Union
Los Angeles Federal Credit Union (LAFCU) has served Los Angelinos since it was first founded during the Great Depression. Today, they serve over 55,000 members from throughout Southern California. They have eight physical branches, which are all located in the Los Angeles metro area.
The main benefit of LAFCU is the number and type of checking accounts they offer. Their regular checking is fairly comprehensive with free online and mobile banking, zero fees, and refunds for out of network ATM fees. Their savings account is also competitive, and pays dividends to all account owners.
LAFCU also offers a “Second Chance” checking account. This type of account is designed specifically for people with poor or no credit, to build a better financial record. It comes with a small monthly fee, but it’s a great opportunity if you need a checking account. And after 12 months, it’s eligible to convert into an ordinary, no-fee checking account.
LAFCU is a member of a shared branch and ATM network that provides access to services throughout the US. Even if you end up moving across the country, you can still use your account just as if you were living in Southern California.
5. First City Credit Union
First City Credit Union was founded during the Great Depression to service city and county employees in Los Angeles. They still serve those individuals, but they now also serve anyone who lives or works in Los Angeles County. With over 60,000 members, they have seven physical branches throughout greater Los Angeles.
If you’re looking for modern features, First City Credit Union does not disappoint. They offer online banking and bill payment, as well as Apple Pay and phone banking. Even if you never set foot in a branch office, you’ll have all your account features close to hand.
First City Credit Union offers a few different account types. In addition to free and interest-bearing checking accounts and savings accounts, they also offer money market accounts, term certificates, IRAs, and more.
