How Did Credit Unions Start? And What Do They Do?
What do credit unions and pie have in common? They both started with sugar, butter, and flour. Unlike pie, however, credit unions got their start with the Industrial Revolution. If you’ve ever wondered why credit unions exist today and what these credit unions do, then dig into the next few paragraphs. They’ll tell you how credit unions began and give you an idea about whether a credit union is right for you.
The First Credit Unions
First of all, how did credit unions become a necessity? After all, banks already existed long before credit unions showed up. The answer comes from the Industrial Revolution. Before the Industrial Revolution, people generally bought and sold goods from one another. Food, for example, came directly from farmers. Once the Industrial Revolution showed up, though, most of the available work moved to factories. A lot of people struggled to adjust to this change, which meant that they struggled to get the basics that they needed every day.
That struggle is why the Cooperative Movement got started. A few communities in Europe pooled money together and opened cooperative stores. These stores sold basic necessities (like sugar, butter, and flour, for example) so that their communities could stay afloat. Eventually, members started using their pooled money to offer credit to the community. Thus, the first credit unions were born.
What Do Credit Unions Do?
Credit unions have obviously come a long way since those early days. Today, credit unions offer the same services that banks offer. The services include:
● Checking and savings accounts
● Debit cards and ATMs
● Fixed savings options such as CDs
● Credit and loans
Basically, if you can get a service from a bank, then you can get it from a credit union, too.
What Don’t Credit Unions Do?
Is there anything that credit unions won’t do? There is one main thing, but it isn’t a service. Credit unions will never put profit above their members. That’s because credit unions aren’t businesses. They’re nonprofit organizations designed to provide their members with the services that they need. As a result, credit unions offer better interest rates, rewards programs, and other perks.
Find Your Credit Union
Finding your perfect credit union is like finding the perfect piece of pie. Once you find it, you’ll know it. The key is knowing where to look. That’s where Bundlefi comes in. At Bundlefi, we connect people with the credit unions that have what they need. Take a look at Bundlefi today to learn how we can help you find your credit union.