Credit Unions
A credit union is an autonomous financial association of people formed to meet a common economic aspiration. This cooperative financial institution is owned and managed by the members that use its services. Credit unions extend their services to groups of people sharing something in common, like their place of residence, work or worship. What makes credit unions different from other financial institutions is that they are non-profit. They are established to provide convenient and secure place for their members to save money, get loans at reasonable rates and other services.
Insurance
Although they are controlled by members, credit unions are generally closely regulated by the government. Thus, they operate in a very prudent way. In the United States, deposits in over 9000 federal and state-chartered credit unions are insured by the National Credit union Share Insurance Fund, which is supervised by the National Credit Union Administration. It insures deposits below $100,000.
Eligibility
If you are apprehensive to deposit your money in or apply for a loan from a bank, then a credit union may be for you. Credit unions are for everyone. It must be noted, however, that the law sets some limits on the individuals who want to use their services. Generally, a credit union has its field of membership defined. Again, members should have something in common. It may be their employer, school, church or community.
Finding a Credit Union
If you are not aware of any credit unions that you can belong to, here are some ways to find one that suits you.
Go online: Visit the websites of associations of credit unions in your country. Most of these sites display a list of their member unions and representatives with their contact details. You can also use their “credit union locator,” which is normally integrated into the site. Once you have found one that matches you, grab the phone and call them to inquire.
Browse through the yellow pages: Because some credit unions do not advertise, you have to look for them. Yet, no matter how frugal they are when it comes to advertising, you can still see their contact numbers printed in the yellow pages. You may even find some of their rare ads stating their field of membership.
Ask around: You have no idea, but your company might actually be sponsoring a credit union. If not, then maybe an SEG (select employee group) has one. You can ask your boss about it. Some employers allow direct deposit of payroll to their credit union. You can also ask your family members. If your employer has none, then maybe your spouse’s employer has one. Many credit unions admit those in a member’s family, although it may be defined by the unions differently. You can also ask your neighbors if they know any.
Credit unions are a great alternative to banks and other financial institutions. If you are sure that it is what you need, find a credit union that can accept you and start saving money or signing up for a loan.
on 2010-03-18 at 06:17:22
This comment is awaiting moderation.on 2009-08-21 at 08:53:09
Not comment but a little info. Liberia National Credit Unions Association, LCUNA in Liberia before the 14 years civil conflict was very active but since stability was restored we are struggling very hard to reactivate the movement. Recent survey conducted in 9 of the 15 counties in Liberia we discovered 155 formal and informal credit unions. These credit unions need: supervision, monitoring, training, good governance,proper system setup and audit by LCUNA which we do not have the capacity.on 2008-11-06 at 17:12:21
Recently my mom gave me my old Whlie credit Union account book opened Aug. 21,1959. I was 10 years old at the time and I was so proud to be saving my babysitting money. Small amounts 1-2 dollars on a regular basis. The last entry was dated July 21,1965, leaving a balance of one dollar in the shares column. I am curious as to what becomes of these accounts. We moved that year,and I was never contacted. Does anyone have any info for me.on 2008-10-14 at 01:20:37
I think joining a credit union is great if you are inexperienced in banking and just everything finance-related. The members of the credit union share your interests and goals, so you can be sure that they're making the right decisions for you.on 2008-10-12 at 20:18:55
How is a credit union different from other financial institutions? Is it wise to join a credit union? I'm quite interested in them, and I'm considering joining one, if it's really secure.on 2008-10-07 at 22:43:30
Thanks for the info! I have to write a paper about credit unions and their significance in society, and this article helped me a lot. I hope you write more articles about this topic.