Good News from my Credit Union

[Anonymous]

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@Anonymous wrote:
I've never had an account with a credit union and I'm sure there is nothing wrong with them, but the fact that you think they are so much better than banks because of transparency and deposit insurance of $250,000 seems a little absurd to me.  If you want financial information on any federally insured financial institution, their quarterly financial information is availble for anyone to look at at www.fdic.gov.  Additionally the increase in deposit insurance was the same for banks as it was for credit unions.  The biggest benefit that I see to credit unions is the lower interest rates on loans as they are not for profit organizations.  Just my two cents.

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I don't think anyone is implying that the national program to raise deposit insurance to $250K makes CUs any safer, and every person here is aware that all banks have adopted that, in fact, they had no choice in the matter...

but I think it is saying something very important that a certain bank is willing to post its losses and gains in broad daylight for all customers to peruse, instead of leaving them for a very few savvy customers to track down on the internet.

Also, I think the main point of most of the posters is that some of these CUs have kept their hand very close, so they have very little to lose in the current 'credit tsunami' because they have not played Russian Roulette with unconventional loans & products. THAT is what makes me feel safer, that my CU had no interest in making profit for profit's sake, and thus, there is a much smaller chance that I will ever have to take them up on that $250K insurance!

[Junejer]

Hey JB, I think that the members are saying that they think that their CU is superior to banks, because banks have taken on many risky loans over the past decade, and thus, have put their customers in a precarious situation. CUs typically don't do those types of loans. Things are played a little closer to the vest with CUs AND smaller privately owned banks.

I have accounts with both banks and CUs. Trust me, I feel much more comfortable with my CUs at this point than I do with the bank (and I used to work for this bank!).

[Miner]

This is part of a statement that my CU sent out last month:

...Kinecta continues to have a strong capital position, with a ratio at 8.04%. That is well above the NCUA guideline of 7.00% for a well-capitalized credit union, and the FDIC guideline of 6.00% for a well-capitalized bank...

I moved all my accounts from BofA, 10 years ago and have never regretted it.

[Junejer]

When DF and I tie the knot, we are the heck out of there for good. She is reticent, because she has had her accounts since she started college, but that's just a bullet she is gonna have to bite.

[haulingthescoreup]

Not all CU's are federally insured. Some are with a private insuror.

CCCU (Christian Community Credit Union) is one of these. I have no reason to think that the insuror is not reliable, but members should be aware and check with them about coverage limits.

I agree with ByrdMan --it's the fact that CU's as a whole refused to join in the mortgage sucker loan frenzy that makes them so solid now.

[MidnightVoice]

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haulingthescoreup wrote:

it's the fact that CU's as a whole refused to join in the mortgage sucker loan frenzy that makes them so solid now.

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They also have money available to lend, which is very good news for some of us 

Message Edited by MidnightVoice on 10-25-2008 05:12 PM

[Bfent1]

what are the requirements to get a loan from a credit union, If you know it would be helpful, trying to get a $10,000 loan from my credit union don't want to be turned down.