What is a key advantage of borrowing from credit unions compared to banks?

Borrowing from credit unions offers a key advantage primarily due to the lower fees and better interest rates that they typically provide. Credit unions are non-profit organizations, which means their primary goal is to serve their members rather than to generate profit. This model allows them to offer more favorable lending terms. For instance, the interest rates on loans from credit unions are often lower than those offered by traditional banks, making borrowing more affordable. Additionally, credit unions tend to have fewer and lower fees associated with loans, which further enhances the financial benefits for borrowers.

In contrast, while other options may suggest alternate benefits of credit unions, they do not capture the distinctive advantage of cost-effectiveness that lower fees and better interest rates provide. The option suggesting higher fees on loans is contrary to what credit unions aim to achieve, and claims about wider product offerings might not hold true as credit unions may offer fewer, but often more tailored, products. Lastly, the notion that "anyone can be a member" does not reflect the membership eligibility criteria that many credit unions have in place, which usually require individuals to meet certain conditions.