Credit Unions and Bankruptcy

Credit Unions and Bankruptcy

Credit unions always ignores doing business with the people that involves in any kind of bankruptcy, but they're also cautious to avoid violations of bankruptcy law.

Automatic Stay

According to attorney Daniel Mc Garry, when a debtor files for bankruptcy, he has protection from actions by the creditor. Most of the credit unions write into to their member agreements that the bank has the right to make an unsecured debt, when they deals with a bankrupt credit-union member then they tries to avoid violating the "automatic stay" statute of U.S. bankruptcy code.

Significance

Generally credit unions support legislation because it costs taxpayers and credit unions money and they makes it tougher for people to declare bankruptcy.

Effects

According to McGarry, Credit union may deny extending further credit to a member who discharges debt during a bankruptcy but this doesn't mean a person who declares bankruptcy can't use the services of his/her credit union.

Tip

According to Bankruptcy Law Network, those considering filing for bankruptcy should take their money out of their credit union and putting it in another institution to prevent the credit union putting a freeze on their account to offset possible future losses. 

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Credit Unions for Kids

Credit unions are not-for-profit financial cooperatives that provide savings, credit and other financial services to their members. It is owned and managed by its members. The main objective of Credit union is to provide a secure and convenient place where members can save their money and where loans are available at reasonable prices. 

The major difference between a credit union and a bank is that a bank is for-profit organization whereas a credit union is a not-for-profit organization. Therefore it provides better rates of loans for the benefit of people. Everyone can benefit from a credit union. Kids are also not an exception for being a beneficiary of the credit union services. There various benefits of credit union such as:

• Non-profit Status

In credit union no stockholders are looking at the return on their investment

• Inclusiveness

Credit unions have gained so much good reputation allowing spouses, siblings, and children of members to join.

• Owned by Members

The members of credit union are the owners. This means they are not working for profit but for public good.

• Personal attention

As credit unions are smaller than banks therefore personal attention is provided to every member.

Saving money is an excellent habit and everyone should try to save money. Nowadays, parents want their kids to save money so that kids have the habit of saving money. Credit unions are the best option for kids to save their money by opening an account and keeping it in a safe place. There are many reasons for why kids should choose credit unions and these are mentioned below:

• No Account Keeping Fees

Most banks have fees for account keeping but credit unions have no account keeping fees which is a great advantage especially for kids.

• No Transaction Fees

Credit unions don’t charge for any transactions.

• No Minimum Opening Balance

As banks require some minimum opening balance so it’s difficult for kids to open an account in banks therein credit unions serve the purpose well.

• Ability to Perform Direct Debits and Credits

It is also an advantage for kids that they can easily debit from or credit to their account as and when required.


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About The Teachers Federal Credit Union

Teachers Federal Credit Union

Teachers’ federal credit union as the name signifies is the credit union specifically for teachers or precisely for people who are in teaching profession. It provides banking and financing services for the teachers. Teachers’ federal credit unions run under the authority of the Credit Union National Association. There is no central teachers’ federal credit union. The teachers’ federal credit union has many features which encourage their preference over banks.

Teachers’ Federal Credit union vs. Banks

There is similarity in functioning of the Teachers’ federal credit union (TFCU) and banks but TFCU have many discrete features which makes it different from a bank. In TFCU, a lower fee is associated with the opening of checking and savings accounts. One of the major differences between credit unions and banks is that since credit unions are non-profit organizations owned by members it provides better rates and low operating costs.

Benefits of Teachers' Federal Credit Union

Teachers’ federal credit union offers many benefits. One who joins credit union can have access to loans and financing options which are created keeping teachers in mind. TFCU provides accounts that are much cheaper to maintain in comparison to regular banks. Teachers find it more beneficial in all aspects as compared to banks.

Things to be considered

The most important thing that one needs to know before joining the teachers’ federal credit union is that what kind of the identification is required to open an account. Work ID as proof of employment is accepted at most places. It is also required to decide whether you need an ATM access or not.

More Secured

Mostly people have a misconception that federal credit unions are less secure than traditional banks. This is not the true as federal credit unions are nonprofit, so there are rare chances for their branches to be closed. Therefore, these are more secured as compared to banks.

Teachers’ Federal Credit Union also has other features like:-

New Online Banking Login Instructions

Easy Electronic Payments with ACH

Payday Loan Alternative Now Available

Additional TFCU Branches Now Accepting Mortgage Applications

5 Things You Need to Know About Credit Scores

Credit score plays an important role in a consumer’s life. Your credit score is a major factor when you plan to borrow money i.e., car loan or mortgage.Credit score  determines your ability to get the loan and the interest rate you are eligible for. You can enjoy the best rates available with the help of credit score. It could also have an impact on your insurance rates and your ability to get certain jobs.

