If you have spent your whole financial life handling your finances through
major banks, you may not know much about
credit unions. These entities serve as alternatives to banks, and they may come with
a number of benefits. Here are the answers to some of your frequently
asked questions about credit unions.
What Is a Credit Union?
Many people choose to work with credit unions rather than major banks.
Credit unions are financial institutions that offer a variety of banking
services, including car loans, mobile banking, and checking and savings
accounts. Credit unions primarily differ from banks in that they are not
for profit institutions. Because they are not geared towards earning a
profit, credit unions are often able to provide people with higher quality
service in the forms of fewer charges and loans at lower rates. Credit
unions are attractive to people who would prefer to bank with people who
represent their community rather than major chains. These institutions
have existed for more than a century and a half, although credit unions
in the U.S. only sprang up about a hundred years ago.
How Can I Join a Credit Union?
The first credit unions opened their doors to anyone who had five dollars.
In modern times there may be a few different requirements that you need
to meet before joining. These requirements vary from credit union to credit
union, but they typically have to do with the area where you reside or
the industry in which you work. Credit unions tend to help communities
come together by offering members’ families memberships as well.
How Are Credit Unions Regulated?
Like banks, credit unions are regulated. The entity that regulates credit
unions is a federal agency called the National Credit Union Administration.
Any amount of money that you deposit using a credit union will be insured
up to 250,000 dollars.
Do you still have questions about credit unions serving Idaho? Call
Westmark Credit Union at (208) 523-2722. We are happy to offer a variety of financial services,
including car loans and online banking. Feel free to visit our website
or stop by today for more information.