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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Benefits of Getting a Credit Card through a Credit Union

Credit union is a financial institution as like other banks but it is different from banks because credit union works not for any profit. Credit union helps people in their financial needs and also offers them many services or products at low interest rate. Credit union is not a large corporation. It is owned by groups of members and groups of shareholders.

Credit union offers Credit union financial services as other banks offers such as loans, deposit accounts and also provides credit cards. Credit union credit cards have various benefits as compare to other banks issued cards.

Benefits of Getting a Credit Card through a Credit Union

Fines and Penalties

According to bank rates, credit union credit cards charge less when it comes to any fines and penalty fees. Most of the banks impose a lower penalty interest rate who fails to pay their bills on time. But in credit union credit cards, there are no fines or penalty charges at all.

Balance Transfer Fee

Most of the credit union allows their members to transfer balance without charging fees as compare to other banks rates. Most of the banks charge transfer fees for those using banks credit card. Credit union cards offer the convenience of “buy now, pay later”. In credit union cards, a monthly credit card statement is issued with no interest rate or one can pay their payments out according to their needs.

Access to Cash

If the Credit union is a part of the CO-OP Network then it can provide access to 28,000 ATMs including united state, Canada and other places. There is no fee for using these ATM machines. It also allows to deposit at more than 9,000 CO-OP networks ATMs without charging any fees. Credit union cards make it easy to deposit amount when one is travelling or far away from its branch. Credit union members can easily use ATM machines in another city.

Credit Union Rates

Credit union offers credit cards at lower rates as compare to cards offered by other banks or other financial institution.

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Different Types of Credit Unions

Credit union works for the member’s profit. Credit union is a member owned financial service which helps its members in saving their money. It offers various financial services to its members. There are various benefits of becoming a member of credit union as compare to national and other local banks.

Types of Credit Unions

There are mainly four types of available credit union. It is important to know the difference between them so as to find the best credit union.

State Chartered Credit Union

State chartered credit union is operated in the respective states and it is managed by the private members or volunteers. State chartered credit unions provide many types of account services like members accounts, including share draft accounts, share certificates, share accounts and money market accounts. State employee credit union is an example of State chartered credit unions.

Federal Credit Unions

Federal credit unions are not for profit credit union, also preferred and regulated by the federal government under the Federal Credit Union Act. Federal credit unions are national credit unions with several limits for its membership. It requires a member to be at least 18 years old. Its members manage loans, their investments and credit. Some Federal credit unions can be joined online which only requires the member to be a citizen of U.S with its permanent address.

Corporate Credit Unions

Corporate credit unions provide all types of financial services and financial marketing solutions to their individual consumers. Corporate credit union is also known as Central credit union which provides investment facilities and loans to its members. Corporate credit unions offer a range of payment solutions, international services, electronic payment of bills, reporting services, investment advice and security safekeeping program. Corporate credit unions are administered and chartered by National Credit Union Administration (NCUA).  

Natural-person or Employer Credit Unions

Natural-person credit unions provide financial services to individual people, specific company, professions or industry as like police officers, firemen, teachers, government workers and other similar groups across the country.




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Various Aspects of Credit Union Business Plan

Credit Union Business Plan

Credit Union business plan is an important factor for its success. It is a document that describes about it and what it offers. A good business plan includes documents of credit union telling its aims and objectives.

Creating a Business Plan

While creating a credit union business plan, always start with an original and good idea. Other businesses also create a business plan and start with a real concept or idea. Sometimes our ideas do not make any benefit because all business plans need slight adjustment.

When we create a new credit union business plan idea, the next step is development of that idea. It means to analyze the idea from all possible angles for its success. The final step is to include well written summary of what we want to achieve with the business. A well written plan is helpful in many aspects to achieve various levels and helps in setting short term and long term goals. A business plan allows identifying the market plans; products or services. It also identifies potential customers and your competition.

A credit union business plan includes the following details:

Introduction

The business plan contains information about credit union identification and credit union history. It includes all types of information about credit union and their projects.

Mission and Vision Statements

It includes explanation about credit unions purpose, missions, goals and credit union objectives.

Background

In this phase, the business plan includes credit union locations, offices and what products or services will be provided.

Marketing Strategy

It should be described that how the products or services are marketed and promoted according to the market demands or rates. 

Advantages of Credit Union over a Bank

At a when time banks seeks profits through various fee structures as it a profit institution, there are several people who are searching for financial institutions that will help them in saving money. One such institution that may help you is your local credit union.

Although credit union is similar to the traditional banks as both provides financial services to the customers but credit union is a non-profit institution. Also, credit union is member-focused institution. It is owned and operated by its members.

Various Advantages of Credit Union

Interest Rates

Credit union provides high interest rates to its customers as compare to traditional banks.

Lower Fees

Credit union has lower fees as compare to national banks. It also offers checking accounts with no minimum balance and provides better account opening system.

Better Service

Credit union provides better services as it has small branches. So, they can afford fast and personal service.

Customer Service

Credit union provides high level customer services as credit union is a non-profit organization, so, customers are less likely to face aggressive sales tactics.

Fewer Complications

Credit union avails simple and easy-to-follow terms. Many traditional banks come with loads of rules and provisions.

Lower Loan & Credit Card Rates

Credit union provides same services and products as many traditional banks provides but at a cheaper rate. Credit union provides relatively low mortgages, personal loans and credit cards.

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THE CREDIT UNION (CU)

CREDIT UNION (CU)

CU provides various financial services to its members. CU only works for the member’s profit. CU is a member owned financial service which helps their members in saving their money. CU also provides a service to support community development. CU offers many services as other banks or financial institutions but CU is different from other financial institutions for many reasons.

