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Steps To Applying For A Home Loan

17. March 2017 Administrator Home Loans (0)

A credit union is a non-profit cooperative that provides home loans at low interest rates to its members. The organization aims at passing on the profits to the members and therefore adds a lot to their savings. It is important to be clear about the home loan requirements so that you can easily purchase the home of your dreams.

Below are some steps that you need to follow while applying for a home loan:

Get pre-approval: In simple terms, pre-approval is a written application that states how much amount the lender will let you borrow. This document is necessary so that you know exactly how much you can borrow and how much money you need to put from your side. This will help you divide your budget according to the monthly expenses. Various factors such as employment history, credit score, down payment etc. are taken into account while pre-approving a home loan.
Make the offer: After zeroing down a particular property, you need to prepare an offer in consultation with your real estate agent. Offer contains details such as purchase price, closing date and the time period for which the offer holds good for you. This is given to the seller who can accept or reject it. If your offer is accepted, you need to get home inspection done from a qualified professional.
Complete the loan application: After coming to a conclusion regarding the price, you need to complete the loan application formalities. The lender will determine the terms and conditions of your loan, ask you to complete the loan documents and may also demand additional documents. These can include: pay stubs for the past few months and tax return details etc.
Get the interest rate locked: Locking the interest rate with your lender ensures that it does not go up while your loan is still getting processed. This is imperative because home loan interest rates can fluctuate on a daily basis and you would want the lowest interest rates for big financial savings.
Go through loan processing: In this step, your home will be evaluated to judge its market value. Apart from this, the lender will review your loan application, cross-check the documents, verify the financial information and also check the title details to ensure that all the legalities are in place.
Closing: During the last stage, your home loan documents will be sent to a title company so that you and the seller can duly sign them. A photo identity proof along with the down payment amount is required for closing. Apart from this, many other documents such as loan note and deed etc. need to be reviewed and signed.

We, at Greater Central Texas Federal Credit Union offer affordable financing services in Killeen, TX. To know more about our credit union, call us at (254) 690 – 2274.

Steps To Get A Home Loan

28. February 2017 Administrator (0)

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Ways To Pay Off Your Car Loan Faster

17. February 2017 Administrator Car Loan (0)

Applying for a car loan seems like a ‘cake walk’ with credit unions. In addition to low interest rates and less paperwork, these lending institutions offer various benefits to make the deal more profitable for the clients. However, a loan comes along with a huge responsibility of repaying the borrowed amount with added interest.

If you are looking for efficient ways to save some money on interest and pay your loan before time, you may consider the following points.

Round up your payment – To shorten your loan term and save money on interest, you can round up your payments. For example, if your monthly loan payment is $384, consider paying $400. This may look a small amount in the beginning but it can help to reduce your loan period several months than expected. Apart from this, a round payment is easy to calculate and you do not feel overburdened by paying a little extra from your pocket.

Pay after every 2 weeks- You may strike a deal with your credit union to allow biweekly payments, instead of paying at the end of every month. This will offer the following benefits:

Since you will pay more often, less interest will be added on your money
You will be able to pay extra amount every year
Tenure of your loan payment will reduce

Pay extra at least once a year - If you cannot afford to pay biweekly payments, you can pay at least one extra payment every year. This can be done by adding a certain additional amount, say for instance $30, which may become equivalent to one month's payment. This will help you to stay ahead in your repayments and shorten the mortgage period.

Avoid skipping a payment- Option of not paying a payment may seem lucrative at first, but it does not provide any long term benefits. It will eventually extend your loan period for months and increase the rate of interest. Therefore, you must not skip a payment until and unless there is an extreme urgency to do so.

Save extra bucks – In order to pay your loan quickly, you can always save some extra money. If you have a part time job or any other source that gives you money, try to put it towards repaying your loan. Even if you collect $100 every month, you’ll be able to save $1200 every year.

Refinance your loan – A credit union may offer extremely low rates on auto loans, which can lower your repayment amount and decrease the loan period to almost half. Eventually decreasing the overall cost of your car loan.

Pay bill online – Credit unions offer discounts on signing up for paperless statements, as it saves the time of the lender as well as the payer.

