Debit Cards V Credit Cards
When you’re under 18, you’re lucky! You can’t get into trouble with credit cards as you are under the legal age! But a lot of young people are encouraged to get credit cards when they turn 18! Beware as misuse of a credit card is one of the easiest ways to get into debt.
Let’s first look at the differences between the two. A debit card gives you access to your own money, so you are limited to withdraw or spend only as much as is in your account. When you turn 18...
Credit Unions
Banks are not the only choice when it comes to financial institutions. Queensland Teachers' Credit Union (which runs the Keyway program) is a Credit Union, not a bank.
Mostly Credit Unions and banks offer the same kinds of services to their customers, like savings, loan and investment products.
It is their structure (the way they are made up and operate) that is different. Credit Unions differ because every customer owns a share of the organisation, which means they get a say in how things are run. In this way, the Credit Union is owned by its customers and is a co-operative.
On the other hand, most customers of banks are not shareholders. Therefore, there are two groups of people to please when it comes to running the place.
Many Credit Union members believe their customer ownership makes their financial institution more interested in looking out for their needs, particularly when it comes to setting interest rates and charging fees. Today there are literally hundreds of Credit Unions throughout Australia.
Queensland Teachers' Credit Union was formed by (surprise!) teachers, with the aim of pooling their savings together in order to lend to other teachers. Back then only teachers could be customers (and shareholders), but that's all changed now. Today Queensland Teachers' Credit Union is open to anyone who wants to join!
You can find out more about Credit Unions by taking a look at these links:
You've probably heard of building societies too. They are similar to Credit Unions in the way they are structured, and provide similar services to banks.
