Reasons why joining and using a credit union is better than a bank
Here in Angus we have a range of financial providers to choose from. Angus Credit Union and the multinational banks both offer saving and loan facilities – so how are you going to choose which one to use?
Here are a few things to consider about our credit union:
- Angus Credit Union is much more concerned with helping people to develop a balance between saving and borrowing, than just wanting to make money out of people – banks are more interested in just encouraging people to borrow.
- Angus Credit Union is willing to arrange small loans for our members – banks only want you to take out a loan if it is for a larger amount, otherwise they want you to use a credit card or an overdraft. Neither of these helps you to establish a pattern of regular repayment, which is the most effective way of paying off a loan; banks would prefer you to be continually in debt.
- With Angus Credit Union, loan repayments are structured so that as you pay each instalment, a small proportion of the repayment goes into your savings. At the end of the loan repayment period, you have paid off the loan and also have more money in your savings. Banks don’t do this.
- Angus Credit Union loans come with inbuilt loan protection insurance, so that if you die while the loan is still being paid back, no-one else is left with the burden of paying back the loan. Any sort of loan protection insurance from a bank costs extra money; with a Angus Credit Union this is provided at no extra charge to you.
- Angus Credit Union is a responsible lender; we won’t offer you a loan that you will struggle to repay. The global financial crisis showed us that banks were willing to lend more to people than they were able to repay. Has anything changed?
- Using Angus Credit Union is keeping local money circulating in the Angus local economy; using a bank means that the profits are going outside the local economy to the shareholders of the bank, which are usually other big corporations. Angus Credit Union is owned and operated by its members for their own benefit - there are no external shareholders, and any surplus that the credit union creates is returned to the members.