Some of the advantages offered by paperless billing procedure are–

There are no checks to write
No paper statements filling up your mailbox
You get timely payment reminders
24 hours access to your account
You can pay from anywhere at any time
Security of your data
Provision for automatic payments

Paying your auto loan early gives incredible benefits. You can save a lot of money and utilize it to upgrade your home, pay off other debts, save for your retirement etc.

We, at Greater Central Texas Federal Credit Union, offer affordable car loans with minimal rate of interests. You can either choose from unsecured or secured car loans. Our staff will assist you with the loan application and all the paperwork involved in the process.

For more details, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX 76542.

Pros And Cons Of Home Loan Modification

25. January 2017 Administrator Home Loans (0)

Home loan modification can be a good option for borrowers who find it difficult to pay their monthly mortgage installments. It is also sometimes helpful in avoiding a foreclosure and saving the lender from having to deal with the process. Lenders also suggest applying for a loan modification, particularly if the borrower is experiencing a temporary financial crunch. It provides the assurance that he will resume making timely payments over time.

What Exactly Is Home Loan Modification?

Home loan modification refers to the process of altering the terms and conditions of a mortgage agreement. It is usually requested by the borrower and on being approved by the lender, the loan repayment is then governed by the new contract. The lender may either approve or reject the application for home loan modification, depending upon the current financial condition of the borrower.

If you are planning to apply for a home loan modification, given below are certain pros and cons that you must consider before making the final decision:

Pros

Extended Loan Term

A shorter loan term implies higher monthly installments. This is the reason why most borrowers opt for a longer loan duration. However, when you extend the repayments to several years, you ultimately tend to pay more as interest. Home loan modification provides a convenient alternative to increase the loan term, without changing the rate of interest. The lender may extend your loan term initially, making it convenient for you to make the monthly payments.

Reduced Interest Rate

In a home loan modification, the lender may also reduce the interest rate for a short time period. This may be done to reduce the monthly installments and allow the borrower to recover from the financial crisis. In such situations, the loan conditions are re-evaluated to determine the amount you can easily pay according to the current debt-to-income ratio. The interest rate may then be temporarily reduced and gradually increased according to the market conditions.

Save Money For Other Liabilities

If you have another pending loan, such as an auto loan, student loan or credit card bill, getting your home loan modified may help you to save money to pay for these. With lower mortgage payments and lesser interest rate, you will have significant money to pay down each month towards other financial liabilities.

Cons

Strict Eligibility Requirements

In order to qualify for home loan modification, you need to convince the lender that you are genuinely facing difficulty in making the monthly mortgage payments. He may verify your credit rating, current financial position, other liabilities etc. to ensure that you are eligible for the program. You may need to provide a number of documents stating all your sources of income and monthly expenses, Due to the extensive paperwork involved in the process, getting a home loan modified may take approximately 30 to 180 days.

Negative Impact On Credit Score

People who apply for a home loan modification would obviously have some sort of financial crisis, which may be perceived as a risk by the future lenders. Applicants with a good credit rating and a flawless record of loan repayments are generally preferred by most lenders. Thus, modifying the home loan may greatly affect your future borrowing abilities, specifically if you are planning to get a higher amount.

Can Be A Risky Proposition

Home loan modification can be a real risk, particularly if you have not done your research. If the lending institution has proposed modifying the home loan, it does not necessarily mean that they will not initiate the foreclosure process. Though it may be true in some cases, you may have to leave your home while the loan modification application is still being reviewed by the lender.

Considering the above pros and cons, it is important to evaluate all your options before applying for a home loan modification.

Greater Central Texas Federal Credit Union is a leading credit union in Killeen, TX providing comprehensive financial services to the clients. We offer flexible home and auto loans at low interest rates and with easy repayment options. For more information, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX 76542.

Auto Loan For Students: How To Get The Best Deal

19. January 2017 Administrator Auto Loans (0)

Owning a car is quite a big deal for students. It gives a sense of independence, freedom and a personal transportation to commute through the busy roads. However, owning a car comes with a lot of financial obligations. Though auto loans offer a good way to cover up the expenses, you must invest a lot of time and efforts to make sure that you get a suitable financing plan.

Given below are some tips that can help you get the best deal on an auto loan in Killeen, TX:

Choose The Right Car

Though you may be excited about buying your first car, it is important to make a well-informed decision about the right make and model. The price of the car is a prominent factor that determines the amount of loan you need to apply for. Make sure that you can easily afford the monthly loan payments along with additional expenses such as fuel, insurance and maintenance costs.

