Credit Union Questions
What is a credit union?A credit union is financial cooperative that is owned by the members of the cooperative. The credit union is ran by in democratic manner by the members of the union, with the purpose of operation being credit provided at rates that are competitive and also providing members with other financial services. On top of providing services to its members, it also may provide services that support the development of the community and therefore can be considered a community development financial institution. There is no standard size of credit union, and the amount of the assets held by the credit union will vary from credit union to credit union. Read below where the Experts have answered many questions pertaining to credit unions.
Are credit unions more lenient on credit requirements?Credit unions tend to more liberal about whom they allow credit to than other financial institutions. So if an individual has credit that is less than perfect, and they want to get a credit card to help rebuild their credit, a credit union is a place that they should look in to.
Are credit unions able to close an individual’s account due to their views?Credit unions have been known to close accounts of individuals that they no longer want as customers, and can act in a hasty manner to get what they want accomplished. If a credit union has closed the account of an individual due to the individual’s views such as being racist, on the basis that the individual is discriminatory, then the individual may be able to fight it and get their account reinstated.
When a credit union is looking at lending money to an individual what debt ratios are the credit unions are looking for?Credit unions look at the debt ratio of an individual when they are considering lending money to the individual. Like most financial institutions, credit unions want to loan money to individuals who have a lower debt ratio. A debt ratio that is lower than thirty six percent is the most desirable, because it is the best debt ratio for most individuals. A debt ratio that falls between thirty-seven percent and forty-two percent, are less desirable but credit unions still may lend to the individual. The ratio from forty-three percent and up is too high and comes with financial difficulties; credit unions are more often than not, unwilling to lend money.
Credit unions are financial cooperatives that are owned by members of the cooperative. Credit unions tend to more liberal in regards to lending and interest rates. Just like other financial institutions credit unions look at potential borrower’s debt ratio along with credit scores to determine if the individual is eligible to borrow money. Any questions regarding credit unions may be directed to the Experts.