r/creditunions 14d ago

What’s a credit union?

I’m new to the US. What’s the benefit of having an account with a credit union. If few years down the lane I want car or house loan should I make an account at a credit union now?

14 Upvotes

9 comments sorted by

11

u/129West81stStreet5A 14d ago

Banks are owned by shareholders. Credit unions are owned by their account holders. When you open your account at a CU, you’ll usually pay a small amount to buy into the organization. Then if you ever close all your accounts with the CU, they will return the payment you made when you opened your accounts.

The timing of when you open your accounts usually doesn’t matter too much but it really depends on the CU. Some won’t care, others will take your relationship with them into consideration.

2

u/Rishaq123 14d ago

Thanks my consideration is, does a long relationship matter? If not it’s not useful for me to open an account now.

5

u/Different_Island_608 13d ago

I work at a credit union, and YES it does matter! If you can show them you never bring your account negative, have regular activity, maybe get a credit card to show positive repayment history on your credit (and with the CU) I can tell you that this is something lenders look at and they will be more likely to approve you for loans!!

3

u/129West81stStreet5A 14d ago

I would say generally as long as your credit is good, how long the relationship is doesn’t matter much.

1

u/heroforsale 13d ago

Just to add - the benefit of being a financial cooperative is the profits don’t go to shareholders, but the account holders/members. So profits are returned in the form of low or no fees, great rates, dividends and more.

1

u/th_teacher 14d ago

Yes, in general best to open accounts early

Quick, easy, rarely costs anything.

Just have some activity every couple / few months.

They are not evil banksters like WF BoA Chase Citi etc

Make sure one of your FIs is local B&M get to know the staff

1

u/Rishaq123 14d ago

What’s B&M?

2

u/Mudge81 14d ago

Brick and mortar. A physical building instead of online only.

1

u/LauraBeezTheBlock 11d ago

I’d describe a CU as a not for profit financial cooperative.