The News Herald (Willoughby, OH)
Area credit unions growing, statistics show
Statistics show that more people are turning to credit unions for financial services.
About 2.83 million Ohioans choose credit unions, according to the most recent data from the Ohio Credit Union League.
Locally, there has also been a rise in both memberships and loans at Painesville Credit Union and Geauga Credit Union.
“Every month we track our growth just to see where we are at and if we had a special promotion to see if its working,” said Painesville Credit Union CEO Lori Guzzi. “In the last 12 months, we have grown 250 members. So, we’ve had a steady increase every month in the last year for membership growth. I think part of it is the word is getting out about credit unions.”
There are many benefits to credit union membership, supporters say.
Credit unions generally provide financial benefits to members through lower rates, high savings rates and fewer fees than banking institutions, according to the Credit Union National Association.
CUNA estimates that
“In the last 12 months, we have grown 250 members. So, we’ve had a steady increase every month in the last year for membership growth . ... ” — Lori Guzzi, Painesille Credit Union CEO
Ohio credit unions provided $177,273,023 in direct financial benefits to members during the 12 months ending in June.
Additionally, Ohio credit unions excel in providing member benefits on many loan and savings products, according to CUNA.
“In particular, Ohio credit unions offer lower average loan rates on new car loans, used car loans, personal unsecured loans, first mortgage- adjustable rate, home equity loans and credit cards,” CUNA said.
Data shows that the average interest rates on a credit card at a Ohio credit union is 9.71 percent compared to 12.09 percent at a Ohio bank.
Throughout the state interest rates were also lower on credit cards, home equity, 15-year fixed rate, five- year adjustable rate first mortgage, unsecured loans, 48- month used car and 60-month used cars.
Painesville Credit Union has seen significant growth in used car loans, Guzzi said.
Geauga Credit Union has also seen growth in lending, but CEO Lisa Briggs said they continue to struggle with auto lending.
Briggs said their focus is on the Amish community.
“About four to five years ago, we started offering small business lending, which helped us get in the community more,” she said.
More home equity loans and equipment loans were also provided within the last few years, Briggs said.
In November 2016, Geauga County Credit Union expanded the community charter to include Ashtabula, Trumbull and Portage Counties.
On the other hand, Painesville Credit Union serves all of Lake County.
In addition to lower interest rates and member advantages, Guzzi said customer service is what really sets them apart.
“We know our members,” she said. “We’ve been here for 76 years, so we have had families that have four generations banking with us. I have parents who are now bringing in their kids, that when I started I was giving them suckers and juice boxes, now their kids are getting the suckers and juice boxes. I just think that attest to the stability here.”
The Geauga County Credit Union, which was founded in 1956, has similar community values and follows “the Credit Union Philosophy: Not for Profit, Not for Charity, But for Service.”