To increase the number of credit unions in 1979 was adopted the corresponding law that serves as the legal basis of their activity. A credit union on its own initiative order is created by citizens (individuals) to solve their financial problems that they could not solve in other financial institutions. Like the credit cooperatives, credit unions form associations of a higher level, which are called corporate credit unions. U.S. credit unions have another significant difference from the credit cooperatives of farmers: the first have major proportion of short-term loans, the second - long and mostly in real estate. Credit unions attract people in the first place by the opportunity to get cash loan (credit) - quickly and relatively inexpensively. Among the U.S. credit unions, there are three groups that differ in terms of assets, shareholders, and business services. Activity of the credit union consists of organizing mutual financial assistance by meeting the needs of its members in the services of saving and obtaining loans. Credit union services are available only to its shareholders. Historically, credit unions were preceded by widespread development of credit cooperation in many countries of Europe and America. Corporate credit unions are united on a cooperative basis in the Central Credit Union (US Central Credit Union).
Credit Union Location in Utah
Like the credit cooperatives, credit unions form associations of a higher level, which are called corporate credit unions. U.S. credit unions have another significant difference from the credit cooperatives of farmers: the first have major proportion of short-term loans, the second - long and mostly in real estate. A credit union on its own initiative order is created by citizens (individuals) to solve their financial problems that they could not solve in other financial institutions.
Select your city for
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. Unlike banks credit unions limit their activities to a closed circle of people. The difference between credit unions and banks is clearly is apparent when comparing the structure of assets and liabilities of credit unions and banks. Credit unions appeared in England in the 19th century. In 1844 a group of workers from Rochdale established the first 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. Borrowing rate for the credit union is a source of income to cover the administrative costs. All excess funds are returned to members in the form of dividends on savings.