“What even is a Credit Union?”
“How does a credit Union Work? I think my Gran was in one”.
These are questions/comments I get all the time, sometimes even from people who are already members, and my answer is always,
“The Credit Union is your ticket to easy savings and affordable loans delivered by people who actually care about YOU and the community we live in.”
It’s a simple solution to meet the demands of a community by the community.
Here, let me explain…
- A group of people who share a commonality (common bond) pool their savings together and keep it safe in a credit union. (p.s. money is safe under the FSCS)
- When one of those people needs a loan, they can ask to borrow some money from the savings pot.
- They repay the money in weekly, fortnightly, to monthly payments with some interest to cover some costs and continue to pay little into their savings.
- The pot gets bigger, and more people can borrow from it when needed, so it goes on.
- And your Granny was clever. That’s why she had a credit union account.
The Credit Union model is a true example of a cooperative, people working together for their community’s greater good.
There are NO fat cat salaries, investment banker input, hard sells, or sky-high profit margins to meet for external shareholders.
They are just people keeping their money in their local economy to help each other. SIMPLE!
A volunteer Board of Directors sets the credit union’s strategy, and at RWCU it’s run daily by staff and volunteers.
Volunteers, I hear you cry, “why would anyone do that” well, if you check out my earlier blog about how volunteering got me to CEO, you’ll find out why.
The money earned from loans is used to pay for the overheads, like phone line
s, IT equipment, staff salaries, etc.. any money left over is paid back into the credit union pot to help more people.
It is that simple! But if you are unsure, here is a cracking video to help.
So why would you borrow from a credit union? The question should be, why would you not?
Credit Unions keep the money local, supporting the local economy. Interest rates are fair and affordable, with no hidden charges or early settlement fees, making it ethical and equitable and helping the credit union to help others mutually.
Credit Unions are often considered the “poor people” or “poor person banks” because we dare to help the financially excluded, but shouldn’t we all be helping each other without judgement?!
Yet, credit unions are for everyone, and let’s face it, none of us is feeling particularly “rich” these days.
So ask yourself, why am I NOT part of a Credit Union?
When life throws a challenge or comes that rainy day, find the help YOU need when you join Right Way.
Join Right Way Credit Union today and be part of something amazing!