Credit Unions

Credit unions have traditionally been leaders in auto lending, and car loans frequently constitute a large part of their business, unions are founded on the principle of self-help: in the long term, outside funding can weaken and dilute this principle. Outside funding may also encourage a credit union to take decisions that might not be undertaken under normal growth conditions and that at a later stage may be detrimental to stable development. Credit unions, which are not-for-profit, membership-based financial institutions, have not been exposed to the same losses that major banks have seen in mortgage investments and elsewhere. Anecdotally, I’ve heard that in recent weeks small business owners have been turning to credit unions for financing.

Credit unions are often much smaller and naturally more conducive to this. Credit unions (and coops in general) are the only forms of medium-large scale business that make sense. You get a share of the proceeds, you get a vote, the money circulates locally helping the community, no sleazy business, no investments in Third World Hell-holes and the workers have more input than any capitalist corporation.

Credit unions were designed to be cooperative financial institutions for people who share a common bond. Members of a credit union may work for the same company or organization, attend the same college, serve in the armed forces, belong to the same church or live in the same community. Credit Unions often form cooperatives among themselves to provide services to members. A Credit Union Service Organization (CUSO) is generally a for-profit subsidiary of one or more credit unions formed for this purpose.

Credit Unions exist solely to improve your financial wellbeing. There are no outside shareholders. Credit unions have more locations and more ATMs than many of the largest banks. They belong to CO-OP Network, a network of 28,000 ATMs nationwide, which is available to 26 million credit union members across the country. Credit unions are easy to join. To become a member, you generally have to pay a low initial fee to join.

Credit unions are mutually owned by their members, not by stockholders. Thus, all else equal, both higher ROA and higher interest expenses (which are interest incomes to credit union members) signal that credit unions are providing greater benefits to their members. Credit Unions can also have deposit accounts.

Banks and credit unions are both financial institutions where you can have checking accounts and savings accounts. Members control their credit unions; each member has one vote. Only members can use their. Members of Congress and economists on both sides, from conservative Steve Forbes to Obama stimulus champion Mark Zandi, have criticized mark-to-market for making the crisis worse.

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Gurmit loves travelling; he has been over 70 countries. He speaks fluent Cantonese, Polish, Hindi, Punjabi and English. Gurmit is an author, writer, insurance and mortgage expert. He frequently writes on various topics of interest to his readers. Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa.

Gurmit Singh, mba
Mortgage Expert
M08009905
Dominion Lending Centres Mortgage Villa (11574)
Email:gurmit@gurmitsingh.ca
Website: http://www.gurmitsingh.ca