Pros and Cons of Credit Unions

Credit unions are cooperative financial institutions, owned and regulated by the people who make use of their services. The members belong to the same community, workplace or church. It is monitored by the government, fully covered by insurance and run by volunteers.

Now, if someone tells you to ditch banks for a change and give credit unions a chance, would you go for it? Read up on the PROS and CONS of credit unions before opening up a new account in one:

PROS OF CREDIT UNIONS:

  1. A credit union is a non-profit organization.

It’s owned by the members, so if you are part of the credit union, you shouldn’t have to worry about the owner of the bank running off to Mexico with your money. All the members control the capital of the organization.

  1. It’s as dependable as your local bank.

You heard it right. Not only do you get a safe and convenient place to store your money, you also reap great interest rates that are usually more competitive than those of the commercial banks. Reasonable loans also await you!

  1. Better service? Check.

A credit union always looks out for the welfare of the members so you’re usually going to receive service better than that of any other financial institution such as the service you get with cobra payday. Remember that a bank has vested interest and is almost always after profit. Credit unions are made up of members who would do everything to keep everyone happy and satisfied.

  1. More services added up!

Since the Great Depression, when credit unions played a huge part in helping out the citizens, this institution of service has gone a long way! Now you can avail yourself of credit and debit cards, checks, car loans, mortgages and other usual banking features.

  1. $1 and you’re in.

For many credit unions, it only takes a dollar to open up an account and benefit from their services. You never thought a dollar could go that far, did you?

CONS:

  1. Limited number of branch offices and fewer ATMs.

It’s not a huge bank, that’s a given, so there aren’t a lot of ATMs for members’ emergency purposes. But there are existing ATMs with no overcharges catered for the credit unions, so this problem has downsized dramatically.

  1. Unreturned cancelled checks.

There are credit unions that just forget about cancelled checks. But then again, so do some banks!

  1. Some local credit unions don’t offer many services.

Not all credit unions double as a one-stop-shop for all your financial needs. Advice: keep an account in a bank as well as in a credit union for different purposes. Just in case.

  1. You’re forced to save and pay.

Now this isn’t exactly a bad thing. As you start out in a credit union, you are obliged to keep depositing money into a savings account. It takes around thirteen weeks of putting money in regularly before you can apply for a loan.

  1. Possible delay in getting your funds.

There are local credit unions that wouldn’t be able to hand out your money on demand, especially large amounts. Some people take this as an advantage because it means they could look for money elsewhere and their savings stay there.

Membership is easy. Join your local credit union, fill out a form and voila! Most applications get approved and then you would have your account in no time. Try credit unions for a change. You’d never know when you’d need that extra money stashed in there.

The Advantages and Disadvantages of Bad Credit Payday Loans

If you are in a financial bind or have an emergency that requires quick cash, you may have considered using bad credit payday loans to help you until your next paycheck.

If you are new to the world of cash advance payday loans, you might wonder what the pros and cons of taking out a loan are, as opposed to the repercussions of the late penalties and reconnection fees that you might face if you do not.

While payday loans can be expensive due to their extremely high interest rates and fees, sometimes, the loan rate can be a lot cheaper than the alternative of late penalties or overdraft fees.

What are payday cash advances?

Payday cash advances are also commonly known as bad credit payday loans. These terms are interchangeable due to the nature of the loan. Payday advances are short term loans designed to help people in emergency situations. They are typically used by people with bad credit, because they do not require a credit check in order to qualify.

While bad credit is acceptable for payday loans, sometimes, people with good credit use them because they need money in a hurry and cannot wait for a traditional loan or they do not want any additional debt on their credit report.

Payday loans are based on your pay and only require proof of income and identity to qualify. They are usually issued for a term that ranges between 14 to 35 days, but some lenders offer repayment terms that can extend as far as 180 days.

Advantages

  1. Qualifying – It is easy for anyone who is gainfully employed to qualify for bad credit payday loans. Most lenders only require proof of income or bank statements and proof of identity. Once this is provided, the loan is usually approved.
  2. Approval – Once proof of income and identity is provided, most payday loans are typically approved, on the condition that you do not have any other cash advance loans or have not defaulted on one in the past.
  3. Convenient – Payday loans are a fast and convenient way to get cash in an emergency. Most lenders are open longer than banks and credit unions, and some online lenders offer around the clock service. Online lenders can take longer to process, but some offer funds within several hours of your application.

Disadvantages

  1. High rates and fees – Bad credit payday loans come with pricey interest rates and fees. This is because they do not require a credit check in order to qualify. On average, a one hundred dollar loan can cost between twenty-five and thirty dollars for seven to fourteen days. This greatly increases the more you borrow and the longer it takes to pay it back.
  2. Terms – Since terms vary from state to state and company to company, it can be difficult to decode all of the legal jargon. It is important to carefully read all of the terms and conditions to make sure there are no hidden fees.
  3. Dishonesty – Not all payday loan lenders are trustworthy. You have to be careful when selecting lenders for bad credit payday loans to make sure they are reputable and operate using fair practices and upfront fees.