Credit unions

Credit unions are essentially non-profit banking institutions.

They are very similar in function to retail and commercial banks, and their services focus on individual consumers, startups, and small businesses.

Unlike other types of banks, credit unions only serve people who belong to certain groups, such as people who live in a certain region, people who live in low-income communities, active military personnel or military veterans, and so on.

Credit unions charge much lower fees than other banks, making them ideal for low-income individuals and businesses.

Here are the services that credit unions provide:

Extending Credit: Credit unions are best known for providing personal loans and business loans. They are only available to the demographic customers they serve. The advantage of these loans is how cheap they are to take out. The fees and rates are very favorable from credit unions. These loans range from auto loans to mortgages.
Accounts: credit union customers can open savings and checking accounts at their branches. Again, the cost of banking through a union is low because minimum bills and required fees will be low or nonexistent.
Credit Cards: Credit union branches can open lines of credit through the institution.
ATM services. Credit unions also offer ATM services, which are ideal for those who don’t qualify for debit cards and need access to their cash.
Student Loans: Credit unions often offer student loans with flexible repayment plans at relatively lower interest rates.
Retirement savings accounts for senior citizens looking for a place to save their money.
Secured loans and lines of credit: loans and credit cards for those with lower credit scores. This service serves as an opportunity for those with poor credit history to rebuild their credit history.
Notary services can be done through a credit union.
Credit unions offer many great banking solutions for those who qualify.

However, there are some caveats when it comes to the services that credit unions offer.

Factors that affect the availability of credit unions include:

• Community served.
• Demand for available services
• Current number of credit union members
• Control board goals
• Credit unions are controlled by an elected board of directors made up of their members.

This means that credit unions can vary dramatically in policy depending on the composition of the board.