Why can a credit union lend money to members at reduced rate

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02-06-2022
Business

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Why can a credit union lend money to members at reduced rate

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Dero777idn Dero777idn · Answer 1 · 2022-06-02T20:59:30-04:00

Dero777idn Dero777idn

02-06-2022

Answer:

Credit unions are able to offer lower rates compared to traditional banks because of their business structure. Most banks are for-profit companies, meaning they reinvest their income to earn more profit or they pay it out to shareholders. Banks are also subject to federal and state income taxes.

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