Many people believe that a credit union is the same as a commercial bank, but this is not the case. A bank is run by its shareholders but a credit union is run by its members, who do not have a vested interest in the operations of the credit union. A bank's customers come from all walks of life, there are no restrictions. However, a credit union is owned by a group of members and is run by such. The board of directors, which run the credit union, are made up of volunteers. They have a say in the day to day operations of the credit union. This is unlike a bank where the customers have no say in how the bank is run, unless of course you are a shareholder. Simply being a customer will not allow you to have a voice.
Because a credit union is run by its members, you can usually get outstanding rates on loans and mortgages. Credit union loans are usually much more desirable than a traditional bank. Insurance usually is not required at a credit union, the credit union absorbs the costs. Transaction or other hidden fees typically do not exist. Payments are calculated on the reducing loan balance. The more often you pay your loan, the lower the interest payments will be. There is seldom any pre-payment penalty or lump sum payments required. Credit union loans are much more flexible than their commercial banking counterparts.
Because credit unions are owned by its customers, unlike banks, it is possible to get the lowest rate on borrowing money. Most credit unions are non-profit and focus on serving the members instead of making profits.
Credit Unions are often made up of members of the same workplace or community. There may be a community credit union in your area. It may serve your geographical area. These are ideal for people who do not belong to a workplace credit union. The yellow pages can point you in the direction of one that is appropriate for you. Offers that the credit union makes is limited to their members only. It is important for the credit union to limit membership so it can maintain its standing. There are various regulations the credit union must adhere to maintain its status.
Credit Unions often offer the same services that a bank offers. There will be reduced fees and more of a family atmosphere. Because credit unions are smaller, many of the employees who work there retire from the same building they started in. Most credit unions do not have branches. Because of this, it is sometimes difficult if you use an automated teller. Because credit unions do not have the reach of regular banks, often members will need to use a foreign atm (at a different bank). This can be expensive. If you use a credit union, your best bet would be to find one close to where you live or not use it for withdrawing cash. There are many advantages to opening an account at a credit union, the personal service you get and a sense of family are just some of the reasons.
David Pierce is owner of Facts about Forceful Debt Collection aimed at informing people their rights when they owe money.
Source: www.articlesbase.com
