Is it a Right Decision to choose Credit Union?
Being a member of the credit union would mean that you also need to have a common attachment with others. Being a member of the credit union is like being a part of an exclusive housing association in your locality, of a trade union in your work and many others.
Saving Money with Credit Union
Credit unions could provide you with the opportunity to open an account. You cannot directly make a loan with the credit union for there is still a need for you to save with them for a particular span of time. You may need to wait for some time like months for example. And right after that, you can instantly make a loan. The money that you want to save would really be up to you.
You should see to it that you could save an amount even if it’s small. Each year, a dividend would be given to the members. An amount coming from the dividend will be placed on your savings account. Talking about the interest rate that you need to pay for loans, you need not worry much about the amount for credit unions that have the lowest interest rate among all other financial organizations.
Loan Application in Credit Union
If you are planning to apply for a loan, you should have a reason for wanting one and you must be a regular saver. If you happen to be a member for a long period of time, the bigger is the chance that you can apply for a loan. Because the credit union is a nonprofitable institution, you would not pay much for the interest.
Details on Insurance
If you happen to apply for a loan, there would be insurance for you as a member. The insurance pays the loan if you die. With a credit union, you are entitled to receiving life insurance that can be used when you die since your specific beneficiary would gain an amount twice on what you have invested.
And so, with credit unions, you are assured that your money is safe and secured with the chance also of borrowing. Because credit unions are operating for the sake of their members, they offer special low-interest rates that are far different from the banks. Anyone can easily apply to become a member so that they could also experience the benefits of the services.
Credit unions are known organizations that provide financial support and assistance. They actually differ from the common banks that we have. They started having a small number of members that had grown vastly. They do not operate just to gain profit. They operate to aid the needs of their members. The members of the said union have their own say on the operations and management aspects. You should know that these credit unions had started their operations more than a hundred years ago.