If credit unions don't pay taxes because they are their members owned. Than why do they treat you like a bank?
Answers:
I think as with anything, there are both good and bad. To be honest the reason I prefer my credit union is because I can get in and out in just a few minutes. Whenever I am forced to go into a mainstream bank (i.e. BoA) I find myself waiting in line for hours.
But where do you think they get the money from they lend you ? Other members, when you had 160,000 bucks in the credit union how would you feel if they lent it out without asking why, or to who, or to anyone for any purpose just because that person was a member, banks make money by charging intrest on loans it makes by using funding from other people's deposits in turn it pays the depositors by intrest by using there money, that is why they pay higher rates of intrest on the more money you keep in it or the longer you keep it in because that is the more money they can lend. Credit Unions dont pay taxes because in essence they dont make money they pay you the dividends that the bank would usually get on lending your money. So they have to protect the depositors money by requiring certian information before they lend it. They have to be reasonably sure that they will get it back.
because they can
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