You might have grown tired with paying huge bank rates for your loans. Well, now you have a better alternative, because you can join a federal credit union and you can be sure that you will make economical deals. By choosing Navy Federal Credit Union, you will be a member of the largest credit union in the world and you will be able to have the same benefits as 2.4 million members already have. If you are wondering about the differences between a traditional bank and our federal credit union, you should know that the latter is a non-profit financial institution. A bank will give you a loan and it will charge you more, because the owners of the banks need to make profit. When joining a credit union you practically become one of the owners, so you will receive help, but you also help other people.
The foundation of Navy Federal Credit Union started in 1933 in the context of some rough economic times. It was then when seven civilian Navy employees decided to create a kind of saving club by pledging $10 each once at two weeks. Since then, the federal credit union they started has been growing into the largest credit unions in the world with assets of 25 billion dollars. Now you can be one of its members and have the same incredible benefits as the other 2.4 million members. You are eligible even if you have no association with the military, and your family members will be able to join too. In case you are in the military, there is no better place for you than the Navy Federal Credit Union. This financial institution wants to help its members, not to make profits from your needs as a citizen. In addition, if you are eligible to get in, why should you not take that chance?
One of the benefits offered to you by the Navy Federal Credit Union is that you can attend seminaries that will teach you everything about the process of buying a house. You can learn important information about this subject, because there are many formalities when trying to buy a property and you will receive help to get over them very easy. This seminar is completely free, so you do not have to pay any money for it. Moreover, after attending it, you will benefit from a $250 coupon, money that you can use as a fee for a mortgage loan application, in case you decide to buy a house for you and your family in six months after taking these “courses”. In case you already have a home, our federal credit union gives you the opportunity to attend other economic seminars that will increase your awareness as to the economic situations in your life.
Some other possible seminars you can attend will teach you everything about retirement, planning or minimizing the tax bite or will help you find the long-term care you need for a member of your family. As long as the Navy Federal Credit Union is a non-profit organization, you can be sure that we will only provide you the information you need and we will not try to convince to buy something you might not need or pay for some useless services. The purpose of a federal credit union is to be helpful, not to get benefits from you. This credit union is here to assist you at all the stages of your life and in many different areas that you might consider difficult.
In case you are in the military, there are special services the Navy Federal Credit Union offers because they concern your carrier. You can learn from us what to do before deployment and the information you and your family will get will help you handle deposits and payments automatically. We even give you the possibility to access your federal credit union from any naval installation. Moreover, in case of disability or death, your family will receive support, so that your family members should get easier over the moments of crises.
In Raleigh, North Carolina, new homeowners John and Jennifer Hall made a smart decision: instead of choosing a risky mortgage scheme from a bank — a decision that has been catastrophic for so many of their contemporaries, the couple applied for a loan through the North Carolina State Employees’ Credit Union (SECU).
The couple did their homework, and concluded that it made better sense to work with a non-profit financial cooperative to purchase their first home. Aside from lower fees and closing costs, SECU did something the others didn't: a credit-union employee sat down with the couple to explain the pros and cons of the various mortgage options. Because credit union employees are non-commissioned, there was no pressure, enabling the couple to see the credit union as a trusted advisor.
"There are so many young folks who don't realize the advantage of going with a co-op," says John, who believes that all North Carolinians benefit from non-profit financial cooperatives that help to keep other financial institutions in check by ensuring citizens remain eligible for competitive rates and fees. "Being a member can make a tremendous difference in your financial life!"
You Belong
Are you are frustrated with your bank? You may be tired of paying endless fees, high interest rates and receiving poor customer service. And in light of the current financial crisis, you may find yourself among those with good credit experiencing trouble getting a car or home loan, the result of tightened lending standards due to the banking industry’s own.
Fortunately, you have options.
Credit unions offer are a fresh alternative to corporate banks while providing the same kinds of services. As a credit union member, you can open a checking or savings account, buy a certificate of deposit and get a loan. Some credit unions can even help invest for your retirement or take financial planning courses before you buy your first home.
Credit unions are co-operative businesses, owned by members (depositors) who share something in common, such as where they work, live or go to church. Because credit unions tend to be smaller and cater to a select group of people, you can expect a more personal relationship between the staff and the members.
Unlike commercial banks that generate profits for owners and outside shareholders, credit unions channel profits back to members in the form of lower fees, better interest rates and higher dividends. According to the American Banker/Gallup poll, credit unions consistently rank high among consumers for service and customer satisfaction every year since 1983.
