Questions. You’ve got ‘em. Of course you do. And we’ve got answers - straightforward, no-nonsense answers. Don’t see your question in the list below? Don’t understand an answer (in spite of our best intentions)? Want to know more? Drop us a line. We’ll send an answer. And we might just add it to the list here - if you want to know, odds are someone else wants to know, too.

What is a credit union?

A credit union is a non-profit cooperative financial institution.

What does that mean in English? A cooperative is a business like any other business, but it belongs to the people who use it and operates only for the benefit of its members. Credit unions are owned by the people who use them, and their stated purpose is to serve their members, not to make a profit.

What does that mean in practical language? A credit union is a safe place to save and borrow at reasonable rates. In essence, members pool their money to make loans to one another. Because they’re not for profit, they can offer members things like higher interest rates on savings and lower interest rates on loans.

How can I become a credit union member?

Credit unions are for everyone, but no one can belong to every credit union. Every credit union has a "field of membership," and a common bond that members have to share. Fields of membership can be defined by place of employment, church membership, or residence in a community, to name just a few ways.

Chances are, there’s a credit union near you that you are eligible to join. To find one:

Ask your boss

Does your company sponsor a credit union? Does it belong to a select employee group that is served by a credit union? Is there a local credit union for members of your trade or profession?

Ask your friends

You might be eligible to join a credit union because you belong to a union or other organization.

Ask your family

Most credit unions allow credit union members’ families to join. Each credit union may define family in its own way, though. For some, you might have to be in the same household or an immediate family member. For others, your cousins, grandparents, and aunts and uncles might be your way to membership.

Ask your neighbors

Community credit unions serve members united by geography. Your town, neighborhood, or county might have a credit union.

Ask us

User this online resource to find a credit union near you, then give ‘em a call. Or call the Michigan Credit Union League at 1-800-262-6285 x536. Or e-mail us. We’d be happy to point you toward a credit union or two that might be right for you.

If you live outside of Michigan, call the Credit Union National Association (CUNA) at 1-800-358-5710. The automated phone system there will give you the phone number for your state credit union organization. Or Click Here look up your state credit union organization on the CUNA Web site.

Why should I join a credit union?

Service

• Consumer surveys show that credit union members are consistently more satisfied with the service they receive than the customers of banks or savings and loans are.
• Most credit unions follow the creed, "Once a member, always a member." That means you’re not a faceless customer - you have a relationship with the credit union, and it’s a long-term relationship, at that. Your credit union will go the extra mile to help you with your needs, whether you need a small service like an available notary, or a larger service, like help getting a loan.

Numbers

• Credit unions usually offer very good returns on investments and lower interest rates on loans.

Rewards

• As a member of a credit union, you reap the rewards of good financial years. When the credit union comes out ahead, it can offer lower loan rates or even cash bonuses to its members.

Security

• In bad years, banks tend to either raise loan interest rates or close shop altogether. Credit unions rely on financial reserves to absorb unexpected losses, so members are protected when times get tough.

Community

• Credit unions benefit their members. Formed for service, not profit, credit unions exist to help their members.

• Credit unions benefit everyone. Because credit unions offer lower rates on loans and higher rates on savings, banks and other for-profit financial institutions have to keep their rates low enough to be competitive. This market pressure is good for all consumers, not just credit union members.

Are credit unions safe?

Yes. Credit unions are among the most secure financial institutions around. Every credit union in Michigan is insured by the National Credit Union Share Insurance Fund (NCUSIF), which is administered by a federal government agency. No member of a federally insured credit union has ever lost even a penny of any insured savings.

How are credit unions organized?

Credit unions are democratically run and each member has one vote. Members elect the board of directors and make the rules. So, when you join a credit union, you get a say in how the place is run. You don’t have to be a big shooter, either. Most credit unions allow members to open and hold accounts with as little as five or ten dollars in them.

Each credit union’s organizing charter defines who is eligible to become a member. Members have something in common, usually something like an employer or place of residence. No credit union can offer membership to everyone, and no one can belong to every credit union. But odds are good that there is a credit union near you that is right for you. To find a credit union near you, click here.

What services do credit unions offer?

Credit unions all offer savings accounts, usually called "share accounts." Other services vary and are tailored to meet the needs and interests of the individual credit union’s members. This is one place where member voting comes in: as a member, you get to say what’s important to you.

Credit unions generally offer basic services, but with a twist. Look for:

• Low-cost or free checking with low or no minimum balance
• High interest rates on savings accounts, certificates of deposit, and money market accounts
• Low interest rates on loans
• Credit cards with low or no annual fees and low interest rates
• Inexpensive money orders and cashier’s checks

• Online banking
• Direct deposits, and cable and wire deposits
• Tax preparation services
• Brokerage services
• Traveler’s checks
• Group insurance
• Notary services
• Small-business loans

How many credit unions are there?

There are more than 10,000 credit unions in the United States, with nearly 74 million members. Michigan has 450 credit unions with more than 4 million members. There are about 10 million people in Michigan: you do the math. That’s a lot of people.

How is a credit union different from a bank?

Credit unions offer services like banks do, but there are some differences.

• Credit unions are non-profit organizations. This means that they can often offer higher interest rates on savings and lower rates on loans than banks can.
• Credit unions offer most of the same services that banks offer, but the services are named differently. A share draft account compares to a checking account, share certificates compare to certificates of deposit, and regular share accounts compare to savings accounts.
• Many smaller credit unions offer only basic services. Loans to members are credit unions’ biggest investment, mostly home and auto loans.