Credit unions make people become an owner when they become a member of it. Therefore, the ownership status provide many privileges.
Lower Rates (Cards and loans) / Higher Rates on Savings Account: Credit unions provide low rates for mortgages, car loans and credit cards. People can have fee-free accounts. You do not need to pay a minimum balance to have an account, and this makes people feel safe. Additively, relative to banks, they give higher interest rates for saving accounts and deposit accounts.
Forgiving qualification standards: In banks, when the customer applies for a loan or credit card, his credit score is calculated according to credit history. If this history is not appropriate fort he bank, he could get rejected. However, credit unions forgive people in this position much more.
Strong existance in the community: For the people who are pleased with their profession or their neighborhood, it is great to play a part in their betterment. Credit unions have a positive impact on the community in a way that they give grants and scholarships.
Education about saving money / Credit Assistance: If the credit score of a customer is low, a credit assistance helps the customer in order to avoid debt, increase his credit score and make plans for short and long-term. Also, financial advisors are available for anyone who is a member of credit union, and they make financial workshops and educate the members.
Credit unions consist of two types as federally insured and privately insured. Federally insured credit unions are organized by NCUA. Privately insured credit unions are state- chartered in opposed to federally insured ones. One example of credit union type is emloyer credit unions. This credit unions are for the people who are working at specific organizations or working for government agencies. Government employee, military member, police officer, teacher, postal employee are some example jobs who can use a credit union.
One example of credit union type is emloyer credit unions. This credit unions are for the people who are working at specific organizations or working for government agencies. Government employee, military member, police officer, teacher, postal employee are some example jobs who can use a credit union.
The other example is college credit union. Customers of this credit union type are student, alumni, college staff, their families etc. These customers can become a member of credit union for how long they want, not just for the time they studying or working at school. These credit unions offer private student loans, financial workshops, scholarships, banking at campus etc.