What is a Credit Union?

A credit union is a financial institution that works differently from a bank.

Individuals join as members of a credit union because of a region they live in or company they work for. Credit unions typically offer the same services as banks, including deposits, loans and mortgages at lower rates.

The reason credit unions can offer lower rates than banks is because they are not for profit organizations. This means that credit unions do not have to pay taxes and can offer fewer fees and lower rates to members.

Being a member of a credit union also has the advantage of owning a portion of the company, and receiving a portion of the profits. Members are also able to vote on important matters in the credit union, including the Board of Directors.

Obama Tightens Restrictions on Bank Bailouts

Obama is offering a fresh approach to the all-familiar bank bailouts. He aims to tighten the oversight of banks and make sure any aid given is not used frivolously. 

Obama noted that many banks, after recieving billions of dollars from the government, immediately renovated offices instead of putting the money toward providing consumers and companies with credit. 

Congress has cleared the Obama administration to tap into the second wave of $350 billion dollars in an effort to stabilize the financial industry. It is clear that the first $350 billion was ineffective and spent unnecessarily. Hopefully, with adequate oversight and restrictions, this second wave will be enough to stimulate the industry and get banks lending again.

Free yourself from your banking fears, borrow from Tropical Financial Credit Union. We offer lower rates than major banking institutions and we are still lending!