Kitchens by Riland

Credit Union history began in England. The credit unions charge lower interest rates than the banks. They were created to help people with small business access business loans which the banks could not give them. They came with low interests that were easier for the people to pay than the high interests of the banks.

The first credit union was formed in 1814 in England by a group of weavers. They wanted to buy the materials they used in weaving in bulk. They made a group that was called the Rockdale Society of Equitable Pioneers. The members bought shares to get capital of the cooperative. The money was then used to buy the goods they needed at a lower price. This saw the credit union concept spread to other parts of Europe and later to the United States in 1908.

In Germany, the credit union was formed in 1846. There was an acute famine that made Hermann Schulze-Delitzsch organize a cooperative. He wanted the people to come together and make their own bakery that would help them afford bread that could be affordable to all members.

In Canada, the credit unions were introduced by a court reporter. He brought the idea of credit unions in Canada in 1900. This relieved the citizens from high interest loans that were the only prevalent source of money.

The credit unions spread to the United States. The unions became popular and by 1920 there were over one thousand credit unions in the country. This led to Federal Credit Union Act that was signed 1934.

The Federal Credit Union Act was signed to help supervise the unions. It also enabled the formation of the independent Credit Union National Association. The act helped the unions to be federally incorporated.

Today, the credit unions have grown rapidly. Millions of people are members of credit unions. The credit unions helps people to grow economically through their excellent services that are meant to benefit the members.

There are seven characteristics that make any group to be considered a credit union.

* The membership of the group must be voluntary.

* There must be democracy in the cooperative

* Every member must have shares in the cooperative

* The cooperative must be independent of other organizations.

* Members must be given information

* The cooperative must work with other cooperatives

* The cooperative must work to ensure community development.