To date, credit unions - virtually the only form of financial institution where people can quickly and without any problems get a relatively inexpensive cash loan. Credit unions also differ from the traditional consumer cooperatives. When organizing the credit union it is important that people know each other and know the extent to which each of them is trustworthy. Until the mid-XX century, credit unions in the United States had little assets that did not exceed, as a rule, 100 thousand dollars The main activities of credit unions, aimed at the organization of mutual aid and social support of citizens is not intended to profit. A potential new member of a credit union must submit a recommendation of shareholders in which the referee becomes a warrant of a future member of the credit union.
Credit Union Location in North Dakota
When organizing the credit union it is important that people know each other and know the extent to which each of them is trustworthy. Until the mid-XX century, credit unions in the United States had little assets that did not exceed, as a rule, 100 thousand dollars Credit unions also differ from the traditional consumer cooperatives.
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Some credit unions are closed, serving only their members. However, the more and more popularitywin cooperatives of open type. Principles of cooperative democracy and interaction were adequate to the purposes for which people joined credit unions. First Credit Union was savings unprofitable institution, or rather credit cooperative, providing services to its members. The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks. Among the U.S. credit unions, there are three groups that differ in terms of assets, shareholders, and business services. Credit unions are financial institutions, financial cooperatives of citizens, and in this capacity they are above all associations of people, not unification of capitals, which is typical, for example, for public companies. On the consumer credit market in the U.S. credit unions are on the third place after the commercial banks and finance companies and are ahead of savings institutions, not taking into account the loans on real estate. Unlike banks credit unions limit their activities to a closed circle of people. Credit Union - one of the most attractive financial institutions for the public being a non-profit alternative to banks.