Why Use A Bank When You Can Use A Union!!

Posted on September 15th, 2009 in All Articles.

I have personally decided to bond with a credit union myself and am in the process of moving things there. If you haven’t looked into it–check them out.
The convience of a cash-station-on-every-corner is also available with them….

And better rates are there… and relationships with decision makers are easier to come by from my point of view.
The next decade is about frugality, focus and intention and that comes through being related to your money and fees in a whole new way.
Checking out a credit union that is out to empower you and not profit might give you more options.

Whether you find one affiliated with your workplace, or some association you belong to… go for it. Why not give an efficient non-for-profit your money?
Banks make money on charging you fees… It’s about profit. So think about what is in your best interest on this one. Spread it around.

I pulled this article from the DS NEWS update today.
-Phil Buoscio
While the credit crisis continues to dominate the economic news, the country’s 7,848 credit unions reported record-breaking performance in new loans granted in the first half of 2009.

According to data released by Callahan & Associates, a Washington, D.C.-based firm specializing in strategic planning and investment management for credit unions, during the first two quarters of the year, the credit union sector extended $144.2 billion in loans to its members. This volume was 7.5 percent, or more than $10 billion, greater than in the first six months of 2008.

Credit unions’ market share increased in every lending category. Callahan & Associates reports that in real estate first mortgages, for example, share has more than doubled in the last 24 months to 5.2 percent at mid-year 2009.

“Credit granting is the core of credit unions’ role,” said Jay Johnson, EVP at Callahan & Associates. “In this stressed economy, what might seem routine is in fact extraordinary performance.”

Based on the company’s market research, the total number of loans closed by credit unions in the first half of the year was 9,585,368. Johnson says this type of loan volume is the primary source of credit union earnings and demonstrates the resilience of cooperatives.

Credit unions also maintained their status as the best-capitalized financial institutions with a net worth ratio of 10 percent. Their overall delinquency was 1.59 percent on loans 60 days or more past due, compared with a rate of 4.35 percent for FDIC-insured institutions on loans more than 90 days past due.

Members have brought $58.1 billion in new share deposits to credit unions, a growth rate of 8.4 percent over the past 12 months – the largest increase this decade.

According to Callahan & Associates, credit unions have been “punching above their weight class” for the last two years. While other lenders have cut back, credit unions have stepped in, filling voids in auto lending, credit cards, first mortgages, home equity lines, and student lending.

“The credit union cooperative financial system works,” said Johnson, “It has been a source of ‘economic stimulus’ for members throughout this crisis.”