Credit unions offer similar services to national banks and savings & loan institutions. Their difference lies in who insures them (NCUA vs FDIC - but same $100k insurance per depositor), their locations (generally very limited), and their loan and account approval guidelines. If you are unable to open an account with a major bank, a credit union might be able to help you open an account. (I've always believed that national banks offer much better and greater access to your money than credit unions do.) But, credit unions offer great secondary account benefits - especially savings accounts. Generally, you have to qualify to be a member by being a part of a local union, or just by living in a certain area. Different credit unions have different membership requirements. Mostly all credit unions are "non-profit", which means that they work for the benefit of all their members, not an anonymous group of shareholders. They redistribute their profits into higher interest rates for savings accounts, and lower rates on loans. They are a very popular place to save money away right now. They can also help you build credit. Many may offer unsecured credit cards, personal loans, auto loans and even mortgages.
I'm not sure if it's just my experience but I have noticed that if you have a long history with a particular CU it's very easy to get a loan with them. We've been with NFCU for years, and even with lousy scores around 580 they gave us a personal loan at %5 APR so that we could pay off a cc with APR of $29.99. The lady that approved our loan did mention that credit reports and FICO are one, but that they heavily consider one's history with the CU, if the person has a cc or a loan with them and if those are being paid on time. We've had a VA mortgage, 2 car loans and credit cards with the CU and that's what they looked at when approving us. Our payment history with NFCU is impeccable, for obvious reasons. PawMix