Research The Available Financing Options

Get quotes from multiple financial institutions to get the best possible rate on your auto loan. You can also visit a credit union as they offer loans at quite low interest rates. Make sure you completely understand the terms and conditions of different loan plans before you finalize anything. You can choose from a secured or unsecured auto loan, depending upon your requirements and budget.

Work On Your Grades

Credit unions in Killeen offer a lower interest rate to students who have a high grade point average (GPA). This is due to the reason that such students are considered responsible and are likely to be punctual in their monthly payments, thereby minimizing the risk for the lender. If you have a low or average GPA, you can consider working on improving it so that you are able to get a better interest rate on your car loan.

Pay A Higher Down Payment

The more money you can pay upfront for your car, lesser will the amount that you need to borrow. Making a large down payment will not only decrease your loan amount, but also the interest payments and monthly installments. Plan your car purchase well in advance so that you can start saving for the down payment. Borrowing a small amount of money will reduce the risk for the lender, allowing him to make a better offer on the interest rate.

Go For A Short Term Loan

Just like most students, you may consider buying an inexpensive or used car till the time you are able to afford a better model. Hence, it is quite likely that you would not want to keep on paying the loan for a span of 5 to 7 years. A better alternative is to choose a short term loan so that you can pay it off quickly and start saving for your next car. Though this may mean that you will have to pay larger payments every month, you can save a lot in terms of interest.

Know Your Credit Score

Though many students have never checked their credit score, it is important to do so when you are applying for an auto loan. Maintaining a good credit score will not only increase your chances of getting approval for a loan, you will also be able to secure a low interest rate. This, in turn, will allow you to make significant savings throughout the loan duration.

Get A Co-Signer

The credit rating of your co-signer can greatly impact the rate of interest quoted by the lender for your auto loan. Make sure you do not choose your parents or relatives as co-signer. Rather, opt for a person who has a good credit score and helps to lower your overall auto loan costs.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans from students in Killeen, TX. You can either choose from unsecured or secured car loans. Our staff will assist you with the loan application and all the paperwork involved in the process. For more details about the auto loan plans offered, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX 76542.

Credit Union: Benefits Of Membership

27. December 2016 Administrator Blog (0)

Since many years, credit unions have become a preferred choice of people who are looking for affordable and reliable financial services. Though they seem similar to other organizations, membership at a credit union comes along with many additional benefits to maximize benefit for the clients. Whether you are looking for an affordable home/auto loan or looking for beneficial savings and investment options, credit unions can offer you the most liable solution.

Given below are some of the benefits of becoming a member of a credit union in Killeen, TX:

Low interest financing options

The most significant benefit of joining a credit union is that you can avail home and auto loans at low interest rates. Being a non-profit organization, credit unions are exempted from paying the state and federal taxes which allows them to offer affordable financing options. Also, there are no stakeholders to share the returns and all the profits are directly returned back to the members.

Easy application process

The process of applying a loan at a credit union is quite simple and straightforward. It does not involve extensive paperwork and the staff provides complete assistance through the entire process. You just need to fill out the form and submit the necessary documents. The processing charges and other fees are also minimal.

Quick loan approval

When you apply for a loan at a credit union, you can expect to get approval within a few days. In case of a secured auto loan, there are no rigorous background checks to be performed. The collateral provided by the borrower serves as a security against the loan amount. Therefore, such loans are usually approved within 48 to 72 hours.

Quality customer service

The staff at the credit union works with the sole purpose of providing convenient and superior services to the members. They provide personal attention to each client and help in resolving their queries regarding financial transactions. The customer service representatives are very knowledgeable and responsive to the clients’ concerns as well as feedback.

Volunteer board of directors

Unlike banks, credit unions are member owned and operated organizations. The board of directors are elected and nominated by the members every year. The board then formulates the policies and monitors the working of the credit union.
Equal rights

Being a member of a credit union makes you a part-owner along with the right to say in the governance matters. All members can share their opinion and provide suggestions regarding new policy, irrespective of the amount of money in their account.

