Credit unions are a fantastic way for people who are desperate for a short term loan but don’t have the credit rating or score to obtain one.
Credit unions are a non profit organisation, but are regulated just as any bank, whose members are the share holders, and are entitled to a summary report of the company’s progress just as any share holder.
The fantastic thing aobut credit unions, since they are not aimed at making a profit like a standard bank, any porfits made is given back to the share holders as dividends.
Credit unions usually accept membership from people located in their local area.
It works by members agreeing to save a regular amount every month, it can be as small or as large as the member wishes, and they can with draw that money whenever they want with no penalities.
Credit unions also offer loans, which is the primary reason many people join them as their loan APR (Annual Percentage Rate) is significantly lower than you would find in any bank or building society, so it is very attratice for those desperate for a loan but do not want to pay extortionate rates.
Long term members are also entitled to a loyalty advance, a kind of short term loan, again at very low interest.
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