For those of you that have credit unions, do they run credit checks when you go to open a savings (share) account? I have noticed the posts on this board regarding credit unions so I decided to check out which ones I would qualify for. Fortunately since I live outside of a major city there are many CU's in my area. Based on where I live I qualify for membership in 7 and qualify for one through work though their offices are out of state (they do the internet banking thing). Because of this, I can basically pick and chose by rate and by the product offerings that will work for me. My goal is to get established and obtain a secured loan (either CD or savings) and then in about six months pay down and refinance my vehicle to a lower rate. The one downfall I have heard is that not all CU's report loan activity to the CRA's. I have checked with three of the credit unions that I am most interested in and they do report all loan history to the credit bureaus. Right now, I am trying to be really careful about inquiries. I know some banks pull credit reports for account openings and others use either Chexsystems or Scan. So I am just curious. I really appreciate the posts about the benefits of being a member of a CU that others on the board have shared.
When I signed up for my credit union last month it said in their account opening stuff that they were going to run a credit report. They weren't going to use it as a condition of opening the account, they said they wanted to pre-qualify new members for loans. I really didn't want them to do that, but I didn't say anything. So far nothing has shown up on any of my reports.
IF A BANK OR SAVINGS AND LOAN OR CREDIT UNION WANTED TO "RUN" A CREDIT REPORT FOR A SAVINGS ACCOUNT OR CD...I WOULD TAKE MY MONEY AND RUN!!!!!
Associated & Federal CU ran a credit check on me when I opened my checking account, and again when I opened custodial savings accounts for my sons. Hard inquiries!
My credit union checked Chexsystems but didn't check my credit. It's a small one...I wouldn't even call it regional. It pulls Equifax CRs and they probably only report to them also. I'll have to ask that it be added to the other reports once it shows up on Equifax.
Forgive me if this is a stupid question, but what does chexsystems report? Do most banks run this report when a new account is opened?
ChexSystems is like a CRA except they report bounced checks and negative checking histories. Most CU's only run your credit report if they are attaching an overdraft or line of credit to your checking or savings account.
Dave, I read a couple of the applications that I printed out from the different CU websites. It does state that stuff about being allowed to run a credit report when opening accounts. Not quite at the loan stage, just want to open accounts to get established with the CU's. I can't understand why any CU would want to pre-qualify anyone for a loan if that is not the participant's intention. Maybe the person just would rather save their money and not get a loan. I guess they really want to increase their dividends to all in the CU by getting as much loan business as possible. It looks as though I may have to be careful and only join a couple of CU's. Hopefully to open an account, they won't run one, but then again, I could always ask. Thanks for the info. Deb
Chex Systems Thanks for the info Kristi I did some research. Anyone interested, they do have a website. A quick web search will give you the address. Several interesting things: they do sell you your report (costs 8 bucks). Negative info stays on for up to 5 years. And they are also a collection agency, and can use the information provided if you request a report be sent to you to collect, if you have any outstanding items that they are handling. That sucks, but at least they are up front about it.
