by Schools Plus
A Community Credit Union is a credit union that serves a specific area. The community credit union is a federal credit union and operates like all other credit unions in that the members actually own the credit union.
The membership in a community credit union is essentially limited to a particular region and can be a city, county or even a state. The benefit of a community credit union is that it focuses on a geographic area as opposed to a profession, union or business enterprise.
In that it focuses on a geographic area, it is able to see the needs of the communities it serves a little better and thus be able to make changes in it’s policies as member offerings making it a much more focused in terms of community needs.
Many community credit unions also offer excellent rates on car loans as they have an extra level of security knowing that the members of the community credit union will not normally move out of the area and thus if there was an issue with having to repossess the car, that would be an easier thing to accomplish.
Also, housing loans with a community credit union will also be better as the credit union has a much better idea as to what will be happening with the community as a whole when it comes to the housing market. A federal credit union that served the entire country would not be able to access the housing market as well and would have to rely on out of area appraisers to understand the real estate market.
Community Credit Unions are not all about loans of course, they are very concerned with giving the local members a good rate of interest on their savings accounts and keeping fees and costs down for their checking accounts. In that a credit union is actually an instrument that is primarily concerned with serving it’s members and one of the ways to do that is to keep expenses to the members to a minimum and give as high an interest rate available as well.
Many community credit unions offer an excellent plan to save for retirement in addition to having Christmas Clubs to save for the holiday season. The thought process is to do everything possible to ensure that the members are not stretched financially when it comes to their retirement days and of course everyone can use a little extra cash during the holiday season.
In short, a community credit union, which is as stated above, a specific type of federal credit union is one that will always be looking out for it’s membership in any way that a credit union possibly can.