Nowadays, it is easy to believe that there is no other option since the standard means of having credit has become so common that being at the mercy of increasing interest rates and inflated charges on loans and credit cards has become so common. However, there is this unknown alternative which is called the credit union movement.
A credit union is known to be a profit sharing and a financial co – operative run democratically by the member of the union itself. Statistics also shows that the popularity of the credit union movement in the UK is continuously increasing since the union itself offers a more financially attractive alternative to the standard products offered by the banks.
The organization has three main goals that need to be achieved since maximizing profit is not their main concern.
9 Lessons Learned: Money
The first goal of a credit union is to help its members save money.
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The next goal of the credit union is to probably ensure the financial needs of its members and assist them with their finance in times of need in any way possible at the lowest interest rates.
To offer its members help and support, if required, in the management of their financial affairs.
Lastly, one of the most important goal of the credit union is to let everyone know that by being a member, you will surely gain a lot of benefits.
The common bond is usually the secret to becoming a member of the credit union. The common bond determines if you reside in that specific area, thus, the common bond will determine whether you are qualified to become a member of the union or not, however, there are also possible factors that will make you as a member aside from residing in that area, you are also qualified if you are working as an employer in that specific area, or maybe if you are a member of a specific club or association.
Because of this, credit unions welcome everybody from within the common bond regardless of income, employment status or age and also – and perhaps more crucially, regardless of your credit rating or if you are unable to save a regular amount. This means that you can still become a credit union member and save money regardless of your status symbols.
The credit union can surely provide low cost financial services to its members with the use of the sum of all members’ savings. Although each credit union (as all mutual societies) must ensure that enough money is set aside to ensure financial stability, all other profits are used to provide the lowest interest rates for members’ loans whilst returning an attractive rate of interest for its savers.
In order for you or your business to borrow a money, you have to see to it that you are a member of the credit union and that, the money must be entitled to you.