Posted by LorMet Webteam on Mon, Oct 19, 2009 @ 09:00 AM
Presently, there are thousands of credit unions in the United States, with approximately 100 million credit union members. Yet, many people don't really know much about credit unions.
Generally, a credit union is a not-for-profit financial institution organized to promote savings and provide credit for those who belong. Unlike banks, which are profit-orientated financial institutions owned by stockholders, credit unions are financial cooperatives owned by their members and run by a volunteer (unpaid) board of directors. Since credit unions exist to serve the interests of their members without the motivation of profit, logically, they frequently offer more competitive rates and lower fees than those offered by banks. With such advantages, it's hardly surprising that more and more people are turning to credit unions to finance their vehicles and manage their day to day financial transactions.
Membership to credit unions can be exclusive or open to public. For instance, the largest credit union in the world, Navy Federal Credit Union, is an exclusive credit union whose membership is restricted to people who are associated with the Department of Defense in some capacity. On the other hand, the LorMet Community Federal Credit Union in Lorain County, Ohio is open to public. As long as you live, work, worship, or even attend school in Lorain County, you are eligible to join and reap the benefits of one of the most progressive credit unions in the region.
Around the world, credit unions are known by different names. In Afghanistan, they are known as "Islamic Investment and Finance Cooperatives" and in some African countries, "Savings and Credit Cooperative Organizations." However, the most meaningful name has to be the French term caisses populaire which means "people's bank," and that's what a credit union really is!