Known as the “Gateway of the West” because of its proximity to the Missouri River, Omaha is the largest city in the state of Nebraska and home to over 460,000 residents. Omaha boasts of a strong economy, diverse industries, and a business-friendly environment.
Apart from being the birthplace of one of the wealthiest men in the world, the city also houses the headquarters of several Fortune 500 companies and other major corporations in the United States. Given Omaha’s geographical location, the Nebraskans’ passion for work, and rapid economic growth, the city is selected as one of the “Best Places for Business and Careers” by Forbes Magazine.
If you are an entrepreneur searching for funds to expand his venture and take advantage of the city’s favorable business environment, you may consider becoming a member of a Federal Credit Union (FCU) so that you can apply for a loan. Do not believe the many negative rumors surrounding Omaha FCU because most of them are just misconceptions. To help you appreciate what credit union is about, here are the truths behind the myths:
Myth 1: It is Difficult to Loan Money from Credit Unions Because They Do Not Have as Much Money as Banks.
While banks generally have more money than credit unions because of their for-profit business model, they have strict and stringent requirements before you can apply for a loan. If you managed to get a loan, you need to bear the bank’s high-interest rates and fees. Since an Omaha FCU does not operate for profit, they can freely direct their excess funds to help their members to not only secure loans more conveniently but to avail of them at a much lower interest rate than banks.
Myth 2: There are Very Few Credit Unions in Omaha.
Many people are under the impression that it is better to partner with banks because they are everywhere, while it can be challenging to locate a credit union in the city. Nothing can be farther from the truth, considering that there are 71 credit unions in the state of Nebraska, and more than 35 percent of them are located in Omaha.
Myth 3: You Need Excellent Credit Rating to Secure a Loan from Credit Unions.
This misconception is true for bank loans, as you would most likely be rejected outright if you apply with a bad credit rating. With credit unions, however, getting funding is possible even with poor credit status. Loan officers of credit unions will work with you so that you can find a financing solution that will meet your funding needs. As such, you have the chance to get the money that you need and the opportunity to build your credit rating as well.
Myth 4: Credit Union Offers No Guarantee.
If you are a federal credit union member, your account is guaranteed up to $250,000, the same insurance guarantee as traditional banks. While credit unions are not covered by the Federal Deposit Insurance Corporation (FDIC) as banks are, FCUs are insured under the National Credit Union Administration.
If you try to learn more about how an Omaha FCU works, you will learn to realize that it is the best fit for new entrepreneurs like you. Unlike traditional banks that will most likely turn you away, credit unions will walk the extra mile and find financial solutions that will allow you to get the funding that you need without breaking your back to make payments.