First central bank of credit unions appeared in 1876. Credit unions began to appear rapidly in many European countries. Credit unions perform the function of social protection in a vital for people sphere of financial services. They care about improving the financial literacy of the population, are working on the formation of their members and their employees. Most modern credit unions represent specialized consumer cooperatives of citizens associated by the principle of social community: place of work, place of residence, profession, or any other shared interest. The main activities of credit unions, aimed at the organization of mutual aid and social support of citizens is not intended to profit. Unlike banks credit unions limit their activities to a closed circle of people. The first credit union in the United States was founded in 1909. by the group of Franco-American Catholics in Manchester, New Hampshire, and was called "Cooperative Credit Association of St. Mary. " Credit unions of the open type are still controlled by their members, but at the same time provide services to people who are not its members (external customers). In some cases, the initiators of credit unions can be trade unions, associations such as social support centers and others. Credit unions, like today's credit unions, emerged in the 19th century in Germany as a result of crop failure and famine.
Credit Union Location in Colorado
Most modern credit unions represent specialized consumer cooperatives of citizens associated by the principle of social community: place of work, place of residence, profession, or any other shared interest. The main activities of credit unions, aimed at the organization of mutual aid and social support of citizens is not intended to profit. Credit unions perform the function of social protection in a vital for people sphere of financial services. They care about improving the financial literacy of the population, are working on the formation of their members and their employees.
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Main share of credit unions assets is concentrated in loans (about 50%), while the share of consumer loans in commercial banks and finance companies active operations rarely exceeds 15%. The most common type of loans in credit unions are loans to purchase new and used cars (40%), followed by first mortgages and second mortgages (35%), about 10% are unsecured personal loans to member of unions and about 15% - are loans on credit cards and other loans. Credit unions attract people in the first place by the opportunity to get cash loan (credit) - quickly and relatively inexpensively. The relationship between credit unions and shareholders arise from the membership and are not customer relationship. Members of credit unions place in credit unions usually free fund balances, ie those that remain after expenses devoted to education of children, the acquisition of new properties, additional pension benefits, etc. Credit unions encourage the proper use of shareholders savings, developing social programs (education, health, recreation, housing, etc.). Cooperation between credit unions, how they would not have been named, took place always, from the moment when the movement moved outside one credit union. Until the 70's there was a proliferation of the U.S. credit unions due to the increase of their number and the number of shareholders, although it must be acknowledged that there was also and a qualitative growth. To get a loan in the credit union a shareholder must be not only a formally adopted there, but necessary pay in cash contributions, the amount and order of payment of which approved by the General Assembly and fixed by the charter.