| The time has come and you need to make the | | | | profession or geographic area. Banks, however, do |
| decision of where to ask for a loan. This is no easy | | | | offer a wider range of services, and are often more |
| task if you have a so many options. This article will | | | | accessible to customers. In the case of traveling, you |
| discuss what the differences are between bank and | | | | will find it easier to find your branch in all parts of the |
| a credit union so you have a better understanding. | | | | country. |
| Credit unions are different from banks. Credit unions | | | | Another difference between banks and credit unions |
| are financial institutions where you as an owner of an | | | | is that the profits go different areas. When you are |
| account own a part of that union. Loans are offered | | | | doing business with a bank the investors are gaining |
| at a lower interest rate and many credit unions exist | | | | profit form you. Credit unions, however, are |
| to further community development or sustainable | | | | non-profit entities. In other words the profits are |
| international development on a local level. In this case | | | | shared between the members of that union in the |
| the interest rates policies are decided by a Board of | | | | form of lower interest rates and higher dividends. |
| Directors elected by you as a member. Credit unions | | | | Also credit unions offer more personalized dealings |
| are also similar to banks in the sense that they offer | | | | where as banks have many members to cater for |
| the same services. They, however, use different | | | | and are more impersonal. This is a matter of personal |
| terminology; for example: share accounts (savings | | | | preference, some people might prefer to be more |
| accounts), share draft (checking) account, credit | | | | comfortable with mass-produced services or they |
| cards. Also the only person to deposit money into | | | | might want to feel more personal when dealing with |
| the account would be the member of the bank. | | | | their money. Credit unions and banks are all different, |
| Therefore you need to become a member of the | | | | meaning a bank can differ from another in terms of |
| credit union to do anything in terms of money | | | | their interest rates and the same goes for credit |
| including a loan. | | | | unions. Therefore you need to go do some |
| Banks are simple and most people know what a bank | | | | homework and don’t worry it’ll take you |
| is about. When you need a bank loan you should | | | | less time than watching a commercial break. You |
| consider all the options. The bank will normally, in | | | | need to go on different bank and credit union sites |
| contrast to credit unions, offer you a higher bank | | | | and compare rates this is really easy. |
| loan. In other words credit unions offer a lower | | | | When choosing between a bank and a credit union |
| interest rate but a lower sum of money to have | | | | for a loan, that choice should reflect your own |
| access to in terms of loans. Also when applying for a | | | | personal self interest, and should be decided after |
| bank loan, you can be assured that banks will serve | | | | examining your particular financial situation. The |
| your financial needs with very little questions asked, | | | | bottom line is that you should take an interest in |
| but credit unions usually offer a membership to a | | | | your interest. |
| specific class of customer, whether it is defined by | | | | |