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What is a service first credit union? First of all let us discuss on what is a credit union. A credit union is a financial organization which is run by the members in it. It is a co-operative organization where each and every member in it is the owner, controller and the beneficiary. So a service first credit union is nothing but a non-profitable organization which functions in providing help to other members of the organization whenever they are in need.

Now when it comes to the importance of using a service first credit union for your financial purposes, there are lot more advantages than a normal financial organization. Some of the common benefits you can gain from using a credit union are extremely low interest rates, no real concern of being cheated by other people etc. Since these service first credit organizations are run by the members itself, there is no chance of a fraud because the members are selected only after they have a reputation of having good credits. In addition to that it is the members who help out each other, so each and every member in this organization has to make his/her own contribution to help out the fellow member. Hence even if a particular member is unable to repay the debts there is no real big loss to a single member as the loss is shared by every member in it.

It is completely different from financial organizations like banks or private moneylenders. In a financial organization the interest rates would fluctuate according to the market or in other words it is decided by the current position of the market. However in a service first credit organization the interest rates are decided by the board of directors on consensus with all the other members of the credit union. The board of directors is chosen by the members on a democratic voting basis. So there is no chance of the directors being unfair to the members by imposing them huge interest rates or limited time periods.

The other main advantage with a service first credit union is that the loan amounts will be sanctioned in a jiffy unlike a normal financial institution. In a financial institution there would be lot of credit checks, documentations and other diplomatic procedures which are time consuming and by the time the loan is sanctioned the very purpose of your loan would have vanished.