It is quite easy to believe right now that there are no other choices because the standard means of having credit has become so basic that being at the mercy of increasing interest rates and inflated charges on loans and credit cards has become so basic too. However, there is this unknown alternative which is called the credit union movement.
A credit union is being run by its members which serves as a profit sharing and financial co – operative. 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.
However, you have to keep in mind that maximizing profits is not the main goal for a credit union.
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The first important aim of a credit union is to encourage and help its members to 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 render help and support to its members in the management of their financial affairs is another goal of the credit union.
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.
Thus, the credit union will surely help you save money regularly regardless of your income, employment status, age and most importantly credit rating, as long as you are a legitimate member and as long as you abide the rules of the credit union. This means that you can still become a credit union member and save money regardless of your status symbols.
Using the sum of all members’ savings, the credit union is then able to provide low cost financial services to its members. All other necessary profits are used in order to provide the lowest interest rates for members’ loans whilst returning an attractive rate of interest for its savers, however, an enough amount of money must be secured first in order to ensure the stability of all the finance.
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.