Various Aspects of CREDIT UNION (CU)

Not-For-Profit status

Not-For-Profit status in CU describes that CU is not for profit service. It means CU provides affordable financial services to its members and various communities. Any savings of CU members or any earning of money by credit union is returned in the form of low rates loan. It does not means that CU is taking any type of donation, fund from members; CU is a service in which how members keeps savings.

Member-Owned-Financial-Service

CU has various members and every member is owner of credit union because all members become owners by opening their saving accounts in credit union. Credit union helps members to save their earnings in a community. Also, in a community, one member’s savings helps other members in a role of CU survive.

Credit-Union-Service-Social-Purpose

The main purpose of credit union is to help people and not to make any type of profit. All types of members in CU are important. The main target of CU is to help members without any fees.

Full-Insured-Money

Credit union is a best and ideally suited choice in financial matters. Credit union commits your money at a safer place.

Corporate Credit Union

Generally, credit union provides services only to a single consumer or community but corporate credit unions are different from other credit unions. It is also known as central credit union. Corporate credit union provides services to other credit unions for the support and delivery of product. Corporate credit union is the largest credit union in all the credit unions. Corporate credit unions hold other credit unions.


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Tips on Credit Union Web Design

Credit Union Web Design

Web design is an another marketing solution for credit union. Credit union web design includes effective web design sites which uses a common strategy of design and get the best result on internet. Credit union web design is also used as a marketing strategy for internet audience. Also, we can say that credit union web design is used to attract people who are using internet and are making a trusted relationship with their members.

Tips on Credit Union Web Design

Credit Union Web Design

Any page of credit union website should be able to go on home page just in a single click. For example, clicking on company’s logo or any management name, one should redirect easily to the home page. The web designing should be done by taking it into mind that what our customers looking for and also what they'll want to know or what they'll want to do. 

At any time, your members should be able to connect to you by your contact information. Members should connect to you to ask questions, advice, comments, and concern and also interact with credit union in a general way. Credit union web design allows your visitors to interact with you through e-mails, online chatting, query or contact form and an application etc.

Perfect Design and Content

Designing of any credit union website is an important factor. Your credit union website design should be that impressive that it will put up a good first impression on the members.  Thus, design a website to attract visitors so that they can explore good information from the credit union website. Graphically, credit union websites design should be clean and simple.

If you want to add any image, it should be related to credit union website or content. Content should be written in a communicative way and easily understandable to the visitors. Another important thing is that your webpages should be fast loaded pages because on internet browser your members will become frustrated and leave your site if it will take a long time to load.

Connect with Members

Credit union website is a good way to connect with your members. If credit union offers any service or product online, customers should be able to hold their order in simple one or two clicks. After the placed customers order, they should be assured that their transaction was secure and the credit union will not sell or share their information. It means in credit union web design,one should create a privacy policy and make it available on all pages of the websites.


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Credit Union Marketing Strategy

Credit Union Marketing

Credit union is a small financial service which helps people in how they can save money. It is also called as a member-owned financial institution that provides financial services as other banks are offering.  All credit union collects money from members in a role of saving and interests are returned to the members. Credit union is people helping to other people in a way of saving of money. In credit union, there are several types of loans  that are established to help the members like personal loans, study loan etc. Credit union uses various types of marketing strategies to help their members.

Credit Union Marketing Strategies

Encouraging People

Encouraging people to open savings account is a good marketing strategy for credit union. It should be explained in an easy and understandable manner that how credit union works for people. It is one of the best way to add a member in their membership by encouraging people.

Target Community

Many people may be known to people in a community. So, make a strategy which is based on community so that the people who are in a common bond may discuss their experiences.

Offer Financial Products or Services

Offer financial products or services on cheaper rates as compare to other banks. The main credit union marketing strategy is that what the other banks are offering to people, credit union offers the best and at a low rate service. For example, loan on low interest rate, without taking any fee to create an account. One should provide more competitive products or saving products.

Online Credit Union Services

Online credit union services should be provided to the members on their needs. Facilities should be offered to members on becoming a member of credit union. For example, mobiles, internet or ATM.  This credit union marketing strategy provides online payment, apply online for loan, online money transfer, deposited money online as according to their need.

Work Honestly

Another strategy of credit union is to work honestly for their members. Credit unions should be honest as well as strong for their loyal working and should provide loyal profits to their members.  They should only provide products or services which are based on member’s profile. It is a good credit union marketing strategy to move forward and also help them to grow membership.

Safe or Stable Service

Credit union’s main marketing strategy is to provide safe or stable services to the members. Use only those strategies which are long term and safe for members for their grown membership in credit union.

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What are Credit Unions

Credit Unions

Credit union is a type of financial saving for many people. It is an advanced and personal money management for group of people who saves together. Credit unions are financial institutions which are a form of non profit cooperation to operate for the benefits of their employees. It works like banks.

Credit union is only established for those people who have something in common. Exact meaning of "common" is like any workplace or company, a profession, any type of membership in a society, any organization in which people are common. Credit union marketing basically provides financial services like your current accounts, saving accounts and loans. In credit union, profits may be returned to their members as interest. Basically, we can say that credit union services are like a bank but it is better than a bank.

How Credit Unions Works  

Credit union provide many services as like bank but it is different because it offers various facilities to an individual such as saving accounts, checking accounts, credit cards, deposit and online financial services, low loans rates. Credit Union provides more personalized services to their members and also offer lower cost banking services. A credit union joined a group of members by a bond in common people and these people deposit their savings and from this saving, members make loans to one other.

When you deposit money into credit union, you become a member and the owner of the membership. Many financial institutions provide better and less expensive services for their people. Credit union offers better saving services and also allow growing their business at a low interest rate. Credit union and banks provides same services, if you think that credit union or banks are same, it may be right but both are different because each offers different types of benefits to people.

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