Historically, credit unions have grown from the experience of credit cooperatives, but they took the experience of organizations of mutual aid of citizens by moving methods of social self-protection from labor and toward consumption. At the organization of the credit union it is important that people know each other and know the extent to which each of them is trustworthy. Like the credit cooperatives, credit unions form associations of a higher level, which are called corporate credit unions. Credit union services are available only to its shareholders. Today in the UK there are about 700 credit unions with assets exceeding 200 million pounds. In the credit union compensation for use of the loan (interest) is a source of compensation for savings. Consumer loan and reliable savings - these are the main goals, which mean "natural persons" having decided to unite in credit consumer cooperative. Membership in the credit union is voluntary and is open to all citizens bound by with joint work or residence, who wished to create a credit union to use its services and are willing to take on relevant commitments and responsibilities. The specifics of credit unions and, in some sense, their uniqueness lies in the fact that they work not for profit and do not appropriate profit.
Credit Union Location in South Dakota
Like the credit cooperatives, credit unions form associations of a higher level, which are called corporate credit unions. Credit union services are available only to its shareholders. At the organization of the credit union it is important that people know each other and know the extent to which each of them is trustworthy.
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Shareholders in corporate organizations are basic credit unions, besides the same union can be a shareholder of several corporate organizations. The specifics of the credit union as a credit consumer cooperative is that it is a form of mutual financial assistance of citizens. To reduce the risk of default on loans members of the credit union shall the joint guarantee. 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. Unlike banks credit unions limit their activities to a closed circle of people. Credit unions appeared in England in the 19th century. In 1844 a group of workers from Rochdale established the first cooperative. Credit unions also differ from the traditional consumer cooperatives. Some credit unions are closed, serving only their members. However, the more and more popularitywin cooperatives of open type. The specifics of credit unions and, in some sense, their uniqueness lies in the fact that they work not for profit and do not appropriate profit.