subject: Know the Advantages of Credit Union [print this page] Know the Advantages of Credit Union Know the Advantages of Credit Union
Debt undoubtedly wrecked havoc in national and personal financial domains and made us run after several debt management plans and debt relief options. However, the detrimental financial situation of people led to the creation and popularity of certain services of which Credit Union is mentionable. A credit union offers a variety of financial services just as a bank does including checking and savings accounts, ATMs, loans and online banking services and so on. Credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), a private insurance fund backed by the federal government. Every person with an account at a credit union is a member and this makes you a partial owner of your credit union. You will get to vote on who you want to serve on the Board of Directors and this board will help guide the direction of the credit union. This means you can provide input about what financial services you would like provided through the credit union. Thus through your credit union you can not only open checking, savings or money market accounts, you can also avail for a credit card with low or no annual fee and lower interest rates, mortgage or a car loan. Credit unions offer personal loans with affordable repayments to fellow members that need to borrow money. Those lending money benefit from interest on their savings. In addition to the basic services that you expect at a financial institution, you may also find that your credit union offers notary services, credit counseling, financial education and investment services.
Moreover, Credit unions offer higher interest rates on your savings, money market and CD deposits than you can typically find at banks. They also offer lower interest rates on your mortgage, auto loans and credit cards. These better interest rates are a result of the non-profit arrangement in which credit unions pass profits back to the members in the form of better interest rates. The other services offered by credit union are Personal loans and savings accounts, Loan protection insurance, Individual Savings Accounts (ISA's), Mortgages, Funeral plans, Debt management. Added to it, credit unions are famous for their excellent customer services. Since each customer of the credit union is also a member, the customer service level at credit unions is known be very helpful and result oriented and has ranked higher in customer service than other banks. Credit unions consist of regular people seeking to gain a better understanding of money management. The aim is to encourage members to regularly save money. Lending money is a perilous activity when dealing with low income families so those seeking to borrow money will need to prove affordability. However, it is only possible to join a credit union where a common bond exists with other members. Typical examples include belonging to the same trade union, living or working in the same area and working for the same employer.