Keep Your Money Safe
Credit unions have emerged as a safe haven for consumers. Because credit unions avoided the risky loans and exotic investments that brought down so many banks, they remain relatively untouched by the recent financial crisis, credit union members have peace of mind knowing their money is safe.
Credit unions are financially solid because they stick to conservative banking practices, such as requiring down payments and income verification on mortgage loans. While many banks were chasing ever more exotic ways to make money, credit unions stuck to the basics.
Many people are leery of putting their funds in the hands of a credit union because they believe the credit union isn’t FDIC insured. Nothing could be further from the truth. Like banks and savings institutions, credit unions deposits are insured up to $250,000 by the federal government, providing the same level of protection for investor assets as any banking institution.
Credit Unions Still Lending
Commercial banks have recently curtailed lending, even people with good credit. The result is that many consumers are having trouble getting home and car loans due to tightened lending standards.
This is not the case with credit unions, which continue making loans available to people with good credit histories. In fact, credit unions are now experiencing higher loan volumes as consumers turn to them in greater numbers since the recent banking sector meltdown.
According to the CUNA, credit unions made 36 percent more small business loans in the first half of 2008 than the same period in 2007, a reflection in part of the ability of credit unions to lend while banks horde cash.
Now, as conventional banks avoid lending even to credit worthy buyers, credit unions are poised to take a much larger share of the traditional lending business – including homes, cars and small business loans.
Join a Credit Union Today!
Though once associated with trade unions, hospitals, universities and other large employee groups, credit unions are increasingly open to the general public. There are also “select employee groups” that offer credit union members to a network of affiliated businesses.
You'll find many reasons to join a credit union, including:
As of 2005, there are 9,346 credit unions in the United States, which means that just about any consumer can find a credit union they are eligible to join.
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If you are looking to borrow some money to pay for a dream holiday, buy a car or make some improvements to your house, it's likely that your first port of call in looking for finance will be your bank. After all, you already trust them to look after your money and their current loan rates are good so why go anywhere else?
While it's certainly convenient to approach the bank for a loan, the process of applying for finance can be a rocky road and, at the end of it all, you might find that your income isn't enough to finance the repayments. Similarly, if you've had credit problems in the past it's highly likely that you'll be forced into punitive interest rates or having your application turned down together. If this happens, you might then try your luck with one of the multitude of loan companies who advertise on television and in the press, or found on the internet. However, there is another option that many people don't know exists: the local credit union.
Credit Unions are financial co-operatives owned and controlled by their members. They generally operate in areas where low incomes are common and offer savings and great value loans to customers. Another benefit of Credit Unions is they are local, ethical and know what their members want. Each Credit Union has a 'common bond' which determines who can join. This bond may be for people who live or work in a particular area, work for the same employer or belong to the same association or club, such as a church or trade union.
Credit Unions work by having members pool their savings together, which can then provide a fund from which are made to other members. Borrowers then pay interest on the money loaned to them as they would if the loan had been through a bank. As the money in the fund belongs to individuals, the credit union 'rents' the funds from its savers, who each year receive a dividend from the money they rent to the credit union. As a result, credit unions should offer its savers a good return on the money that is placed in the fund.
In order to operate, a credit union must be successful in attracting a sufficiently large amount of savers to enable it to hold sufficient liquidity to enable it to meet members' requests for loans, share withdrawals and overheads. Furthermore, dividend payments to savers and the credit union’s operating costs have to be met out of the credit union’s profits, so a strong fund is essential for the credit union's success. As the main source of income for a credit union comes from the interest charged on members' loans, it is very important that the credit union be proactive in marketing the benefits and availability of their services.
For peace of mind, credit unions have to be registered and regulated by the Financial Services Authority, who also regulates banks, building societies and all other providers of financial services in Britain. Furthermore saving members of credit unions are protected by the Financial Services and Compensation Scheme (FSCS), who provide a safety net for customers of financial firms in the event of the firm going out of business.
When looking for finance, it is normally good practice to shop around the various resources available to get the best deal on personal loans. For some, this will involve trawling the various banks on the High Street in search of a good rate, while others will turn to the internet and price comparison websites in order to find and compare loan rates. However, bear in mind that if you can't find a deal to suit, or if the bank says 'no' it might be worthwhile having a chat with your local credit union - they might say 'yes'.