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Frequently Asked Questions
How long does it take to approve a loan?
Generally, if all information is included, you should receive an answer in less
than 24 hours.
How long must I be a member before I can apply for a
loan?
You can apply for a loan through the credit union as soon as you establish your
membership.
What’s a Credit Union?
A credit union is a cooperative, not-for-profit financial institution organized
to promote thrift and provide credit to members. It is member-owned and controlled
through a board of directors elected by the membership. The board serves on a
volunteer basis and may hire a management team to run the credit union. The board
also establishes and revises policy, sets dividend and loan rates, and directs
certain operations. The result: members are provided with a safe, convenient place
to save and borrow at reasonable rates at an institution which exists to benefit
them, not to make a profit.
Who owns a credit union?
Most financial institutions are owned by stockholders, who own a part of the institution
and intend on making money from their investment. A credit union doesn't operate
in that manner. Rather, each credit union member owns one "share" of the organization.
The user of credit union services is also an owner, and is even entitled to vote
on important issues, such as the election of member representatives to serve on
the board of directors.
How did credit unions start?
The first credit union cooperatives started in Germany over a century ago. Today,
credit unions are found everywhere in the world. The credit union movement started
in this country in Manchester, New Hampshire. There, the St. Mary's Cooperative
Credit Association, a church-affiliated credit union, opened its doors in 1909.
Today, one in every three Americans is a credit union member.
What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage members
to save money. Another purpose is to offer loans to members. In fact, credit unions
have traditionally made loans to people of ordinary means. Credit unions can charge
lower rates for loans (as well as pay higher dividends on savings) because they
are nonprofit cooperatives. Rather than paying profits to stockholders, credit
unions return earnings to members in the form of dividends or improved services.
Are savings deposits insured?
Yes. All savings accounts are insured up to $100,000 by the NCUA, the National
Credit Union Administration, an agency of the federal government.
Who can join a credit union?
A credit union exists to serve a specific group of people, such as a group of
employees or the members of a professional or religious group. This is called
a "field of membership." The field of membership may include where they live,
where they work, or their membership in a social or economic group.
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