5 Things You Need To Know About Credit Score :-

1. Credit Score is a Number

This number is reported by various credit bureaus. Different algorithms are used to determine the score. Score ranges from 300 to 850 and if above 700 then considered good.

2. One  Can Get The Credit Score For Free

Free credit scores are provided by many websites. One has to be careful, else one could end up paying a lot more than bargained for. 

3.  Good Number, Bad Loan?

Despite of your good credit score you can get a bad loan offer.This is due to the recent credit crisis.

4. Credit Score Can Be Improved

It can be improved following the given steps:-

• Review your credit report
• Set a budget and make payments on time
• Use credit cards sparingly 
• Pay off the balance in full every month

5. Credit Score Can Be Lowered

It can be lowered by many things major ones are declaring bankruptcy, letting your debt go into collection, and having a tax lien against you.

Advantages of Using a Credit Union

Advantages of Using a Credit Union

Most people belong to a labor union or are affiliated with a large employer, organization or residential community. If you are interested in joining a credit union but aren't sure, you just want to know more about credit union advantages. As we know, credit union is a non-profit cooperative financial institution and they also offer credit union financial services to its members as other banks do.

Here are few reasons why you might want to join:

Membership is Easy

Credit unions are owned financial institution and operated by their members. The credit union members are also the owners and there are no outside partners. It means that the credit union institutions are not open to everyone. Credit union offers its service for those people who are affiliated with the group it serves. The membership benefits communicate the value of membership to the members. Be a part of a credit union, it also allows all union members and their families to join.

They Offer Plenty of Financial Services

Credit unions offer savings accounts, checking accounts and ATM cards, like other banks offer. Credit union provides all the services provided by any other bank and one of the biggest reasons to join them is the low interest over loans.

Loans at a Credit Union

Since the credit union is a non-profit institution, also owned and operated by its members, it provides all type of financial benefits to its members. Such as: lower loan rates, higher saving rates, lower fees as compared to other institutions. Credit union also provides car loan or mortgage at attractive interest rates.

Credit Unions are Safe

In a credit union, control your financial problem, also help other members achieve all members’ financial dreams. All the money deposited by its members, for saving money, is insured in the credit union. If you are affiliated with a group, it provides complete and supporting financial services to secure your money. Strict privacy, loan protection and life insurance at no direct cost to the eligible member, is also provided by a Credit union.

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How to Avoid Getting Your Credit Card Canceled

A credit card company has many reasons to cancel a card, in-fact Nonpayment is not the only reason for the cancelation of your credit card there are other reasons such as including non-use, excess debt,  low credit score. Some people like to have their credit card available for emergencies. If you are in an emergency such as need gas or a hotel room on short notice or while traveling abroad then a cancelled credit card may cause considerable problems. So be careful, as that card might not be available to you, just when you need it the most.

First in this article we will explore the various reasons of cancellation of a credit card and also explain some tips to help avoid having your own credit card canceled.

Here are some specific reasons why the credit card company could cancel your credit card:

• Non-Use: If your card will be canceled then “Non-Use” is the most prevalent of reasons for that.

• Your Credit Score Dropped: If your credit score drops then the company cancels your credit card.

• Your Debt Increased: Canceling your card and eliminating the chance if your amount increased such that your credit utilization ratio is teetering.

• Your Credit Increased: Main reason of a company to cancel your credit card is crossing the limit of credit available to you.

How to Prevent Cancelation:

1.  Avoid cancelation due to inactivity by Use it or lose it. It means that you can use the card every couple of months. If you are purchase something then you can pay it off immediately too. 
2. Pay Attention to Ratios, if you want to keep you credit score then maintaining a credit utilization ratio below 25%. 
3.  If you have multiple credit cards then focus on Longevity. Pay special attention to the ones you have had for a long time.

What to do if you’re Credit Card is canceled:

Check Your Credit Report: If your credit card canceled then report your company and also copy of your credit report submit from one of the big three credit bureaus. After this you can also use a free service like Credit Karma.

Maintain your credit score: If your credit score goes down company may cancel your existing account. So make at least your minimum monthly payment on time and to contact your creditor if you have financial difficulties.

Use your credit card: Use your credit card at least once every 60 days. If you purchase something then you should pay it off immediately. So it regularly informs the company that your card is still being used.

Pay your bills on time: More people neglect to pay their monthly statement and make chance to get their credit cards canceled. So pay your bill on time.

Call Them: If you don’t know what your card is cancelled make a call to the company and ask them the reason.

