Are Credit Unions for Everyone?
You've probably heard of credit unions, but do you know how they differ from banks? Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services. But as member-owned and cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates.
They lend their members money and typically charge very little interest on those loans. But many people don't know because credit unions are often stigmatized as being for special interests such as farmers or labor union workers who want to circumvent the banking system. The truth is, credit unions actually provide convenience, stability, and cost-sensibility for a variety of different groups.
So who are credit unions for? Credit unions are for everyone. They are the largest borrower group in America, and they have been used by all types of borrowers including small businesses, farmers, technical workers, and many others, including regular Joes.
The current structure of the banking system is designed for large financial institutions to be able to take on risks that will enable them to make huge profits, gain market share, and put more money into their shareholders' pockets. This structure limits access. Since credit unions are member-owned, they are not designed to maximize shareholder profits. As a result, they can provide better services to their members for a lower price. They are also based on a democratic model of ownership which allows borrowers to have a majority voice in how the credit union is run.
Becoming a member of any credit union is as easy as 1, 2, 3. First, you need to make sure you have an eligible affiliation with them (this usually means living or working in the area served by the credit union). Second, find out if the credit union offers its services in your area (many large banks are branch only and do not offer transaction services in specific areas). Thirdly, make sure the institution is insured by the NCUA (National Credit Union Association) so that your money in the credit union is secure.
If you are interested in joining a credit union, there are many excellent options available. There are about 7,500 credit unions in the country that provide a wide array of benefits to more than 100 million people.
Bundlefi can help you find the one that's right for you. Just enter a bit of information about the type of banking services you're interested in, and Bundlefi will provide a list of credit unions in your area that can meet your needs. Go ahead and take a look; there's nothing better than finding a credit union that fits you like a glove.