Credit unions refer to non-profit organizations formed to offer different services to members. These organizations have delivered an excellent alternative to traditional banks for more than a century and still counting. Joining a credit union is straightforward when you have the correct information and tips.
Therefore, this article will discuss the procedure of joining a credit union alongside other helpful details.
How Does a Credit Union Work?
It would be essential to understand how credit unions work before learning how you can become a member. First, credit unions are formed to provide various financial services to members, who are also its owners.
The services offered by most credit unions include savings accounts, financial counselling, loans, and credit and debit cards, among others. Some credit unions extend their services to local branches to save members from transportation costs and offer more personalized services.
Research various credit unions
Hundreds of credit unions in Canada offer excellent services and appear excellent in their performance. However, when you want to become a member, you should not approach any without thoroughly researching it.
An ideal credit union should match your financial goals and line of professional. Other factors to consider in your research include its reputation, ratings and reviews, location, membership requirements, and services offered.
Evaluate the requirements
The second step of becoming a credit union member is evaluating if you meet the stated requirements. After pointing out your best credit union, look deeper into its requirements alongside other personal considerations to determine if you’re still in for it.
It’s not advisable to join a credit union you don’t feel right about through its requirements or personal preferences.
Visit the credit union
After examining the membership requirements and qualifying at least 99%, you can visit or contact the credit union for further details. It’s advisable to visit the credit union facilities instead of reaching them via phone so you may acquire more information.
After that, you can now contact them via their customer service line or website in case of any questions or when in need of clarifications.
Apply as a member
Perhaps you’ve visited your preferred credit union, acquired all the relevant details, and still decided it’s the one for you. You can now apply as a member. Most credit unions require their new members to apply by filling out a comprehensive member application form which provides spaces for various details.
Some crucial information required from this application form includes the member’s official name, social security numbers, contact details, addresses, and next of kin. In some credit unions, the member may be required to accompany the application with proof of eligibility, such as a bank statement or employment details.
Minimum deposits and other financial activities
Many credit unions may require new members to make a first-time minimum deposit soon after application. This deposit is mainly made to your newly opened account to prove your readiness and willingness to join and pave the way for the rest of the process.
During this deposit, you are informed of your other financial obligations and rewards, either monthly or once every two months. Further details connected to the account are also clarified during the registration process.
Maturity period
(Un)fortunately, a new credit union member may not qualify for all the financial services soon after their application. They are required to wait for a stipulated period (waiting period), usually a month or two, until their qualification is approved. During this period, the credit union may still contact you for further information regarding your application.
After the stipulated period ends and the membership is approved, you can acquire credit union services such as savings, financial products, and checking accounts. Services like loans may wait longer until you’ve attained a particular contribution to qualify.
Before Becoming a Credit Union Member
Generally, credit unions offer several benefits to their members, including cooperative ownership, lower fees and loan rates, and higher interest rates on savings and dividends. By following the proper protocols, you will come up with a more informed decision about becoming a member of a particular credit union. Even better, you can engage a financial advisor or credit union expert.
There are a few factors one should consider when choosing to become a member of a specific credit union, including:
Performance
A good credit union is characterized by excellent performance in the market. You can be assured of excellent outcomes by joining such a credit union.
Location
An ideal credit union should be easily accessible from your permanent area of residence to ensure quick services and cut transport costs.
Dividends and interest rates
Although interest rates and dividends are highly competitive from one credit union to another, you should ensure you acquire the best return on your investment.
Costs and fees
You should evaluate the costs related to overdraft charges, account maintenance and withdrawals before settling for a particular credit union.