3 Alternative Sources of Funding

Alternative Sources of Funding

 

According to Small business monitor survey 37 percent of small business owners expect to grow their companies in America. In-fact, 35% people are planning to hire staff and 44% to make capital investments. Especially these days’ small-business owners would be wise to familiarize themselves with credit alternatives. For secure financing to buy a business, fortunately there are using other ways than banks. If you can’t afford to finance your company’s growth the question is  what should you do or where to start ?

Here are following financing options to consider:

Community Development Credit Unions
Crowd sourced Funding Sites
Peer-to-Peer Lenders

Community Development Credit Unions 

Socially minded investors and lenders push money to community development financial institution, such as credit unions which serve low income communities. These can be very beneficial for the businesses that lack the access to traditional methods of financing. If you are looking for a loan you should check the website of  “National Federation of Community Development Credit Unions “ to fnd a small business friendly credit union in your locality.

Crowd sourced Funding Sites

Each crowd sourced funding site has its own milieu. Websites like “Kick starter” let you post information about your business idea and seek startup funding from small donors, are proliferating. If you have built strong connections with contacts on social networking sites, it is really good for you and it easy to broadcast information about your financing campaign on websites like Face book. Most of businesses types are focused on artists, musicians, and social ventures but Kick starter, App back, Profounder, and 33Needs may have the money you're looking for.

Peer-to-Peer Lenders Networks

If you are unable to access a small business loan from a bank then you may be able to borrow money from individual investors if you are looking to get better returns than they might help you in this. You can also make money through peer-to-peer lending networks sites such as Lending Club and Prosper. Lending Club will connect only credit-worthy borrowers with lenders. If you have good credit score and also been diligent about paying bills on time then they affects your interest rate. You may easily find the deals on these sites.

Auto Financing - Dealer Vs a Credit Union

Auto Financing

How to finance a new car? There are many things required when you are buying a car as like making several decisions besides choosing the car and also which model of vehicle you want. Financing word refers to how you pay for a vehicle.

Dealer Vs a Credit Union

Members make loan from financial institutions as like banks, credit unions, dealer financing and they all serve two primary methods for obtaining a loan. Mainly credit unions give more advantages to their members as compare to dealership. When members comes to loans, a credit union always offer best rates even they comes for auto financing or car loans.

Credit Union Auto Financing

Credit union provides an opportunity to create a relationship with the lender when you are applying for loan or already belong to credit union. After doing this you can easily persuade the credit union that you are responsible with your finances and also provide your credit report and credit union solutions such as your checking or saving statement. These types of personal statements help you to explain in detail that you're not a risk and will pay back the loan.        

Credit Union Easy To Join 

It is very easy to join a credit union and after that you have access to all of the services which are offer by the credit union. These services include offer checking and savings account, to all types of loan products including car loans, mortgages, credit cards and financial marketing solutions.

How to Find a Credit Union

Credit Union 

Credit union is one of the best choices for those people who prefer a smaller bank over the large banks. If you compare convenience with better rates, services and options, you can easily realize a credit union is the best way to go. Credit union is nonprofit institutions and is famous for their personalized service. It is easy to find a credit union. Credit unions works like small banks that serve financial services, such as employees of a company, people who live in a certain town or members of specific professions.

Here are some ideas on how to locate a credit union:

Your Workplace 

Your workplace is one of the best places to find a credit union. So, look around your workplace. There may already be a credit union catering. You can easily ask your employer about credit unions that the company is affiliated with.

Your Church or House 

If your church or house has a credit union or if you attend any religious services then you can easily ask the administrative staff.

Through the Phone Book 

One can find a local credit union through phone book. It means one can easily call and ask about the requirements and get recommendations about the ones that might be right for you.

Contact a Credit Union Membership 

Contact your local credit union member that you belong to. You can also get a credit union membership through a family member and then find out a credit union.

Talk to Other Members 

You can find a credit union through your friends, family members and co-workers. You can ask all of them about any credit union, they have heard about any credit union or also have used themselves.

Look Online 

For credit union in your local area, you can easily check through online. 

Credit Union CD Rates

Credit Union CD Rates

Certificate of deposit (CD) is a special type of deposit account and credit union can issue them in the same way as other financial institutions do.

In the market, most of the investors are looking for the best value for their investment and a CD (Certificate of Deposit) is one of the best ways to invest hard earned money. Different types of financial institutions offer different CD rates and the rates also changed depending upon the length of the CD (Certificate of Deposit). There are two ways to invest money in a certificate of deposit - banks or credit union. Banks are more stable financial institutions but due to a number of reasons, credit unions are found to be better too.

