Find your Hidden Money
When you sign up for loans, you pay them within a year, 5 years at most. Individual credit unions offer special loan rates that are beneficial to the borrower. A number of people consider signing up for credit union loans.
The features of a credit union loan are:
- The insurance of the loan isn't a direct cost to the eligible borrower
- There is an offer of a repayment protection insurance
- There are no hidden fees or transaction charges whatsoever
- Repayments are calculated depending on the reducing balance of the total loan. Smaller interest repayments are relative on how frequent you repay your loan.
- There is a variety of repayment loans to choose from, depending on the livelihood of the borrower.
- It is so flexible that the borrower can repay the loan before the due or he can make large repayments than what had been agreed on without any penalty whatsoever.
- The additional lump sum repayments the borrower has paid will be accepted without penalty.
Credit Unions are like banks but the former has some unique characteristics. It is often mistaken as banks when in fact , an educated customer would take advantage of the best deal that is offered at Credit Unions and not at banks.
First and foremost, credit unions are owned by the customers. This is as opposed to banks where the possible clients are the customers. Banks prioritize profit and the shareholders usually own the bank.
On the other hand, credit unions are organizations that are non-profit. Their goal is to provide service over profitability.
One might ask, if the bank has shareholders who run the management of the institute, then who runs the credit union?
The upper management is composed of board directors deciding on the operations of the credit union. These are elected volunteers. They don’t do it for the salary. They are the members who want their opinion to be heard on how the institute should be run.
One can be a Credit Union member if they share a common bond. These are people of the same geographic community, a workplace or a religion.
That’s why credit unions are different to banks. That’s because their offer is limited to their members. But it’s harder for them to achieve credibility because if a credit union isn't able to limit membership, then they lose their status as a credit union.
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