How To Join A Credit Union (2024)

There are nearly 3,000 federal credit unions and over 1,700 state-chartered credit unions in the U.S. according to the National Credit Union Administration, so if you’re looking to join a credit union, you’ve got options. Some require you to live or work in a particular state or county, but others may allow anyone to join. Here’s how to join a credit union, whether you’re looking for small and local or big and nationwide.

What Is a Credit Union?

Credit unions provide banking products and services such as checking accounts, savings accounts, credit cards and loans. But unlike banks, which aim to generate profits for shareholders, credit unions are not-for-profit institutions that often funnel profit back into business operations. That can mean better rates, lower fees and more personalized services and benefits for depositors, who are members of the credit union.

Credit unions are member-owned, giving depositors control over how the institution is run. In addition, credit unions are typically smaller and more community-oriented than banks. While banks are insured by the FDIC, credit unions are insured by the NCUA.

How To Join a Credit Union

Credit unions often serve specific communities or professions, so eligibility may depend on factors such as your location, employment or family members’ affiliations. Some credit unions may only offer membership to military members or employees of certain agencies, organizations or companies and their families, while others may restrict membership to residents of certain counties. However, not all credit union memberships are exclusive to certain groups. Some are open to all, although they may require applicants to join or donate to a partner organization or club.

Here’s a step-by-step guide on how to join a credit union.

• Find a credit union to join. If you value in-person support, then finding a credit union near your home may be the way to go. The National Credit Union Administration (NCUA) provides a Credit Union Locator that helps you search for credit unions nearest you based on your ZIP Code. We’ve also curated a list of the best credit unions in each state to help narrow down your options.
• Verify eligibility requirements. Before filling out a membership application, verify your eligibility. You can do so by checking the credit union’s website or contacting them directly. While some credit unions may have strict membership eligibility requirements since they cater to a niche group, many are open to the general public.
• Gather the required documents. Once you’ve verified your eligibility, start gathering the required documents for your application. The information you need to provide varies depending on the membership requirements, but most credit unions will ask for a government ID or driver’s license, Social Security number or tax identification number.
• Open a credit union account. Many credit unions allow you to apply and become a member by simply filling out an online application on their website, but you may also apply in person. Once your application is approved, you may be asked to open a savings account and deposit around $5 or make a one-time donation.

How To Join a Credit Union With Bad Credit

As long as you meet the membership requirements, a poor credit score typically won’t be a dealbreaker when it comes to joining a credit union. Credit unions usually don’t check your credit score when you open a checking or savings account. However, they may request a copy of your ChexSystems report to see your past activity with deposit accounts. Negative marks on your banking history could impact your eligibility.

While credit unions generally don’t look at your credit when you join, they will pull your credit report if you apply for a loan or line of credit in the future. If you’re worried about your credit, you can request a free copy of your credit report from the three credit bureaus at annualcreditreport.com.

What Credit Unions Can I Join?

The most straightforward way to find the credit unions you can join is by using the NCUA’s Credit Union Locator to search for options near you. Once you’ve found a few options, you can use the Locator’s companion tool, Research a Credit Union, to learn more about them. Then, head to each credit union’s website to see what their membership requirements are and whether you’re eligible.

Many of the institutions on Forbes Advisor’s Best Credit Unions of 2024 list allow anyone to join by opening a savings account and making a $5 deposit or paying a one-time fee.

Why Join a Credit Union?

While banks may be the more conventional choice for many, credit unions offer a unique set of benefits that often go overlooked. Consider the following advantages of a credit union to decide whether it’s worth joining.

• Community involvement. Credit unions often reinvest their earnings back into the community by supporting local businesses, sponsoring local events and offering financial literacy programs. By joining a credit union, you’re also contributing to the growth of your local community.
• Support for diversity and inclusion. According to the National Association of Federally-Insured Credit Unions, there are over three times more credit union minority depository institutions (MDIs) than bank MDIs and more than ten times as many female CEOs in credit unions than in traditional banks.
• Security. If you join a federally insured credit union, you’ll benefit from the credit union equivalent of FDIC insurance, also known as NCUA insurance. In the unlikely event that your credit union fails, the NCUA will protect up to $250,000 of qualifying deposits.
• Financial education. Credit unions often offer free financial education resources such as workshops and seminars that discuss topics like budgeting, saving, credit management or investing.

Why Join a Credit Union Instead of a Bank?

Here are a few reasons why you may want to consider joining a credit union instead of a traditional bank:

• Lower fees. Because credit unions are not-for-profit and do not have to pay dividends to shareholders, they can afford to charge fewer and lower fees for services like deposit accounts, withdrawals and transfers.
• Better interest rates. Credit unions serve their members and not their investors, so they tend to offer higher rates on deposits and lower rates on loans as compared to banks. It’s estimated that credit unions help members save over $12.6 billion each year by offering lower fees and better returns on deposits.
• Community focus. Credit unions are often community-oriented, which means they often provide more personalized services tailored to their members’ needs.
• Membership benefits. As a member of a credit union, you get access to a range of benefits not typically offered by traditional banks, which can include discounts on financial products and services, financial education resources and more lenient lending standards.

How To Choose a Credit Union

Once you’ve narrowed down your options, compare the following features to choose the most suitable credit union.

• Online and mobile banking. Compare each credit union’s online and mobile banking features, like mobile check deposit, online bill pay and the ability to transfer money between accounts.
• Branch and ATM locations. Ensure that the credit union you choose has enough branch and ATM locations to make managing your finances easy and accessible.
• Interest rates. Compare interest rates for earning and borrowing since they could affect your savings and loan repayments over time.
• Fees. Read fee schedules for different account types so you know what one-time and recurring fees you may be responsible for.
• Product variety. Find out what products are available with the credit union and whether they meet your financial needs.
• Customer service. Figure out the customer service team’s hours and the ways you can get in touch with them.