Credit unions

G

Godfather

Registered User
Messages
602
Hi there,

sorry, I'm a bit shy in asking this because for many of you it's a stupid question but... What are the main advantages of credit unions compared to banks pls?:confused:

In Italy (Sicily included) as far as I know these institutes do not exist...:(

THANK YOU FOR ANYONE WHO COULD PROVIDE ME WITH AN ANSWER...:)
 
The advantage is that they are more flexible than banks in both approving loans and agreeing repayment schedules.

The disadvantage is that you may have to have money on deposit with them to borrow in the first place and the rate (the true APR, not the nominal cost) may not be the best available.
 
In my experience there are now better rates offered by other financial institutions for deposits than credit unions in my area offer.
 
Not sure I would agree with Ccovich re Credit Unions are more flexible etc re loans. Maybe in the past, but banks now competing with them. It will be interesting to see the battle between the banks and the credit unions regarding car loans over the next three months. The advantage with credit unions is their convenience, opening hours etc and the traditional way of paying off small loans weekly. I think their usefulness will drop when SSIA money matures. Fewer people will require loans. On the other hand they are making no effort to introduce new saving products - they simply do not want deposits. Joe1234 is correct - their interest rates are very low. My prediction is soon credit unions will have to diversify and introduce new products.
 
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