Credit Unions vs Banks for HELOCs

Which is better for HELOCs – credit unions or banks? Bellco Federal Credit Union offers some of the best HELOC rates in Berks County, PA to help members and their families build better lives.

What is a HELOC?

A HELOC, or Home Equity Line of Credit, is a revolving line of credit that is secured by the equity in your home. It has a draw period and a repayment period.

During the draw period (typically 5 or 10 years), you can withdraw funds from the credit line up to your credit limit. Withdraw as much as you need, when you need it, and make a minimum payment on the amount withdrawn.

If you partially or completely repay the line of credit during the draw period, you may make additional withdrawals. However, even if you do not use all of the available funds, you will not be able to make withdrawals after the draw period closes.

During the repayment period, you will be required to make monthly principal and interest payments until the entire loan has been repaid (typically up to 10 years).

Take advantage of Bellco FCU’s current regular HELOC rates as low as 3.99%APR (subject to change at any time) or our special 6-month Introductory Rate of 1.99%APR (may be discontinued without notice).

Our HELOC gives you flexible access to cash with minimal fees and can be particularly convenient when you need to borrow smaller amounts over a longer period, such as for college tuition payments or an ongoing home renovation project.

Credit Unions vs Banks

When shopping for a bank or credit union, you should base your decision on your personal needs and the needs of your family. Here are five differences to consider:

  • Higher Rates on Deposits – In most cases, credit unions pay higher interest rates on deposit accounts, including savings and checking accounts, than you can expect to receive from your local commercial bank. Compare Bellco FCU’s competitive rates here.

  • Lower Rates on Loans & Credit Cards – Credit unions are often exempt from many state and federal taxes, resulting in a variety of benefits for members. With the money saved from tax exemptions, credit unions are able to offer lower interest rates than banks for personal loans, auto loans, mortgages, and credit cards, particularly if you have good credit. 

  • Lower Fees – Credit union expenses are lower than traditional banks, so we can pass the savings on to members. Bellco FCU offers free checking accounts with no minimum balance restrictions, free online banking and bill pay, free eStatements, and free mobile banking. 

  • Customer Focused – The bigger the bank, the less personal attention you are likely to receive. Credit unions, on the other hand, offer fast and personalized customer care. Bellco FCU’s trusted and experienced professionals genuinely listen to your needs and offer solutions with the compassion of a true neighbor. 

  • Eligibility – Banks are free to conduct business with any customer. Credit union membership, in comparison, is restricted by law to certain groups of affiliated people. If you live, work, worship, or attend school in Berks County, PA, you are eligible to become a member of Bellco FCU. 

To learn more about credit unions vs banks for HELOCs and other types of home loans, get in touch with Bellco FCU. We have the tools and expertise to help you make the right decisions.