Myths Debunked: What to Know and How to Join a Credit Union

According to a report published by America’s Credit Union's Economics and Statistics Department in March 2024, credit unions in the US have 142.4 million members. However, this number does not mean that there aren't people with misperceptions that prevent them from understanding how to join a credit union and enjoying the benefits of becoming a member.

How to join a credit union - Clark County Credit Union in Las Vegas, NV

Here are some common myths about credit unions that you should be aware of if you’re deciding between a bank or credit union for your financial needs:

MYTH: Credit Unions Are Behind in Technology

A common misconception is that credit unions, as not-for-profit entities, are behind the banks in terms of technological innovation. The reality is many credit unions put money into technology to provide their members with digital tools and services and constantly seek ways to enhance their online and mobile banking experience.

MYTH: Credit Unions Offer Fewer Products and Services

Similar to banks, credit unions also offer a comprehensive range of financial products and services. Aside from deposit accounts, loans, and credit cards, credit unions also offer investment and retirement services to help secure and preserve their wealth. They’re also committed to educating their members and the community they serve about personal finances by providing a wide range of free financial resources to meet the diverse needs of their members, offering competitive rates, lower fees, and unmatched personalized service.

MYTH: Credit Unions Don’t Cater to Business Owners

Many credit unions offer a wide range of services tailored to businesses. These can include merchant services, equipment financing, SBA loans, and lines of credit. Since credit unions are not-for-profit, they generally charge lower or fewer fees which in turn helps business owners, especially those who are just starting out.

MYTH: Credit Unions Do Not Insure Funds Like a Bank

Some people think that credit unions are too small to offer insurance for their money. However, most deposits in credit unions are insured by the National Credit Union Administration (NCUA) or private insurance like America Share Insurance (ASI). These are both similar to Federal Deposit Insurance Corporation (FDIC) coverage that banks have to safeguard their funds and make them secure but they often offer more protection per account than the FIDC coverage.  

How To Join a Credit Union

  1. Determine Eligibility

Check membership requirements. Most eligibility requirements are based on where you live, work, or attend school. Make sure to visit your credit union’s website to know if you meet their criteria.

  1. Apply for Membership

Typically, you need a valid ID, proof of address, and your social security number. Some credit unions might require additional documentation based on their specific requirements.

  1. Open an Account

You can open an account by applying online on their website or by going to the credit union’s branch and completing the application form with your documents. You also need to make a first deposit into your new account, which usually confirms your membership and gives you a stake in the credit union.

Conclusion

Understanding the myths surrounding credit unions can help you make informed decisions about where to manage your finances. Since 1951, Clark County Credit Union (CCCU) has been helping members realize their financial goals and dreams. With 52,000 members growing strong, CCCU is here to help members in every stage of their life. To learn more about membership eligibility, products, and services, visit www.CCCULV.org or call 702-228-2228 for any questions or concerns.