credit union vs bank

[trickrtreat]

Is a card from a credit union any better than from a bank? Also, it seems like a lot of those don't have a Visa or Mastercard logo on them, which means they can't be used everywhere.

[berlinlife06]

I admit that I am a big time ignorant! I've never heard of credit unions. What are they exactly? Does it work like a bank? can anyone have an account with a credit union?

[trickrtreat]

Here is a definiton I found on www.creditunion.coop:

A credit union is a cooperative financial ins***ution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. Did you know there are at least seven ways you can find a credit union that you are eligible to join?

Credit unions, like other financial ins***utions, are closely regulated. And they operate in a very prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $100,000.

What makes a credit union different from a bank or savings & loan? Like credit unions, these financial ins***utions accept deposits and make loans--but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments.

[berlinlife06]

Thank you for the definition! Now that I understand, I don't think their cards are as good as any other credit card, specially if they don't have the Master Card or Visa... but perhaps they might work like a debit card... I have no idea!

[SageMother]

My credit union offers the Visa debit card and you use it just like a credit card. Money comes out of your account with your not having to pay interest, just like any other debit card. It can be used anywhere a Visa credit card can be used.

[berlinlife06]

I think in a way it is better to keep track of what you spend... A debit card is better so you don't spend more money than you should! If I had it that way, I wouldn't be in so much debt anymore!

[SageMother]

Originally Posted by berlinlife06

I think in a way it is better to keep track of what you spend... A debit card is better so you don't spend more money than you should! If I had it that way, I wouldn't be in so much debt anymore!

I think the debit card should become the way people spend money if they can't stand to carry cash anymore. You aren't paying interest rates and you still have the card if you are concerned about impressions other people might get..

[berlinlife06]

Originally Posted by SageMother

I think the debit card should become the way people spend money if they can't stand to carry cash anymore. You aren't paying interest rates and you still have the card if you are concerned about impressions other people might get..

I discover that here in Berlin, at least, most people use the "EC" card (Electronic Cash, or Debit Card) instead of a credit card. So, people can't be too much in debt, simply because their credit limit is really limited.

[trickrtreat]

I think, in general, more people are now carrying plastic instead of cash. I think it would be a great idea if we didn't carry cash anymore, period. It would certainly cause less robberies of convenience stores.

[berlinlife06]

Originally Posted by trickrtreat

I think, in general, more people are now carrying plastic instead of cash. I think it would be a great idea if we didn't carry cash anymore, period. It would certainly cause less robberies of convenience stores.

Yes, you might be right... except that we will be spending a lot more money, simply because we don't "feel it in our hands" I bet you it is a lot easier to "charge" $100 than to pay it Cash! At least it is for me!