Article by Andrea Stiles Pullas
Difference between a Credit Union and a Bank. A credit union is different from a bank. It is a financial institution that is owned by its members. If you open an account at a credit union, you become a partial owner of the credit union. Credit unions generally offer the same services as a bank and often charge lower rates for services and pay higher interest on savings accounts.
Benefits of Using a Credit Union. The majority of credit unions are non-profit organizations that are dedicated to serving a particular population. Many credit unions are very helpful and friendly to immigrants. Credit unions encourage and help their members save regularly through payroll deduction and direct deposit. They allow members to borrow money at low interest rates, and help members use their money wisely by providing financial services and education at low or no cost.
How Does a Credit Union Work? A credit union is operated by its members. The members elect a volunteer Board of Directors to oversee operations and work with the management to meet the goals of the credit union.
Where to Find a Credit Union. For a list of credit unions near you, visit the National Credit Union Administration or call them at (800) 358-5710. You’ll hear an electronic message that includes the name and telephone number of a person at the Credit Union League in your state who can help you find a credit union to join.
How to become a Credit Union Member. Most credit unions serve a specific population with a common bond whether it is language, religion, or a common interest. It is really easy to become a member of a credit union.
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Tip: Before you join a credit union make sure it is the best option for you. It is a good idea to compare the services that both banks and credit unions in your area offer and see which financial institution fulfills your needs the best. Upon deciding to join a credit union, make sure you are an active member so you can help change or maintain policies since you will be a partial owner.
Andrea Stiles Pullas writes about ways to build and maintain good credit for immigrants to the United States for AccionUSA href=”http://yourmoney.accion.org/site/c.cqLMI2OGKrF/b.2626837/”>Your Money and You.