A credit union is a financial institution, much like a bank, the difference being that it is owned and controlled by the people who are members of it and use its services. Credit unions are generally designed to serve specific groups or sectors. These groups may be teachers, labor union members, or share some other type of common bond such as where they live. Credit unions are non-profit and members usually join in order to receive lower rates on loans, save money and other perks that come with banking with a smaller financial institution. A credit union is much like a private club, a member’s only, if you will. It is based on the concept that members pool their money and make loans to each other. Credit unions take great care of their members and those members receive a level of service that is not usually available at standard banks and financial institutions.
Being a member of a credit union is like owning your own bank. This is particularly of interest to members of specific work sectors, like labor unions. The Teacher’s Federal Credit Union is exclusive to teachers while at the Organized Labor Credit Union membership is only open to labor union members and their families who belong to locals of a certain listing of counties. The membership policies of these credit unions can be strict as it is contained within a specific group or community. Plus, when credit unions are geared toward these specific groups, like labor unions, they modify their services to cater to these specific clusters.
And membership certainly has its privileges! A credit union allows you have more control over how your money is used. You have more security and you usually receive better rates on loans and mortgages. Additionally, when you join a credit union you know that the other members, the other people who are members of your special club and also have a say in how the money is used, have the same interests as you do. You have a common bond with them. You know that your fellow members understand your way of life, your priorities, they relate better to you because they work with you. With credit unions you know you will get a personal touch.
Credit union members usually enjoy perks such as high interest rates on savings accounts, lower rates on credit cards and lower rates on loans. A credit union offers most of the same services that a bank does, except that the credit union in non-profit and is focused on services and saving the member. Banks generally operate in the interest of their shareholders. In other words, not you. Just make certain that, should you choose to go with a credit union, it is NCUA (National Credit Union Administration) insured. In the event that something happens to the institution and it becomes insolvent, the NCUA guarantees that up to $100,000 of your money will be replaced.
There are several ways to join a credit union; first you must find one that fits your interests. You can check with your state league to see if you are eligible to join a credit union there. You can find a list of state contacts here. You may also ask your employer or labor union representative. Ask your coworkers and family members. Just how extended your “family” may be depends on the credit union’s definitions of family. Some allow immediate family only while others are more liberal. Some credit union memberships are defined by region or community. Ask your neighbors if they know of a credit union that you may join. The phone book may seem like a good old standby, but credit unions rarely advertise. A better bet would be to call the Credit Union National Association at (800) 358-5710 where you will be connected to a representative in your state who can help you. You may also check the Credit Union National Association’s credit union locator here.
Credit union organizations can aid you in researching the benefits of a credit union membership versus a bank. The National Association of Federal Credit Unions has extensive information on their website to help you determine if credit union membership is right for you. Visit NAFCU and research the benefits of membership. They can help you find a credit union, assist you with membership and answer any questions that you may have regarding membership. You can also find other helpful information regarding credit union memberships by checking out the links at the end of this article.
A credit union is usually a safe, secure solution to your financial and banking needs, but just like any other venture it requires a little research to make sure it is right for you. Remember that joining a credit union places you in an elite, member’s only club that is focused on you and your needs. There are many benefits and some that are especially beneficial to labor union members. You may enjoy higher interest rates on your savings account and lower rates on your loans and credit cards. If you have any problems with your account, you will likely find that a credit union is more willing and eager to assist you in correcting the problem. It is banking with a personal touch that you will likely enjoy. Check it out, you may find that it is exactly the way you need to go.
For more information:
How to Join a Credit Union
NAFCU Glossary of Credit Union Terms
Bankrate Glossary of Financial Terms
NAFCU Credit Union Acronyms
http://advice.cuna.org/econ/member/download/top100_4q05ratios.pdf |
How Union members can benefit from Credit Unions.