In the modern economic and financial climate, it is becoming increasingly difficult for people to borrow money or even perform simple financial tasks like opening a bank account. However, options do still exist even for those that believe there are none. Credit unions offer an ethical and more beneficial means of saving or even borrowing money than banks offer. You can save as little or as much as you like every week or month, and once you have established a relationship with your credit union you will usually be able to access an even greater range of services too.
Credit Union Savings
One of the main reasons for joining a credit union is the access that it offers to beneficial, ethical banking. Rather than lining the pockets of city investors, when you save with a credit union, you can benefit other members of your community or the group of people that are members of your credit union. The money you save is used to finance loans for people that need them and the interest paid on these loans is then used to pay annual dividends on your savings.
Credit Union Loans
Once you have established a savings history with your credit union it may be possible for you to borrow money by way of a credit union loan. These are a hugely beneficial alternative to loans like payday loans and cash advance loans, which can attract interest rates that easily reach 200% per annum or more. Credit unions are not allowed to charge more than 2% per month and this means that even if you have struggled to get a loan previously you could benefit from low interest rates on a loan that can be used for any purpose.
Credit Union Bank Accounts
In January 2012, the UK government changed the rules that govern credit unions in such a way that the typical credit union is now able to offer more services to its members. It has taken some time for these products to hit shelves, as it were, but one of the more recent additions is a service that is very similar to that of a bank’s current account. For those that have struggled to open a bank account, the problems are immediately obvious, and a credit union bank account can prove very useful indeed.
Credit Union Insurance
All credit union services and products include life savings insurance. If you die then your credit unions savings could be as much as doubled and the money paid to your chosen beneficiary. Similarly, if you die while still repaying a loan, it means that your loan will be paid by the insurance so the family you leave behind doesn’t need to worry unduly about this.
Finding A Credit Union
There are many credit unions that offer membership to new users. All have some eligibility requirements and these do differ from one credit union to another. Some are geographically based while others are related to the company or industry in which you work. Check for eligibility for unions and then look for one that you are able to join. Consider the area you live, the area you work, and even church or other group membership to find the most suitable credit union for your needs.
Credit Union Membership
Credit union membership does offer a wide range of benefits. You can look for such unions in your Yellow Pages, at trade union meetings, or via group or committee memberships. Alternatively, you can search our directory of credit unions in order to find details of the most pertinent unions and their requirements for membership.