Reasons to Join a Credit Union

by | Apr 26, 2013 | Finance

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Many people have been a member of a credit union for years and possibly never contemplated its exact function. A credit union can be explained as financial cooperative that is owned and controlled by its members. Many credit unions offer other financial services to their members, such as low interest rate loans, but they also support develop in the community. The status of a credit union, for legal purposes is ?not for profit?, as opposed to ?non-profit? as with a charities. A credit union?s ?not for profit? differs simply because the union was created to in order to help locals get loans and financial help rather than to make money as a financial institution. Therefore, credit unions are allowed to make small profits?generated by the low interest rates on their loans?to serve members and reinvest in the community.


One main reason to join a credit union in Carson City is because a credit union is member owned and member controlled. This differs from a bank and is far more community based and community concerned. They offer advice on retirement funds, college funds and estate services in the exact same way a bank does, but the credit unions don?t just let anyone become a member. A bank can allow anyone in the country to have an account, but that account holder may have to meet certain criteria. A credit union still requires some criteria, but it is not the same as a bank. Credit unions have to limit their services to local members of the community who share a ?common bond?, for example the same workplace or town of residence. This makes a credit union more of a community service based institution rather than a financial giant in the world of commerce.


Other Reasons they Differ
Another main reason to join a credit union is because of the low rate loans you can acquire. You will still need to meet the credit union?s criteria for acceptance, but you do have a better chance with them, even if your credit is not a shining example of how it should be done. Because you are a member and you work locally and live locally, the credit union will likely grant you a loan based on that, where a bank may turn you down. Also, your interest with a bank is likely to be a few percentage points higher than a credit union, so financially it does pay to check interest rates and conditions before you take out a loan. They can keep their loan interest rate low because they only serve local people and small groups, instead of millions of people on a countrywide basis.


If you are thinking of joining a credit union or just require more information, simply call in at your local credit union branch and speak to an expert. You may find that it?s more like joining a small family who can help you own when you are financially stuck.


To join a credit union in Carson City, call in at Great Basin to find out about their services and options.

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