When you sign up for loans, you pay them within a
year, 5 years at most. Individual credit unions offer special loan rates that
are beneficial to the borrower. A number of people consider signing up for
credit union loans.
The features of a credit union loan are:
- The insurance of the loan isn't a direct cost to the eligible borrower
- There is an offer of repayment protection insurance
- There are no hidden fees or transaction charges whatsoever
- Repayments are calculated depending on the reducing balance of the total loan. Smaller interest repayments are relative on how frequent you repay your loan.
- There is a variety of repayment loans to choose from, depending on the livelihood of the borrower.
- It is so flexible that the borrower can repay the loan before due or he can make large repayments than what had been agreed on without any penalty whatsoever.
- The additional lump sum repayments the borrower has paid will be accepted without penalty.
Credit Unions are like banks but the former have
some unique characteristics and an educated customer would take advantage of
the best deal that is offered at Credit Unions and not at banks.
First and foremost, the customers own credit
unions. This is as opposed to banks where clients are the customers. Banks
prioritize profit and the shareholders usually own the bank.
On the other hand, credit unions are
organizations that are non-profit. Their goal is to provide service over
profitability.
One might ask, if the bank has shareholders who
run the management of the institute, then who runs the credit union?
The upper management is composed of a board of
directors deciding on the operations of the credit union. These are elected
volunteers. They don’t do it for the salary. They are the members who want
their opinion to be heard on how the institute should be run.
One can be a Credit Union member if they share a
common bond. These are people of the same geographic community, a workplace or
a religion.
That’s why credit unions are different from
banks. It’s because their offer is limited to their members. But it’s harder
for them to achieve credibility because if a credit union isn't able to limit
membership, then they lose their status as a credit union.
That’s why there’s hidden money to credit unions.
Credit unions offer the same services and products as the larger banks do but
the credit unions don't have the same amount of volume as the banks.
Small credit unions can challenge banks when it
comes to the income they generate. Credit unions have the tendency to focus on
service over profit, that’s why the rate is always better at the credit union.
Don’t worry. Your money will be as safe in credit
unions as it will be in bank deposits. As explained above, because of the
cheaper down payment a member gives to a credit union, compared to the bank,
there is hidden money for him.
Another direction you could look at is hidden
money on home equity loans. As a homeowner, home equity loans allow you to use
your equity as the collateral.
The hidden money here is that since it is a debt
on your property that is in your possession, and secures your debt loan. If the
creditor wants his money back, then it can be sold.
A home equity loan can either have a fixed rate
mortgage or an adjustable rate mortgage.
The expenses that make a home equity loan useful
are medical bills, debt consolidation and home repairs. The tax benefit for
families who have home equity loans can enjoy a home equity rate loan that is
charged as tax deductible. It is because the loan is used for primary
functions. All these means lower monthly payment rate – allowing you to save
more.
It’s always practical to save on your expenses.
That is why as much as possible we suggest that you look up credit unions as
opposed to banks and you sign up for home equity loan than the home mortgage.
If you write it on a piece of paper, you’ll discover that you can actually save
more with credit unions and home equity rates.
Image courtesy of rbs.ac.mu
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