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What can you do in a credit union? 

You know … What is a credit and savings cooperative? What can a credit union do for you?

Today in this article we will see everything related to credit and savings cooperatives.

These cooperatives are pinching a portion of the market to the bank, and now represent more than 8% of credit in Spain and almost 10% of deposits.





What is a credit and savings cooperative? Does it work like a bank?

Credit and savings cooperatives are non-profit organizations that provide financial services to their members.

If you need to pay your loans, a consumer credit counseling reviews is an option for those services.

If you are familiar with banks, the credit and savings cooperatives are similar.

They offer many of the same products and services as banks, and the experience of using these services is more or less the same.

Ownership is the main difference between banks and credit and savings cooperatives.

Credit and savings cooperatives are owned by the members (customers of the credit and savings cooperatives are called “members”, so the clients are the owners of the credit and savings cooperative).

The banks are owned by investors, who may not be account holders or members of the community.

When you open an account in a credit and savings cooperative, no matter how small, you become a partial owner of the institution. All members have the right to vote for the leadership of credit and savings cooperatives (the board of directors).

Taxation is another difference. As a non-profit organization, a credit union does not pay the same taxes that banks pay.

However, credit and savings cooperatives are not charities. They must make sound financial decisions, collect revenues, pay salaries and compete with other institutions.

When it comes to the security of your deposits and basic services, banks and credit unions are very similar.

What can you do in a credit union?

Credit unions offer financial services to consumers, businesses and other organizations.

The most common offers are described here, but each credit union is different.

Savings accounts provide a safe place to hold cash and earn interest on your savings.

In a credit and savings cooperative, savings accounts are called share accounts because you, like all other clients, are partial owners of the credit and savings cooperative.

Current accounts allow you to spend your money without monthly payment limits.

There are several ways to access your money:


Most credit unions offer a free debit card to make purchases online and in person (you can also use the card to withdraw cash at an ATM).

The money is taken directly from your checking account, so you must have enough money in your account to make purchases.

Payment of bills online

Pay your regular bills or any other expense, establishing an online payment.

Execute bank transfers or transfer of money between accounts.

Pay in cash

You can always get cash from an ATM and spend with paper money.

You can also take it out in the credit union.

Certificates of deposit (CD)

They are super-powerful savings accounts.

CDs pay more than regular savings, but there is one drawback, you have to commit to leaving your money on the CD for a specific period of time (often one to three years).

If you prefer flexibility, some institutions offer money market accounts, which pay similar interest rates and allow you to access your funds throughout the month.

The loans

The loans are available for a variety of uses. Installment loans the best alternative

The credit and savings cooperatives use the money that other clients deposit to finance loans for borrowers with their respective interests.

In our loan comparison, you can take a look and see the different types of loans we have for you and take the one that best suits your financial needs.

Mortgage loans

They provide funds to buy a home.

Second mortgages and mortgage credit lines allow you to use the equity in a property you already own.

Loans for cars

Car loans could be one of the most popular loans from credit unions.

Rates are often competitive, and credit unions may have relationships with local car dealers.

Personal loans

Personal loans can be used for almost anything you want.

These loans are approved based only on your credit scores and income.

There are also loans with collateral and without collateral.

The credit cards

Credit cards are revolving lines of credit that allow you to borrow and pay repeatedly, as long as you do not exceed your credit limit.

You can use them to make purchases in commercial establishments and also online.

Other services in these cooperatives

They are also available in credit and savings cooperatives. In most credit unions, you can get the following:

Official Checks

Like cashier checks or certified checks.

There is usually a small fee, but you should only need these items for the occasional down payment or other life events.

The safes

Safe deposit boxes are a safe place to store important documents and small valuables.

Your items are stored behind several locks, but when you need to recover anything from that box you can do it during banking hours.

Notarial services

Services can be useful when you need to prove that a signature is valid in official documents.

An employee of the credit union (which must also be a notary public) can place an official stamp on your documents and record the time and date of your signature.

Credit cooperatives in Spain

The products and services available to you vary from credit union to credit union.

Larger credit unions tend to offer a wider variety, while small credit unions can keep minimum offers.