By now you probably know that credit unions are some of the best places to save money as well as get loans. They offer a number of free services such as free checking, and have very competitive rates for their savings accounts as well as loans.
A number of people have passed on the chance to open an account with a credit union because they feel intimidated by the process. Unknown to them is that the process is quite easy.
Here are 3 tips on how to open an account.
First: You have to play the field
Registering for membership to a credit union is often the first step to joining the union. You cannot enjoy its benefits if you are not a member. It is easy though. Generally, members of a credit union usually have something in common. You may be eligible to join the union because your employer has a relationship with it, the credit union belongs to the community you live in or your occupation may automatically entitle you to membership. These are just some of the things that may make you eligible to join the credit union but keep in mind there are many more. In most cases you will have several choices to choose from so be sure to choose a credit union that you feel is offering products and services that suit you and at a rate that best suits you.
Second: Make a modest deposit
Once you have made the decision to join a particular credit union, the account opening process is very straight forward. It’s as simple as walking in and filling out an application. Just like with any other application for a financial account, you have to provide your details such as Tax ID No. or your Social Security No., physical address, a valid identification document and of course the reason you think you are eligible to join. Membership starts the moment you purchase shares in the union which is done by a modest deposit. It mostly ranges between $5 and $10. Be aware that some credit unions may decide to check your credit history before opening your account.
Third: Start using your account
We told you it was easy. You are now a member of the credit union and you now have access to all the services. If you are employed, it is much easier and convenient to have your employer directly deduct your union contributions from your paycheck. This means it goes directly hence lowering your chances of forgetting to make your deposits. You can also opt for electronic payments. Be sure to set up text or email alerts.
It is good to know that there are federally insured credit unions and these are the safest for you since your money is as safe as it would have been in a bank account.
What has been your experience with credit unions? We would love to hear from you.