Bad credit rating and your credit union

creditratingThe modern credit union history goes back to the nineteenth century. The idea of a membership based financial cooperative, which is basically controlled by the members and providing assistance to any and all members in financial matters and thereby acting as a non-profit organisation is perhaps the best choice for you, if you are truly intending to improve your bad credit rating. These community based local businesses intend to serve the people who are their members and are not functioning as commercial banking houses, which primary concern is, in fact, profit. Such credit unions are getting less and less, since that banks do perceive them as competition that diminishes their profit margins and in that control struggle many UK based credit unions had to fold within the past few years.

Why chose a credit union?

A credit union is a place where the approach towards the client is different than in any other financial institution. Instead looking at the client as a customer, the client is a member and a part owner of the credit union. As such, the goal is to assist, rather than sell the client something; the profit should be made by the client and not by the institution. Right there is the clear indication why other financial institutions do everything in their power to eradicate credit unions.

Additionally, a credit union will not abandon you or refuse you if you have bad credit. Quite to the contrary, they will do everything in their power and invest resources, in order to assist you in repairing your bad credit, consolidating your debt and enabling you to live a normal life. Certainly is there a requirement for providing a security or some kind of collateral for any kind of a loan, but a credit union will not just turn you down if you are not a home owner, or are collecting unemployment benefits. Even such income can be used to repair bad credit and the credit union counsellors will assist you in your task.

Getting a loan

While most of the financial institutions do ask, they do not actually care what you use the loan for, which you are attempting to get, if you have put up some kind of collateral as security. Only if you are actually purchasing the item you are putting up as a collateral, such as is the case when you are buying a home, house or a similar property. The credit union is genuinely concerned what you are purchasing with that money and the item that you are buying with that money is part of the consideration, when the loan is to be approved. Most likely the credit union will attempt to not only provide you with your financial assistance you seek, but at the same time procure funds for consolidating your bad credit, allowing you to not only receive the amount you seek, but also to fix whatever the reason may have been, that has put you in such a dire predicament.