It is quite easy to make the elementary mistake of calling a bank a credit union (CU) and vice versa. However, both these institutions have quite a few differences that set them apart. The key difference between the two is the fact that a bank operates with profits in mind while a CU is a non-profit set up. While both provide financial help, their methods are slightly different. While looking for credit unions, Phoenix residents pick out one that has been around for quite some time.
Banks have been around for centuries and the idea of saving money in an institution is quite old. The idea of credit unions came about in the 19th century when financially unstable workers were given assistance through cooperatives. Thus, these special institutions came about because people required a little help with funds. Even today, CU’s keep this in mind while sanctioning loans to people all over the country.
The main reason why CU’s are popular among the general public is because they encourage people to save. In today’s world it is quite easy to exceed one’s spending capacity because of easily available credit. However, being part of a CU allows you to understand the need to save your money.
Once you start using money wisely you will notice that all your financial woes will begin to diminish. Being part of a credit union is something that you should think of getting into as it can stand you in good stead in the future. As a small businessman you will require a certain amount of money at some point and a CU is a better choice than a bank. With the number of advantages available you can easily find a loan option that suits you.
There has been lot of talks regarding the resources available to credit unions. Phoenix residents will tell you that some of these institutions have reserves that touch the billion dollar mark. This allows them to assist those who meet the credit criteria and require monetary help. Personal loans are a tricky business and sometimes you might have no other option open to you. While looking for the best credit available make sure you don’t make any hasty decisions. Many individuals end up with a below par loan because they chose the wrong institution. You should try your best to avoid this ugly scenario so that you can receive only the best.
