A credit union is also referred to as a credit bureau and they provide benefits for both consumers and businesses. For consumers, they provide information and helpful tools for a clear understanding of their credit history and financial reputation, and to guard against the theft of personal information and potential fraud. For businesses, they provide powerful analytic solutions, backed by professional service and current, comprehensive data for all Southern African businesses.
On the other hand, banks are registered financial institutions that can provide consumers with a variety of products such as bank accounts, financing and transactional solutions for businesses and individuals. Banks can provide you with credit based on your credit profile, and you can open a bank account to invest your money in, do transactions and save money.
Credit unions only offer helpful information that people can use to make decisions in terms of where to apply for credit, and how their credit history reflects the moment. Businesses can also contact credit unions in order to obtain information about an individual’s credit history, as well as to confirm personal details. Whereas banks are able to provide clients with credit as they are registered credit providers, and serve as lenders to private individuals and businesses.
There are quite a few differences between credit unions and banks, and they each serve their purpose. If you have a clear credit history, the bank, it will very likely reflect on your credit profile at the various credit unions too making it beneficial for you to always ensure that you handle your financial transactions, investments and credit products to the best of your abilities.