I always hear good things about credit unions, but I’m not convinced. My husband tried to get his truck refinanced at a local credit union and they offered him a 12% interest rate on one 60 month loan and a separate personal loan with a 16% interest rate to cover the rest – on a loan with $6000 owed. The reason? They claimed he needed three solid years of credit history, which he had, but they told us he didn’t. And he had a 720 credit score.
We went to a car dealership (of all places) and got it refinanced at 5% for three years. A third of his original interest rate, decreased length of loan by almost a year, and dropped the payments by $50/mo. And this was with a regular bank.
The bank we use offers free accounts with no fees or minimum balances. I’ve been with then since I was 17 and I’ve never had a problem.
I think the idea that credit unions are better may be true in some cases, but certainly not all. Check out some of both and don’t rule out either until you know what they offer.