Differences Between Banks and Credit Unions

Differences Between Banks and Credit Unions

Banks and credit unions are different financial institutions. Although they offer the same types of services such as checking accounts, savings accounts, and loans, credit unions, and banks have several important differences.

If you trust a financial institution with your money it’s important to know how they operate and how other organizations operate.

1) Banks are privately owned profit-seeking organizations and credit unions are nonprofit organizations owned by their members.

Banks are privately owned and the goal is to make a profit. Credit Unions are owned by their members and non-profit organizations. If you have a bank account you don’t own the bank. If you have a credit union account you are a member and own part of the credit union.

2) Banks and Credit Unions are insured By Different Organizations

Banks are insured by the FDIC (The Federal Deposit Insurance Corporation) and credit unions are insured by the NCUA (National Credit Union Administration). In this tough economy with several financial organizations going under it is important to realize how your money is insured and who is insuring your money.

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3) Board of Directors

Board of Directors governs both banks and credit unions. Banks “board of directors chosen by the stockholders.” Credit union board of directors is “elected by, and from among, those members” of the credit union. In other words, if you are a member of a credit union and meet the criteria to be a director you could be elected to the board of directors. Directors on a bank’s board of directors are often paid for being board members. Directors on a credit union board of directors are volunteers.

4) Rates

Credit Unions generally offer better rates on loans and credit cards since credit unions are not-for-profit organizations. Credit Unions generally pay higher interest on savings accounts than banks as well.

5) Membership

Banks are open to just about anyone. Credit Unions are limited by their charter. However, most people are able to join some type of credit union. The credit union I belong to is open to anyone who lives, works, or worships in Washington County.

My credit union is fairly limited by location. A bank, on the other hand, could have branches across the country which is great if you need to handle banking issues while traveling.

How to Get Money Quickly when the Economy is in Crisis

How to Get Money Quickly when the Economy is in Crisis

To get a personal loan these days in the United States is very simple. First, you just need to find out who are the lenders that lend loans even to borrowers with bad credit. To do that, just browse to a website like OpenLoansUsa.com and submit your loan request.

For example, if you are looking for a personal loan in California, just open this page, submit your personal and banking details, and wait a few minutes. Then, if connected to a lender, you just need to finalize your application at the lender’s page and they will guide you through the rest of the process. After that, you will probably need to give them some information and you will have your loan in a very short period of time.

Direct lenders often deposit the money straight into your account other times they will give the cash on the spot. You will usually get the money the very same day you apply for it. The only thing you need to do is to make the lender understand your request for how much money you are applying for and then fill out the basic information necessary for them to process your loan.

After you receive the loan, it is imperative that you understand you must repay the loan on time. A lot of lenders providing personal loans are very strict when dealing with their borrowers. They may treat you very well in the beginning and this will remain the case if you hold up your end of the deal, however, if you do not repay at the terms that you have agreed to your relationship with the lender will suffer.

A personal loan is a contractually binding agreement between you the borrower and the lender. You are under contract to repay the lender back in the allotted amount of time determined by the agreement you sign.

If you do not repay the lender on the terms of the contract it could mean serious financial consequences to you (the borrower), especially if this happens more than once.

When you borrow money and repay it in monthly payments over a long period of time it is an installment loan.

A payday loan, for example, is typically paid back in a matter of days or by your next paycheck. Lenders of payday loans do not usually extend the repayment past your next paycheck.

Online is the best way to obtain a personal loan. You don’t have to drive around wasting your time and gas to find the lending institutions to loan you the money. On the internet, all the companies will be right there for you and you can easily pick and choose the best agreements and interest rates in the comfort of your home. After you fill out the application and are approved you go to your closest ATM and get the money.

You will want to make sure you can pay these loans back in the time period set in the agreement by the lender. The loan facilities dealing with short-term loans do not usually perform a credit check. This means that even if you have a low credit score you should be able to obtain a loan. The borrower just needs to show proof that they have the income necessary to repay the loan in the time allowed by the lender.