How to Pick the Best Credit Union for You
The nonprofit, member-owned financial institutions often have lower rates on loans and credit cards, higher rates on savings and fewer fees for checking accounts. To some, they also seem friendlier.
"I enjoy the small, personal touch that they give," says Ron Lau. Lau is one of an estimated 100 million members of the nation's 6,557 credit unions that hold more than $1 trillion in assets.
With so many choices, how do you pick the credit union that's right for you?
Compare rates and fees, of course, but you should check out these criteria, too:
1. Can I join? Anybody can join a credit union, but not necessarily any credit union. Each credit union serves its "field of membership," a common bond among members, says myCreditUnion.gov, the website of the National Credit Union Administration.
Eligibility may be based on:
Employer: Many employers sponsor their own credit unions.
Location: Many credit unions serve anyone who lives, works, worships or attends school in an area.
Family: Most credit unions allow members' families to join. So if someone in your family is a member of a credit union, you may be eligible, too.
Group membership: Church, school, alumni, labor union, homeowners' association are among groups that may define a bond.
For example, BECU in Washington state was founded in 1935 by 18 Boeing employees, but now it is 900,000 members strong, has more than $13 billion in assets and is open to all state residents and students attending Washington colleges and universities.
