Introduction
A credit union is a non-profit financial cooperative, which is owned, operated and controlled by its members. Since ownership is restricted primarily to its members, it is able to offers a better return to its shareholders in the form of lower interest rates on loans and higher interest rates on deposits. As a financial institution, county credit unions aim to promote and provide a wide range of services and to encourage financial stability both in a personal and professional context.
Step 1
While many county credit unions aim to provide their services to those people who can’t get access to ordinary bank products, they are also perfectly suitable for those individuals who want to bank ethically and to benefit the community at large. Membership to credit unions is often restricted to individuals of a particular area, professional association or community.
Step 2
There are certain avenues you could use to locate county credit unions in your area, one of the most common ones being the internet. You could also try your yellow pages or make an inquiry at your local Citizens Advice bureau.
Step 3
County credit unions work by pooling the savings contributed by members, to provide loans to members and help run the institution. Credit unions help members to control their finances by encouraging them to save what they can and borrow only what they can afford. The services provide by a credit union are not-for-profit, since the accumulated savings are used to provide its services to members and reward members in the form of dividends.
Step 4
To ensure that their funds are kept safe, county credit unions will limit the amount of funds they will lend out to members and avoid investing the money into anything that holds too much risk. Additionally, all of the money deposited with a credit union has the same FSCS government protection as ordinary bank savings accounts.
Step 5
County credit unions offer a wide range of services, the most basic ones being the disbursement of loans, provision of savings/bank accounts, and prepaid cards. county credit unions are one of the most common avenues to access small loans, ranging between $80 to $5,000. Most people who borrow these amounts would only be able to resort to payday loans or doorstep lending, which typically charge higher rates for their loans. Credit unions also provide some type of savings account and provide members with prepaid credit cards.
Tips
In the past, most county credit unions held on to a steadfast rule; not to lend to members who had not accumulated some amount of savings. But this is changing, as some credit unions are opting to lend to individuals who are new to the organization. The interest arte charged on loans is typically 1% a month or 12.7 % APR, but some credit unions may be willing to go as low as 6% on their loans.
County credit union loans can be beneficial to members, due to the fact that there are no hidden charges or penalties if you pay off the loan early. They will also typically include life cover as a part of the loan, at no extra cost. Therefore, if you die before you pay off the loan the insurance will repay the loan for you.
