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If you are trying to decide where to place your money for safekeeping, banks are not your only option. Turn your attention to what credit unions have to offer their customers. Why should you look to this option for your banking needs? These establishments have three aims in mind. They encourage and support their members to save money on a regular basis. They also provide low interest rates loans for their customers, and they assist their members who are in need of financial assistance and advice. Credit unions are different than banks in that they act in the best interests of every one of their members. They work with the members to find financial solutions that are suitable for their income level and life circumstances. They do not allow their customers to apply for loans that they are unable to pay back. The income and savings of the potential borrower are carefully assessed. There is a cap on the amount of interest that these financial establishments are permitted to charge on personal loans. The cap is two percent per month or 26.8 percent per year APR (Annual Percentage Rate). In order to take advantage of the services available at these establishments, you must apply to become a member. There is no other way to become a customer than to join the organization. For example, if you want to take out a personal loan or a car loan you would need to become a member and set up an account before you could apply for a loan. Some credit unions require their members to build up some savings before they are willing to lend them money. They are customer oriented in every way possible. At the majority of these banking establishments, an average of one percent interest per month is charged on loans. Some charge their customers more while others charge them less. By law, they are not permitted to charge more than two percent a month (which is 26.8 percent APR). When it comes to loans at credit unions, no hidden charges exist and there are no penalties if you decide that you wish to pay the debt off early. Just as with a bank, you have the same responsibility to repay the loan according to the agreement. The majority of these places will lend for up to a period of five years on a loan that is unsecured, and up to 10 years on a secured loan, when collateral is provided (such as a car, boat, or house). Depending on the circumstances involved, some credit unions are willing to extend secured loans for up to a term of 25 years. Free life insurance is included at no additional charge to loan customers at these facilities. What this means is that if you pass away before the loan is paid in full, the balance will automatically be paid off for you. This offers peace of mind like nothing else can. For credit unions, Saginaw, MI, residents rely on Wildfire Credit Union. Learn more at https://www.wildfirecu.org.
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