Why And How To Join Credit Unions

As the big banks have imploded, credit unions have been in the news more and more. Unlike the banks, which are owned by stockholders, credit unions are owned by the members. It’s this model and their avoidance of unnecessary high risk tactics that allows them to offer much greater benefits to the members.

Typically, their rates on loans will easily be the best, and going shopping for a house or car without them will likely cost you money. When car shopping, you should never walk into the dealership without a preapproval, whether from a local institution or online service. Doing this should allow you to beat their offer by at least a couple percent. If they can lower their offer, that’s great for you. If not, you can just go with the rate you’ve previously obtained.

Another advantage is that credit union credit card interest rates are capped at 18%. By contrast, banks can charge whatever they want, with no limits. Many bank customers who have never been late and never missed a payment have been finding their rates raised to or near the default rate, close to 30%. The worst rate currently offered is 79.9%. Even the average rate currently offered by banks is around 17%.

If customer service is important to you, credit unions also have a significant advantage in that respect. Recent surveys have showed that most bank customers are unhappy with the quality of service they are receiving, whereas a large majority of credit union customers are satisfied.

Other services vary but are available. For example, you may be able to obtain legal services, get discounts on insurance, or get free credit reports.

While all that sounds great, the question many people have is: how do I join a credit union? For years, I avoided them because I assumed you had to be a member of a certain group such as the military or work for the state. That said, I was surprised to find out when I looked into a local credit union that all I needed to do was work or live in that community. As I researched the subject further, I found out that there are many others that anybody can join with very reasonable requirements that are easily met.

Here are some of the major credit unions that anyone can join, usually by joining an organization for a nominal fee first, which will also allow you to help the community:

Alliant - PTA membership (national PTA has a $25 fee)
DCU - Reach out for Schools membership ($10 fee)
PenFed - National Military Family Association membership ($20 fee)
Patelco - CAFE-Y membership (can be obtained while signing up for Patelco)
USAA - Non-military members have access to most services

These are just some of the major ones, though. There are thousands of choices, which offer varying services to members, with varying degrees of membership eligibility. The NCUA.gov website is a great place to search to find one.

By: Jim S Dean

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Jim S. Dean is a stay at home father, freelance writer, and webmaster with an interest in a wide range of subjects. Visit his latest website Original Nintendo System.