No stringent rules on minimum account balance

Credit union members are not liable to maintain a minimum balance in their account. They have complete freedom to withdraw as much money they want from their account any time. Also, the checking and savings accounts are federally insured by the National Credit Union Administration (NCUA) to provide complete security for your deposits.

Dividend on savings

At the end of every year, credit union members are entitled to attractive dividends on their savings account. All the profits earned by the organization are returned to the members in the form of dividends and attractive loan rates.

Hassle free account access

Credit unions in Killeen have a well-developed ATM network that allows you to withdraw money anytime and anywhere. You can even avail personalized services during the office hours or opt for online account access to view your loan summary and the financial transactions related to your account.

Lifetime benefits

Credit union membership offers lifetime benefits. You can continue availing the financial services even if you change your job, or place of residence. Some credit unions even allow you to nominate your immediate family members to become a member and avail the same benefits.

Additional services

Apart from loans, credit unions also offer a wide range of other financial services to the members. Some of these include low rate credit cards, payroll deduction, ACH origination, direct deposit, notary service, MasterCard gift cards, wire transfer etc.

Be a member of Greater Central Texas Federal Credit Union to avail a wide range of financial services. For more information, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX 76542.

Things To Consider When Deciding On A Loan Term

19. December 2016 Administrator Auto Loans, Home Loans (0)

Getting a loan has always been a daunting procedure. No matter you are a first timer or have prior experience in going through all the mortgage paperwork, there are a lot of things that need to be considered. You should perform a thorough research and evaluate all your options to ensure that you are making the right decision.

If you are planning to finance your home or vehicle purchase, one of the most important factors to keep in mind is the duration of the loan. There are both short and long term loans available. Here are some details on both types of loan plans:

Short term loan: A short term loan is usually for less than 3 years and is a good option if you want to save money in the long run. A smaller duration implies low interest rate and less amount repaid at the end of the loan tenure. However, you may need to pay more in terms of monthly repayments.

Long term loan: These can be defined as the loans that last for more than 3 years. These are generally preferred by borrowers who want to pay low monthly payments, despite of the fact that they end up paying more as the interest. Long term loans can either be secured or unsecured.

Things to consider when deciding the home or auto loan term:

Age: The age of the borrower has a major influence on loan term that he may be eligible for. Whether you are getting a loan from a bank or credit union in Killeen, make sure you inquire about any specific age criterion that they may have. Most lenders do not provide loan term loan to individuals who are nearing their retirement or have already exceeded that age. In such cases, you can either opt for a short term loan or inquire if you can allot a younger applicant to make the remaining payments post your retirement.

Your income: Your income is also an important factor in determining the amount of loan repayments you can conveniently afford every month. To select the most suitable loan tenure, keep in mind your total income from all sources and the financial liabilities you have to bear, i.e., insurance payments, kids’ education, home rent etc. Therefore, you should choose a plan that allows you to easily pay off the loan in the minimum time period while retaining sufficient savings for unexpected circumstances, such as a medical emergency.

Amount of loan required: The higher amount of money you borrow, more will be your monthly installments and interest payments. Hence, you should try to apply for a smaller loan so that you can pay the least amount of money at the end of the loan tenure. This way, you will not only be able to pay off the loan early, but also make considerable savings on interest payments.

Rate of interest: Comparing the interest rate quoted by the credit union is also important while deciding on the loan term. Depending upon whether you are opting for a variable or fixed interest rate, your overall loan payments may vary. For variable interest loans, you may have to pay higher monthly installments in case of a long term loan. This may be due to the fluctuations in the market rate over the span of years. Short term loans, however, may not be affected much in this case.

After evaluating all the factors, the general consensus is that you should opt for a home or auto loan that offers the lowest interest rate and for a shorter duration. However, make sure that you are able to pay the monthly installments without any sort of financial burden.

Greater Central Texas Federal Credit Union is a leading credit union in Killeen. We offer a wide range of home and auto loan plans at low interest rates. You can also avail many other financial services by being a member of the credit union. For more details about our services, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX 76542.

Unsecured & Secured Auto Loans: Which Loan Is Best For You?

24. November 2016 Administrator Auto Loans (0)

If you are planning to finance your next vehicle purchase, you may have come across the terms 'secured loan' and 'unsecured loan'. Though both the types of auto loans offer varied advantages, it is best to understand the differences between them to decide which one would be a better option for your particular situation.

