All the members pool their funds to make loans to one another. The volunteer board that runs each credit union is elected by the members. This is what a credit union is not: a profit-oriented organization or a charity. Rather credit unions exist to provide a service.

In fact, the concept of a credit union is nothing new having started as far back as 1909 in New Hampshire. Whenever like-minded people get together to help each other financially by pooling their resources together, it is more or less a credit union. Credit unions generally cater for people in the local area or community, groups or employees in a particular company or organization. For instance there are teachers credit union, Virginia credit union, America first credit union, Travis credit union, Navy federal credit union, Holston Methodist federal credit union and many such like.

To be a member, you have to be eligible to be a member according to the targeted institution’s rules. For example, you cannot join the nurses credit union if you are a teacher a vice versa. Also if you live in Virginia for instance, it may be impossible to join a credit union which serves the local people in San Francisco.

There are low-income credit unions which exist to help its low income members during severe hardships. In the past few years, NCUA (National Credit Union Administration) has emphasized the benefits these institutions provide to the many people who are often unserved by traditional banking institutions. The NCUA has also established a Revolving Loan Fund which provides technical assistant low grants to these low-income credit unions.

There are also corporate credit unions which do not directly serve people but rather other credit unions. There are about 32 such federally insured credit unions in the country today. You can visit the Holston Methodist Federal Credit Union, Navy Federal Credit Union and Travis Credit Union ( This credit union serves those who live, work, or attend school in Solano, Yolo, Sacramento, Placer, San Joaquin, Stanislaus, Napa, Contra Costa, Colusa, Sonoma, Alameda or Merced Counties ) websites if they are of interest to you.

To find more information on credit unions in your area click here.

If credit unions do not suit you, credit cards, then another alternative is bank overdrafts. Generally, bank overdrafts are cheaper than credit cards if used appropriately. If you have been using online banking then another alternative is bank overdrafts. If you have been using online banking a longer time and have good credit history, you may even get it at a cheaper rate than normal.

Usually, to you can obtain an overdraft on accounts that are active, preferably an account in which you receive your monthly pay check. Once your overdraft limit is set, you can draw it whenever you want and pay it amount due at the specified time. The trick is not to go over the limit as you are likely to incur overuse charges.

Another alternative to credit cards is loans. Loans are generally cheaper to borrow than credit cards – obviously depending on your credit history. The only disadvantage is that with loans, you have to pay a set amount each month until the loan term comes to an end. With a credit card, once you meet the minimum payments, any extra payment is up to you.

On the whole these alternatives to credit cards are options for people who may find it difficult to obtain one. Credit unions especially, are the way to go as they have the framework to help the financially distressed.