Following Are The Reasons Why Credit Unions Are Better

• Credit union offers higher interest rates on the certificates of Deposit’s as compared to the CD's provided by banks. It is one of the biggest reasons why people prefer investing in CD's through a credit union. Credit unions are cooperative financial institutions which means earnings are returned to members in the form of higher savings rates.

• Credit union is also a nonprofit institution and they don’t have any worry about returning profit to their shareholders as like other banks that have to return profits to their shareholders. 

• Credit union offers easily affordable CD products to their members because the minimum amount that they require are sometimes lower than what the banks require. Credit unions also offer CD products that have very short maturity periods and it is also one of the reasons why some people prefer credit union.

• Now, people have an idea that various credit union marketing strategies offers better options with CD products. Credit union also provides the stability that banks offer. It also provides higher interest rates.

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Credit Union Auto Loans

Credit Union Auto Loans

Auto loans offered by credit union financial services are a great idea for buyers to purchase new vehicle with low interest rates. Generally, Credit union auto loans provide lower interest rates as compare to other banks or financial companies. In credit union, buyers will not qualify for auto loans in the first time. Here, we are explaining some factors of credit union that are considered in their auto loan approval process:

Your Credit Rating

A first time buyer will face four types of credit situations and these are:

Toughest – No credit with collections.

Tough – Absolutely zero credit.

Easier – Limited credit with short history.

Easy – Long history, but no prior auto loans.

Current Members in Credit union

Are you a member of credit union? It is not important to be a member prior to applying for credit union auto loans.            

Your Employment Stability

Credit unions want to see minimum of 12 months and preferred 18 months on the job. Sometimes credit unions consider for how long you are working in the same line, if you are doing multiple jobs over that time period.

The Vehicles Age and Miles

Many credit union auto loan approvals will get affected by the vehicles age and miles. Many will not finance vehicles with over 100,000 miles.

The Total Amount Financed

Prior credit history will help in determining how much a credit union will loan you and this total amount financed range is usually reserved for customers just starting out with a limited credit history.




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Benefits of the Navy Federal Credit Union

Navy Federal Credit Union

Navy Federal credit union offers various financial services and products including checking amounts,account opening system, loans, share savings and credit cards to military service members and their families. The individual will have access to quality or financial services with great rates if an individuals become a member of Navy Federal Credit Union.

Benefits of Navy Federal Credit Union

Money Management Option

Navy Federal Credit Union focus on member’s money management programs and money management programs supports the needs of its members. In the Navy Federal Credit Union, money management option offers free checking accounts with a free debit card. Money management options of Navy Federal Credit Union include:

• Free Visa Check Card with worldwide ATM access
• Free and unlimited access to Navy Federal ATMs,
• 24/7 online account access
• Unlimited and free transactions through over 20,000
• CO-OP Network ATMs and a variety of options

Free Debit Card Products

The Navy Federal Credit Union provides free debit card service as like the Navy Federal's CUCARD and Visa Check Card. Members can use CUCARD & Visa Check Card at any CO-OP Network without any fees. Both debit cards allow navy members to make loan transfer and payments by Federal ATMs. With the CUCARD, members can receive cash-back rewards at various merchants. The Visa Check Card allows its members to carry large amount of money safely and offers amazing password protection.

Free Online Account Management

The Navy Federal Credit Union also offers free online account service. One can also view its entire online contacts and also provide 24 hours world wide access. All the members can make loan payments, order checks, apply various loans, request for stop payments, send e-message, transfer money.

Low Interest Rates and Impressive Rates on Financial Aid

The Navy Federal Credit Union offers low rates on visa and master cards or credit cards to its members with high credit limits. It also provides transfer fees service from one Federal credit union to another credit union. It offers impressive rates on financial aid on mortgages, car loans, equity education and other types of loans. 


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Do Credit Unions Have Membership Fees??

Credit Union Membership

To access the Credit union efficiences and its services, one should become a member of credit union. Anyone can be a part of membership like an employer, school or university, community and employee group. These community based credit unions are available in many cities and towns across the countries. Members of credit unions require few qualifications whereas some credit unions or other institutions charge a membership fee.

Qualifications

Basically, a credit union requires that maximum potential customers will qualify for the membership. A credit union working under a corporation will accept that members and member’s family that operates under a corporation. Sometimes credit union allows family members of current members to join a credit union without their own qualification.

Membership Dues

Some of the credit union requires membership fees to be paid by their customers. For example the Aventa Credit Union requires $6 membership fee from all adults’ members to pay and according to credit union, website Minors pay a $1 membership fee. In the credit union membership fees change by institution. Most of credit union don’t charge directly infect credit union charge their membership fees after joining the organizations.