Given below is a complete comparison of unsecured and secured auto loans to help you make a well informed decision:

Unsecured Auto Loans
In this, the lender approves the loan on the basis of the credit worthiness of the borrower. There is no need to provide any form of security to the lending institution. Once the borrower submits the loan application, the lender evaluates his current financial resources and previous credit records to determine if he will be able to pay back the amount along with the interest rate.

The typical characteristics of an unsecured auto loan are as follows:

Interest Rate: The rate of interest quoted for each borrower may vary. Depending upon the borrower's income, credit rating, other financial liabilities and the amount of loan, the lender may charge a reasonable interest rate.
Premiums: The borrower can either buy the loan at a fixed or variable interest rate. In the former one, monthly premiums remain constant throughout the duration of the loan. However, in a variable interest rate, the installments may keep on changing according to the current market conditions.
Borrowing Limits: The loan amount that can be sanctioned in this case depends upon the value of the car you are planning to purchase. Usually, you can get a certain percentage of the total cost and the remaining has to be paid by you.
Loan Tenure: Unsecured loans are available for both short and long term. Short term loans generally have high monthly installments but you end up paying less interest.

Secured Auto Loans
A secured loan can be defined as the one in which the borrower is required to put forward a collateral, usually the vehicle itself, against the loan amount. In case the borrower fails to pay back the loan and interest amount within the stipulated period of time, the lender has the legal right to sell the collateral to recover the money.

The typical characteristics of a secured auto loan are given below:

Interest Rate: The rate of interest quoted for a secured loan is comparatively less. Putting forward a valuable collateral minimizes the risk for the lender as he can easily recover the loan in case the borrower fails to do so.
Premiums: Secured loans are generally offered on fixed interest rates. Therefore, the premiums remain constant throughout the duration of the loan.
Borrowing Limits: If you are planning to purchase a luxury car, you should go for a secured loan as it has higher borrowing limits. You can borrow more money against a collateral of similar value, thus, minimizing the investment to be made out of pocket.
Loan Tenure: As the interest rates are quite low, you can conveniently repay the loan amount over a longer period of time. This implies that you would have to make lesser monthly payments, allowing you to save money for other financial liabilities as well.

How to decide between unsecured and secured auto loans:

Getting an auto loan can be a tricky process and with so many options available, you are quite likely to get confused. It is important that you evaluate your requirements as well as the loan plans to make the right choice. The following factors need to be considered while doing so:

The car you want to buy
Monthly installments you can afford to pay
Other financial liabilities
Amount of loan required
Interest rate quoted by the lender
Loan tenure

As compared to an unsecured loan, you can get quick approval for a secured auto loan, usually within a few days. This is because there is no need for the lender to conduct extensive background and income checks. Also, the terms and conditions for such loans are quite flexible which minimizes the financial burden on the borrower.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans in Killeen. You can choose from both secured and unsecured loan plans with nominal rates of interest. For more information, feel free to call us at (254) 690 – 2274 or visit our credit union at 3305 E. Elms Rd., Killeen, TX 76542.

Applying For A Home Loan? Questions Your Lender May Ask

17. November 2016 Administrator Home Loans (0)

Getting a home loan is expected to be an extensive process as the lender may ask some important questions from the borrower. This may be done to clear any doubts regarding your financial stability. You need to be prepared with all the paperwork and documents at the origination of the loan-approval process. Following is a list of questions a lender may ask before approving your home loan:

Q: How much do you earn?
The lender may ask for the recent pay stubs in order to secure a fairer idea of your monthly income. The debt-to-income ratio has to be conducive for you to secure the desired amount of loan at a reasonable rate of interest. Having a stable job with a steady income reduces a number of hassles for you. In case you own a business or have recently changed your job you may need to produce your tax returns. Asking for your income tax returns can imply two important causes. One, the lender wishes to look at your annual revenue. In case you have provided with a record of past few years, the lender will get a fair idea if your revenue has increased or remained constant over the years. This is good because it increases your credit worthiness.

Q: What is your source of income?
The lender would want to be sure about your job stability. Providing details about your employer can help the lender get a better idea about your income consistency. If you are self-employed, it is necessary to make sure your business is profitable. The lender may ask for at least two years of income records. In case you are planning to pay the loan from your savings or you will be using a grant/gift from your relatives, you may be required to produce the gift letters as proof.

