If you’ve applied for a loan or swiped your credit card lately, you know the sting of today’s interest rates. With borrowing costs climbing, finding affordable credit can feel like searching for water in a desert. But there’s one option many people overlook: credit unions.

What Makes Credit Unions Different?

Unlike traditional banks, credit unions are member-owned nonprofits. That means instead of funneling profits to shareholders, they reinvest earnings back into their members often through:

• Lower interest rates on loans and credit cards

• Higher returns on savings accounts

• Lower fees on common banking services

In short, credit unions are built to serve you, not Wall Street.

Why Credit Unions Shine in High-Interest Times

Credit unions have a built-in safeguard: their credit card rates can’t go higher than 18% right now. Banks don’t have the same limit, which is why you often see their cards charging 20%, 25%, or even close to 30% APR.

That cap matters, especially right now. Imagine carrying a $5,000 balance:

• At 28% APR (common with some big banks), you’d owe about $1,400 in interest over a year.

• At 18% APR (the max at credit unions), you’d pay closer to $900.

That’s a $500+ difference - money that stays in your pocket.

More Than Just Rates

Credit unions also focus on financial education and member support. Many offer:

• Debt counseling and credit-building programs

• Flexible repayment options

• Community-focused services that prioritize relationships over profits

So if you’re feeling squeezed by today’s interest rates, a credit union could be the relief you’ve been searching for.

Is a Credit Union Right for You?

If you’re eligible to join one (many are tied to where you live, work, or even your family background), consider making the switch. The membership process is usually simple, and the benefits can be long-lasting.

Bottom line: In today’s high-interest-rate environment, credit unions are one of the best-kept secrets in personal finance. They offer capped rates, member-first service, and a mission rooted in helping you succeed!