Personal Finance presentation, loan types and institutions credit unions prepare to get financially fit by practicing personal finance. First, we’re going to take a step back and think about the credit sources where we might go in order to get credit in order to get personal financing or a personal loan, then we’ll zero in on our topic this time, that being the credit unions, and the type of financing that could be available within them.
00:26
So when we’re thinking about getting a loan, the first thing we think about possibly, or most likely, is the commercial banks, which we’ve talked about in a prior presentation. We also have the consumer finance companies we talked about in a prior presentation, credit unions, which is the subject of our focus this time, life insurance companies and the Federal Savings, banks, the savings and loan associations, which we will talk about those two in future presentations. Now we we’ve looked at the credit unions just in general, in prior presentations as a financial institution.
00:58
Now we’re going to focus in on the types of loans that might or most likely be available there. But just a recap on the credit unions themselves. They are financial cooperatives that provide traditional banking services to their members, they have fewer options than the traditional banks. However, they may offer clients access to better rates and more ATM locations because they are not publicly traded and only need to make enough money to continue daily operations.
01:28
Credit Unions usually have fewer brick and mortar locations than most banks, which can be a drawback for clients who like in person services and credit unions are exempt from paying corporate income tax on their earnings. So if you’re a member of the credit union, then of course, that might be a place that you would think of when you’re thinking about basically, our loan options. So credit unions lending policy, so this is an overview in general of credit union lending policies that are going to lend to the members.
01:59
So typically would need to be a member of the credit union make unsecured loans, meaning they may make loans that are not secured, such as when you’re looking at the larger loans, loans that are going to be secured by say property that might be the home or a car or something like that. So they may make some unsecured loans may require collateral or the signer for loans over a specified amount.
02:24
So clearly, if the loans like it would be normal policy similar to a bank are over a certain dollar amount, they may require collateral or some thing to be supporting or backing up the loan over a specific amount, or a cosigner, a cosigner would be someone else that would be responsible for the loan. So you’re going to say, Hey, your, if the bank says, Hey, your credit is not stellar here, and but you know, we want to give you a loan, possibly, if we have someone else to sign and also be be on the hook, in essence, in the event that you don’t pay back the loan, then that can be a more support for being able to get the loan may require payroll deductions to pay off the loan.
03:06
So that would be a situation where possibly you actually go to the employer and say, we would like the employer to be taking the money out of the payroll before they even get to to us as the employee. And that would be possibly giving more assurance to the credit union, that you’re going to make the payment given the fact that it’s going to be pulled directly out of the paycheck, may may may submit large loan applications to a committee of members for approval.
03:33
So that could of course take a little bit longer of time in order to process if there was a larger loan, I have to go through that approval process offer a variety of repayment schedule, so they may have some different types of repayment schedules there. Remember that, obviously, as you move away from of course, a traditional repayment schedule, which would basically be an installment type of arrangement, then you want to be more careful on on how you’re going to set up the loan, because they can get kind of confusing once you move away from basically the standard.
04:05
So kind of loan types basic loan types, you might find it a credit union could include the personal installment loans that we talked about in prior presentations, usually, those being a larger type of loans, larger type of loans that are going to be paid back in fixed intervals, generally are oftentimes monthly credit card loans. So they offered the credit card loans similar to a banking institution here, primary mortgages and secondary mortgages. And again, similar to possibly a bank in that sense as well.
04:33
So we looked at some of these these types of loans in prior presentations, so I won’t go into them in more detail or too much more detail here. But of course, we have the personal installment loan, those being the loans that generally will be set up in installment increments, usually the larger type of loans, possibly for things that are going to have purchases of items such as a home or a car or something, the primary mortgages for the mortgage and the second Dairy mortgage