Joining a Credit Union Instead of a Bank

These days, amidst the global financial disarray, making deposits in local banks or other saving institutions can be quite risky; the rising tide of bank failures across the country has left the industry in shambles. The current economic climate and the general concern about the ability of banks to insure deposits adds to the consumers’ anxiety over where to deposit their hard earned money, and what to do with loans and credit cards. If looking for comfort and safety, you need to consider doing business with one of these unions.

There are thousands of them available nationwide with federal or state charter. Although the commercial banks cater to larger corporate accounts and depositors rather than an average customer, the credit unions are cooperatives organized to meet the requirements and needs of their customers; their motto is “not for profit, not for charity, but for service. This motto resonates loudly nowadays, especially since their great rival, the banks, try to enhance their revenues imposing higher interest rates, fees and penalties. If you fall behind the minimum balance, delay a payment or bounce checks, the penalty will be exorbitant.

These financial institutions offer the same service found in other types of lenders such as direct deposits, bill payments, ATMs, credit cards and loans, insurance policies. In the past car loans were the basic products that attracted members, but this belongs to the past. Home improvement, personal emergencies, education and vacation are just some of the products and services provided by most of the unions today. The services and offerings are rising, with increasing number of them offering certificates of deposit, money orders and more products. These institutions are expected to keep growing, especially since trust towards banks keeps falling.

Credit unions are ready to serve people, while banks pull out of the community when the profit is not big enough. They are listed in the yellow pages, online, at the chamber of commerce, at lists found at workplaces. You can contact the union league in your state and check whether you needs can be met. If you are eligible to join you will simply become a member, making a deposit which represents your share.

Credit Union – An Option to Get Bad Credit Auto Loans

Bad credit is alarming and definitely not a great thing to have in your portfolio but with changing times, its impact on your life has reduced. If you are thinking of buying a car and have just realized that you have a bad credit score, well do not panic. Every minute millions of people of America are searching online to find that perfect solution of bad credit auto loan at reasonable rates.

And believe me the credit unions are actually trying to help you out by offering bad credit auto loans at reasonable rates. Wondering what is a credit union? It is a cooperative financial institution owned and controlled by its members whose business is to provide financial services and credit to its members.

While banks and auto dealers are nowadays equally enthusiastic about providing bad credit auto loans with attractive offers, you may have to pay a lot more because of higher rates of interest and longer periods of repayment. These financial institutions work with a motive of earning higher profits whereas credit unions serve their members by offering bad credit auto loans with reasonable rates.

Credit unions financing automobile have increased many folds in last couple of years because of their lower rates of interest and discounts. You can either contact credit union if you are a member of any or you can directly go to a local sub-prime auto dealer who offers you loan even with poor credit and gives you liberty to negotiate. After all loan is all about negotiation about rates. However it is better to approach a credit union because of their expert knowledge and professional service and you will know exactly where you stand.

You can get in touch with credit union online or over telephone or can simply walk into the nearest branch to seek information. There will be number of options open to you, but first ensure which bad credit auto loan program will work out the best for you. While dealers can get you that loan instantly, you will have to make rounds of the credit union to get that application for poor credit auto loan approved before you can give the check for the dealer.

Whenever you are applying for any bad credit auto loan, look beyond the attractive offers and do a proper search of their background even if it is credit union offering it. Make sure that you know your budget and check the payment terms so that you know that it matches with your payment options. If your bad credit loan payments are way beyond your affordability, it can actually bring down your credit standing further and this could be very risky while taking credit in future. And even when you have got the approval for your bad credit auto loan, do not handover the check before you have the deal in writing. If you do so, you are giving the dealer an opportunity to change the terms. Once you have the papers in your hand, now you can relax and be happy that you own a car even when you have a fair credit.

Why You Should Bank With St Louis Community Credit Union

St Louis Community Credit Union is a nonprofit cooperative financial organization that is organized for promoting thrift as well as offering credit to its members. It is owned by members and controlled by a board of directors who are elected by members. The board works like a volunteer and could hire a team to manage the working of the credit-union. It establishes policies and revises them, directs particular operations and sets rates of loans and dividends. This results in the members being provided a convenient, safe place to borrow and save at a reasonable rate in an organization that is determined to benefit them and not make profits.

Union and institutions

Stockholders own a majority of financial institutions. They own parts of the institutions with the intention gaining monetarily from the resources that they have invested. Credit unions do not operate in this manner. Every member of the St Louis Community credit union owns a share of the institution. One who uses the services of the credit union is an owner, too. All members can vote on issues that are important like electing representatives from members to be part of the board of directors. Let us go back in time to find out how credit unions started. Over a hundred years ago, the first credit cooperatives were started in Germany. Today, they are found all over the world. The movement of credit unions started in the US in Manchester in New Hampshire. A credit union affiliated to the church, St. Mary’s Cooperative Credit Association was opened there in 1909. One in three Americans is a member of a credit union today. The main purpose of the St Louis Community Credit Union in furthering its aim of service is for encouraging people to grow their money. it also wants to provide loans to its members. Credit-unions have been giving loans to average people since the time they were founded. They pay very high returns on savings and charge low rates of interest for loans as they are not for profit institutions. Instead of splitting the profits among stockholders, they return earnings to their members by way of improved services and dividends. All the savings accounts are insured federally up to $250,000. The retirement accounts are insured individually to $250,000 by NCUA, National Credit Union Administration. This is a federal government controlled agency. Those who attend school, worship, work or live in St. Lois City as well as St. Louis County in Missouri or Monroe, Madison, St. Clair or Jersey Counties in Illinois can become a member.

Members

Relatives of the members of the credit-union can also become members including children, spouse, sisters, brothers, grandparents, grandchildren, uncles, aunts, nephews, nieces, first cousins, legal guardians, in-laws, step and legally adopted relations. Once you become a member, you can enjoy the benefits of St Louis Community credit-union as long as you have an active account whether you move residence, switch careers or change jobs.