Banking Fees

Several credit union charge additional fees from their customers. Many credit union charge fees on checking or savings account if customer does not maintain minimum balance in their accounts. Credit union institution may charge fees on checking, withdrawn balance through ATM or using ATM from another bank. Credit union also charge fees if a customer overdrafts his/her account.

Considerations

As compare to other banks and financial institutions, credit union has strict membership terms and offers better interest rates as compare to traditional banks. Banks offer products and services; credit union also offers same products or services as like checking and savings accounts, auto loans and credit cards.

Credit Union Mortgage vs. Bank Mortgage

Credit Union Mortgage vs. Bank Mortgage

Banks and credit unions offers same type of services but in a different way. Both offer mortgage loans which are helpful for customers to purchase homes. Credit union efficiences offer comfortable financial services and Credit union marketing ideas to provide members an advantage in their financial problems as compare to banks. There are many benefits becoming a member of any credit union as compare to national and other local banks.

Features

As we know, credit union based on membership means membership which is based on where you live, your work place. But banks are open for everyone but with strict rules for lending requirements.

Functions

Credit union usually works as a non-profit institution and also operated by its own members. Credit union provides adjustable loans rates to its members. It offers multiple loans in process on a single property. Credit union offers lower interest rates or cheap loan rates to its members on mortgages and fees as compare to banks.

Types

Credit union offers fewer types of mortgage loans to its members as other banks offers. Banks and other institutions provide more types of mortgages than credit unions. These types of mortgage include fixed and adjustable rate mortgages. In banks, variable payment options are included for various mortgage loans.

Considerations

Credit unions have fewer employees to deal with customers as compare to banks. Most of the credit unions do not provide 24 hour customer service to their members.

Various Credit Union Banking Laws

Credit Union Banking Laws

Credit unions are member owned and members controlled co-operative financial institutions. Most of the credit union provides a place to save and borrow money at suitable rates. It also offers other Credit union financial services to its members.

History

Credit unions began in Europe and established there to encourage savings by their members. In 1903, credit unions were established in Unites States. In 1934, Federal Credit Union Act was signed into law authorizing in all states. The main purpose of Federal Credit Union is to make credit available and promote through national system of non-profit. Credit union starts in 1990s and up to 21^st century, more than 85 million people were its members that has deposited their savings in credit union.

Membership

According to credit union law, credit union can be established into community. The community may be based on employment, where you work, work place etc. Credit union provides credit union solutions and financial services to the people who have a common relation or connections. For example, credit union can be established by a company for its employees or anyone who is related to the company. A member becomes an owner of the credit union by deposited small saving.

Management

Management of credit union and other banks are different. It is different from other banks because credit union members are in control of how it is managed by electing a volunteer board of directors. After this process, the board selects their officers and other supervisors for credit union management.

Deposit Guarantees

Both banks and credit unions keep members money safe. Almost all the deposited money is guaranteed by the National Credit Union Share Insurance Fund (NCUSIF). Safe deposited money of the members makes it sure that the credit union has NCUSIF.

Morale

According to credit union laws, when a credit union institution were establish by a community or company opposite to other banks, credit union creates an important benefit for its employees or members. Credit unions understand the needs of its members as compare to other banks.




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Various Benefits Of Credit Cards

Credit card is a type of small plastic card offers to users from credit union or other banks after opening an account by the credit provider. Most of the bank marketing strategies and credit union offers credit cards with several benefits to attract new customers to open a new account. Credit cards are different from other cards like debit cards or checks. It also allows short term loans for their users.

Benefits of Credit Cards

Free of Cost Credit Cards

Credit cards are very popular and main reason behind it is that there is no charge. Credit cards provide credit to buy something and one can pay for it later dates.

Safe and Easy Way to Pay

Credit cards provide easy and safe ways to pay for things. On can easily buy something over phone or order by email or an internet by paying through credit cards.

Convenient Payment

Credit cards allow users to pay at a time without having cash. It means if you have purchased something and you don’t have cash then credit cards can be helpful to pay. In today’s time, credit cards are very important for online shopping.

Global Acceptance

Credit cards can be used in any country. It is accepted in almost all the countries. Users can easily use credit cards without taking any tension and also without exchanging for different currencies.

Credit Cards Rewards

Most of the companies offer rewards to attract their customers for using credit cards which they never get on by using cash, checks, or debit cards. Credit card rewards offerered by companies are cash back, airline rewards, travel discounts, special insurances and other merchandise programs.

Monthly Budget

Credit cards can help to handle your monthly bills. It should always be remember that it will work only if you are paying your balance every month. Users can have their credit card statements that include the transactions and also what you have spent.


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