by Schools Plus
Money is hard to come by, especially when you’re not paid generously and most especially if you are not employed at all. Yes, saving up for something takes so much time that sometimes it actually would be better to just borrow the money for it. Many people, including college students, have been struggling with debt caused by their borrowing of money from all the wrong places. This is particularly why some people just opt to go to credit unions to secure their loans. For those who do not understand much about what a credit union really is, take a look at this simple yet detailed explanation:
More and more people have come to credit unions for loans and most of them prefer them to banks. One of their most common reasons for this is that apparently, the credit unions are a lot cheaper than banks. But what really makes credit unions cheaper? Why are they more preferred to banks?
They are for people
One of the most popular answers to questions about how credit unions are cheaper than banks is that credit unions are made by people for people. Unlike banks which focus on making revenue and profit, credit unions focus more on the people and the service they provide. This is mainly because credit unions are created by people with same interests as the people that deposit and join them. Also, those who join them do not become their customers but become members that have a say in the union.
Lower to no fees at all
Because credit unions are made by people for other people of the similar community, they are very transparent and usually sympathize with the members. Because of these, they do not impose hidden fees and other miscellaneous fees that banks usually give their customers. Even if they do have such fees, they have so much lower fees as compared to banks.
More flexible and is more of an investment
With a credit union, a member does not have to worry much about being able to juggle a number of loans at once since they usually are very flexible with their payments and loans. Also, when a member pays to a credit union, they only use a little for operating costs, and some for their revenue but they also give back what is left to the member. The member actually makes some money out of his or her membership. With this, that best Cuisinart food processor that you have been trying to save up for would be easier to reach.
Lower and more affordable rates
There are a lot of things that one can really appreciate in a credit union, but what really makes it cheaper is that it has a lower rate than that of banks. Yes, credit unions do have more affordable and just plainly minute interest rates as compared with banks. The details about it make it clear that it really is on the member’s side. With this, it would really be easier to manage the bills without ending up drowning in debt.
Credit unions are now becoming more and more popular with people just about everywhere. And why shouldn’t it be? It is by far cheaper, more accessible, and just downright more convenient for people to go to rather than just sticking to banks who do not sympathize much with te consumer’s needs.
Learn how to find Community Credit Union by going to http://www.schoolsplusccu.org/what-it-a-community-credit-union-and-how-can-i-find-one/