Guidelines for picking a Credit Union?

[Anonymous]

I am looking into joining a credit union. I've only ever used big-name banks before, so I'm not sure what the differences are between CUs and banks.

When shopping around for a CU, what sort of questions should I be asking to be able to properly compare my options? What things should I try to avoid?

Thanks!

[llecs]

CUs generally have lower fees and don't tend to nickle and dime you like some major banks do. Their customer service is typically much better than a bank. CUs typically have membership requirements to join and is usually based on demographics or employer groups or member groups. They are usually pretty good about clarifying who can join right on their website. You usually have to pay $$$ and they'll take that money and put it into a "share" account. In other words, you own a small percentage of that CU with your entry $$$ (usually $5 minimum). You then can open any account you want after joining based on approval, credit, etc. Most will pull your CR, though you can often use that same inquiry to apply for anything else (e.g. checking, savings, CC, whatever). Some CUs will check Chex. YMMV. IMO, when looking for a CU, I personally look at their CC limits (usually on their website) and look at their banking products and other benefits.

[Anonymous]

---

@llecs wrote:

CUs generally have lower fees and don't tend to nickle and dime you like some major banks do. Their customer service is typically much better than a bank. CUs typically have membership requirements to join and is usually based on demographics or employer groups or member groups. They are usually pretty good about clarifying who can join right on their website. You usually have to pay $$$ and they'll take that money and put it into a "share" account. In other words, you own a small percentage of that CU with your entry $$$ (usually $5 minimum). You then can open any account you want after joining based on approval, credit, etc. Most will pull your CR, though you can often use that same inquiry to apply for anything else (e.g. checking, savings, CC, whatever). Some CUs will check Chex. YMMV. IMO, when looking for a CU, I personally look at their CC limits (usually on their website) and look at their banking products and other benefits.

---

Are there any particular CUs known for not pulling credit first?

Thanks llecs! Makes much more sense now.

[Anonymous]

One difference to pay attention to if you have more than a couple dollars on deposit is that not all credit unions' deposits are federally insured.

All federally-chartered credit unions, and many/most state-chartered credit unions, are insured by the National Credit Union Administration (NCUA) -- which is the credit union equivalent of the FDIC.

Some state-chartered credit unions are not covered by NCUA insurance. I believe most of the remaining credit unions are insured by a private insurer called American Share Insurance. Not to make this more confusing, but American Share Insurance also provides additional insurace for deposits at NCUA member credit unions called  "Excess Share Insurance" -- that comes into effect after NCUA limits are exhausted.

[Anonymous]

---

@Anonymous wrote:

One difference to pay attention to if you have more than a couple dollars on deposit is that not all credit unions' deposits are federally insured.

All federally-chartered credit unions, and many/most state-chartered credit unions, are insured by the National Credit Union Administration (NCUA) -- which is the credit union equivalent of the FDIC.

Some state-chartered credit unions are not covered by NCUA insurance. I believe most of the remaining credit unions are insured by a private insurer called American Share Insurance. Not to make this more confusing, but American Share Insurance also provides additional insurace for deposits at NCUA member credit unions called  "Excess Share Insurance" -- that comes into effect after NCUA limits are exhausted.

---

That is very good to know!  It's one of those things that not only I, but probably many others, fail to notice.

[Anonymous]

---

@llecs wrote:

CUs generally have lower fees and don't tend to nickle and dime you like some major banks do. Their customer service is typically much better than a bank. CUs typically have membership requirements to join and is usually based on demographics or employer groups or member groups. They are usually pretty good about clarifying who can join right on their website. You usually have to pay $$$ and they'll take that money and put it into a "share" account. In other words, you own a small percentage of that CU with your entry $$$ (usually $5 minimum). You then can open any account you want after joining based on approval, credit, etc. Most will pull your CR, though you can often use that same inquiry to apply for anything else (e.g. checking, savings, CC, whatever). Some CUs will check Chex. YMMV. IMO, when looking for a CU, I personally look at their CC limits (usually on their website) and look at their banking products and other benefits.

---

+1

I also like to look at their online banking facilities if you think it's something that you will be using.  Especially useful if you will end up depositing checks is a remote capture service where you can scan your checks for deposit.  Also look for ATM coverage and fees.

My favorites: Alliant CU, Navy Federal & PenFed.

[Anonymous]

---

@Anonymous wrote:

+1

I also like to look at their online banking facilities if you think it's something that you will be using.  Especially useful if you will end up depositing checks is a remote capture service where you can scan your checks for deposit.  Also look for ATM coverage and fees.

My favorites: Alliant CU, Navy Federal & PenFed.

---

Thanks for the recommendations O6. I would give anything to be able to join Navy Fed -- heard so many good things about them! (Plus I <3 the AF.)  Oh well. I will look into the other ones.

[Anonymous]

I like Alliant as well.  We've been with them for two years.

Our local CU was just as generous on CC limits (they're both at $10K) and had lower APR's, and far better rates and much faster approvals on auto loans.  We looked at getting our home refi'd through Alliant, but found a much better deal through National (or whatever it was - now PNC).

We have another local CU that we've worked with for years, but their interest rates, constant hard pulls, denials on CC's, and unfavorable rates on our mortgage app has caused us to leave them behind.

CU's vary a lot; as do banks.  You're wise to look into what they can do for you.

[Anonymous]

+8

I just wanted to add that you might find these links helpful, in the Credit Union Database on the NCUA (National Credit Union Administration) website. There's a wealth of information that might help point you in the right direction.

[nomoore]

Being insured by the NCUA (governmenet) is not nessarily a great thing. The NCUA has to insure everyone, even the ones that are not financially secure. They can't pick and choose who they insure like American Share Insurance can. ASI reviews the financials for all the CUs they insure to make sure they are sound before they accept an app for insurance. So there is a higher chance that they are pretty financially secure. Also, a CU insured by ASI often covers more accounts and covers more money in those accounts. The NCUA covers $250,000 per "member". The CU I work for considered converting to ASI and if we had converted it would have provided the members with $xxx,xxx (sorry I don't remember the figures but it was at least $250,000) per account type that they had, thus $xxx,xxx for each type of checking, each type of savings, each type of money market, etc. If you are going to put a LOT of money in a CU then you might be better insured with a credit union that uses ASI.