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Many people are under the misconception that only
banks are the institution to go to if you require a loan. The truth is, there
are numerous options you can avail but only if you know where to go. For a
student, the most common need for a loan is to help pay off their college
tuition. Without procuring financial aid, the students cannot afford to go to
college.
Apart from the fee, there are plenty of other
expenses to manage as well. These expenditures comprise lodging, food, medical,
and miscellaneous such as hiring the services of online
assignment help. Even if they do get their
loan approved, the students must also consider whether they can afford the
interest rate. That is why you need to know all your options before you make
the decision that works best for you.
Both banks and credit unions have their own set of
pros and cons. To decide which of the two is suitable for any particular
individual or organisation depends on their own needs and the types of services
offered by each of them.
Online
support and services
Banks
have been known to provide quality online services for quite some time now
related to funds transfer, investments, charity, account statements,
tax-related statements, dining, shopping, and health services to name a few.
Though credit unions have recently begun to venture out towards online apps and
services, their services, quality of services, and server handling capabilities
are more limited compared to banks currently.
Over time as their online expertise grow, we can
surely expect credit unions’ online services to improve significantly but
presently; they have a long road ahead to be able to compete with banks’ online
offerings.
Types of
organisations
Banks are for-profit businesses, while the credit
unions are non-profit organisations. This means that banks have to look out for
their shareholders’ welfare and make as much profit as possible while obeying
all the rules of the land. Credit Unions, on the other hand, have no such
requirements. Since the institution is member-owned, the credit union takes
decisions that will prove to be profitable for its members as opposed to
focusing on ways to satisfy their stockholders.
Eligibility
requirements
Most people assume that getting a membership at a
credit union is a tough task. On the contrary, it is as easy as can be. If you
are part of a particular community, for instance, a workplace, church, or
region, you may be eligible to attain a credit union membership without even
knowing it. All you have to do is find out with the credit union in your
community.
Interest
rates
If you compare the rates placed on credit cards,
loans, mortgages, etc., you will be surprised to see a huge difference among
both institutes. The interest rates of a credit union will be significantly
lower than the rates offered by a bank. Similarly, if you want to invest your
money via your savings account, the rate of interest will be higher than the
ones offered by a bank.
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