Q: Do you have any current debts?
This question is generally asked to get an idea about your financial liabilities and ensure that you will be able to repay the loan. Sometimes, the lender may ask you to produce documents which state that you have paid all of the previous debts. In case you have an active debt, the lender may want to make sure that your income allows you to take another loan.

Q: What is your marital status?
If you plan to pay your debt through the alimony, the lender will need assurance that you will receive the amount. Women receiving money from their ex-husbands may need to produce the papers that state their legal separation.

Q: What is your credit history?
The lending institution may want to know your credit history in order to make sure you pay your bills on time. This also gives the lender a fair idea of your creditworthiness and the way you manage your expenses. Having a high credit score increases your chances of securing loan at a lower rate of interest.

Q: How much savings do you have?
Many people plan to make the loan payments through their savings. Having sufficient savings in the bank is appealing for the lender because it shows your liquidity and ability to pay the mortgages smoothly. A savings account acts as an asset for a borrower and increases the chances of getting a loan approval.

Q: What is the limit of your down payment?
The down payment is a major factor determining the amount of the monthly installments. This in turn decides the duration of loan payments and the money you save. If you pay a higher down payment, lesser will be your loan tenure and monthly installments. An added benefit is that you may secure the loan at a lower rate.

If you are looking for affordable home or auto loan in Killeen, TX, consider Greater Central Texas Federal Credit Union. We offer a wide range of loan plans at low interest rates and easy repayment options. For more information, you can call us at (254) 690 – 2274.

Benefits Of Using A Credit Union

26. October 2016 Administrator Blog (0)

Over the years, credit unions have emerged as a safety refuge for people who wish to save money as well as earn interest out of their savings. These are not-for-profit institutions that aim at keeping the members first. They offer a wide range of financial services, membership benefits and attractive policies which sets them apart from other financial institutions.

Discuss below are some benefits of using a credit union:

Superior service that keeps members first
Credit unions are financial cooperatives that are owned by the members. Their aim is not to make big profits for stockholders, but to provide financial assistance and customer service to the shareholders. The credit unions take an extra step where they involve the members to vote on the new policies and take account of the suggestions.

Credit unions offer lower interest rates
Owing to their not-for-profit status, credit unions offer high rates on savings account and lower rates on loans as well as credit cards. These rates are competitive and promote savings. Thus, you can enjoy lower rates on your credit cards, house loans and auto loans while you can earn a higher rate of interest on savings and cash deposits.

No minimum balance constraint
Unlike other financial institutions, a credit union does not have to maintain a minimum balance or cash reserve ratio. Thus, it is not mandatory for the account holders to maintain a minimum balance in their financial account. This feature allows customers to withdraw all or keep no money in their account.

Flexible fees
Credit unions are very flexible when it comes to charging fees. They usually aim at charging less and keeping the costs low for the members. They prefer to eliminate a few products and services in order to cut costs, rather than piling up on the fees.

Easier access to cash
Credit unions have come up with the CO-OP ATM network and a shared branch alliance. This includes surcharge-free cash machines and shared branching that gives members the ability to conduct in-person transactions at a larger number of branches across the state. Also, these CO-OP ATMs do not charge any transaction fee.

Friendly and cooperative staff
The staff at credit unions is friendlier and more cooperative as compared to other financial institutions. They are also easily accessible to address your queries and concerns regarding any financial matter. They only invite members who are local and thus are comparatively smaller. This allows them to be well connected with their surroundings and better at giving feedback.

Provides loan regardless of credit history
This is another major benefit of being a member at a credit union. These institutions are willing to provide quick loan approval to people regardless of their credit history. They also offer programs that help you manage your budget and unexpected expenses.

The Add-Ons
A more attractive feature of opting for a credit union is the additional products and services they offer, besides financial services. You may come across some credit unions that have provisions like individual health insurance and financial advisory services. They aim at community service and providing financial education.

All in all, credit unions prove to be community friendly and more welcoming when it comes to providing financial services to the local people. They offer a lower interest rates, and fee -free ATM transactions. Thus they work on a different and more welcoming business model, which makes them customer friendly.