Credit Union Banking prides itself on being member owned. Member owned banking means that all of the money in the bank is shared among the members. Credit unions often use the word share instead of savings to account for money that each member puts into the credit union. The resources of the credit union is derived from its members and investments just as any other bank.

Even though you are a credit union member, when you request a loan a credit check has to be performed just as if you were requesting a loan from a bank. The credit union, however, offers a more intimate and personal banking system because of its membership infrastructure. There are bank officers in the credit union and there are bank tellers at the credit union. More often than not, however, the credit union is connected to a large conglomerate of employers. The credit union usually carries with it the name of the major company that has the most members.

The credit union is interactive with its company patronage and will often hold board meetings where the majority of the members belong. The credit union produces a newsletter and actually let the members know the net worth of the credit union unlike a bank that operates like a business with ads instead of this type of communication.

It is advantageous to join the credit union because of the many discounts offered because of belonging. The extra benefits are similar to the AAA Automobile membership, providing discounts to hotels and restaurants. From time to time, the credit union will work with a local car dealership and offer deals and saving on new and used cars. Banks are in the business to provide loans for cars as the credit union but does not work with dealership to offer the member discounts. The banks will take your car back if the note is not paid on time and that is the jest of the bank’s relationship with car dealerships.

Credit Unions are great for people who want a sense of belonging to a group and knowing that their money is being used to help another member get a loan or to purchase a car. Car dealerships are more receptive to credit union members because of the business relationship between the two entities. Banks have been having problems because of the reception with the government stepping in with government bailouts. These financial institutions were more effected by the recession because of the huge amount of money that is now insured by FDIC which is now up to $250,000. Credit Unions, member owned are not of the caliber of business to have been in a position to be as effected by the recession. Credit unions are the better choice when banking if you are looking for a community place to save and to share your paycheck and earnings or is looking for a great deal on a car.