As the world is becoming much more financially challenging place to live in, the standard means of obtaining credit has become so difficult. Due to the increasing rates of interest and inflated charges on loans, it is very easy to believe that there is no other option to obtain a credit card. However, there may be an alternative in the form of the little known credit union movement.
What is a Credit Union?
A credit union is actually a profit sharing, financial co-operative controlled democratically by the members of the union itself. These types of credit unions offer a more financially attractive alternative to the standard products offered by banks including credit cards, home loads, home equity loan, auto loans etc. Due to this, the popularity of credit union is increasing in Florida.
How does a Credit Union Work?
Maximizing profit is not actually the key goal for a Florida credit union. Therefore, such organization has an aim to encourage its members to save financially. A credit union also offers credit cards and other financial assistance to its members at the lowest rates of interest possible. In order to take advantage of this kind of service that a credit union offers, you just need to do is to become a member. Credit union always welcomes everyone from within the common bond regardless of income, employment status or age. No matter whether you have a poor credit rating or not, you can become a member of a credit union.
As credit union uses the sum of all members’ savings, they can able to provide low cost financial services and credit cards to their members. The credit union should ensure that enough money is set aside to ensure financial stability. Apart from that, all other profits are actually used to provide members with lower interest rates loans and at the same time returns at attractive rate of interest for its savers.
One of the most important services that the credit union offers is credit card. Credit cards can often be extremely valuable tool if utilized correctly. Credit card is actually a flexible payment option accepted at different locations worldwide as it is considered a good alternative for cash. There are many occasions when you need more cash than what are extremely available. For example, credit cards are important in emergency situations such as home and car repairs, medical expenses, travel, or in some family crisis.
By obtaining credit cards from the Credit Union, you are allowed to use the bank’s money interest free within a certain grace period. Hence, the payments for purchases on your credit card are due at the end of pre-determined period. You can receive an interest-free loan each month by paying your balance in full.
In order to grab the attention of new customers, Florida credit cards issuers often create low or no interest rate promotional offers for credit card purchases as well as cash advances. However, there is a limitation in this i.e. the credit loan to be fully paid back at the end of set time period.