Credit unions are becoming a go-to alternative to traditional banks, known for their member-first approach, lower fees, and community-driven ethos. But you might be wondering, “Can anyone join a credit union?” The answer is often yes—many credit unions are accessible to a wide audience and offer services that can compete with even the biggest banks.
Whether you’re having trouble opening a traditional bank account or just want a more personal banking experience, credit unions could be a great choice. In this article, we'll introduce you to five credit unions anyone can join, so you can decide if one might be right for you and see how simple it is to become a member.
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What is a credit union?
A credit union is a member-owned financial institution that operates on a not-for-profit basis. Unlike banks, which are owned by shareholders and focused on maximizing profits, credit unions are owned by their members. This means that any profits are typically returned to members through lower fees, better interest rates, and improved services.
Credit unions often take a community-driven approach, offering personalized service and prioritizing the financial well-being of their members. They provide a wide range of services, from checking and savings accounts to loans, credit cards, and even mortgages—often with more favorable terms than traditional banks.
Main benefits for members of a credit union
Being a member of a credit union comes with several benefits and financial advantages that can surpass those of traditional banks.
Lower fees
Account maintenance fees, overdraft fees, and ATM fees are often reduced or even eliminated. This can save you money over time, especially if you maintain multiple accounts or conduct frequent transactions.
Better interest rates
Credit unions often offer higher interest rates on savings accounts and lower rates on loans and credit cards. Because they are not-for-profit organizations, they can return profits to members in the form of better rates. This means you can earn more on your deposits and pay less on borrowed money.
Personalized service
Members are often treated more as individuals than just account numbers, and credit union staff are typically more willing to work with you on financial issues, offering advice and flexible solutions tailored to your needs.
Access to a variety of financial products
Including checking and savings accounts, credit cards, personal loans, auto loans, mortgages, and investment accounts. Credit unions also offer specialized services like financial counseling, which can help you manage your money more effectively.
Profit sharing
Since credit unions are owned by their members, any profits made are often returned to members in the form of dividends on savings accounts, lower loan rates, or improved services. This member-focused approach can lead to more favorable financial outcomes compared to traditional banks, where profits go to shareholders.
Cooperative network
If you join a credit union, you'll have access to a network of shared branches and ATMs, allowing you to conduct transactions at thousands of locations across the country. This cooperative network makes it convenient to manage your finances, even if your credit union doesn't have a branch nearby.
Lower loan requirements
Is it easier to get credit from a credit union? Yes, credit unions are typically more lenient when it comes to credit requirements and loan approvals. They often consider your overall financial situation and relationship with the credit union, making it easier for members with less-than-perfect credit to secure loans or other financial products.
Secure and stable
Credit unions are typically insured by the National Credit Union Administration (NCUA), which means your deposits are protected up to $250,000 per account. This provides the same level of security as the FDIC insurance offered by banks, ensuring your money is safe.
Additionally, as a member-owner, you have a say in how the credit union is run, contributing to a more community-oriented and member-focused financial experience.
Interested? You need to be a member of a credit union to get these benefits. So, how do you join a credit union? We’ll outline the process.
How to join a credit union: Is it easy to become a member?
Joining a credit union is usually straightforward. While some have membership requirements based on geographic location, employment by a particular company, or other affiliations, other credit unions are open to anyone.
These institutions understand the value of inclusivity and have designed membership criteria that are broad and accessible, making it possible for almost anyone to join. They often require a small deposit, often as low as $5, to open a savings account.
The process usually involves filling out an application, providing identification, and making a deposit. Once you're a member, you have access to all the credit union's services and products.
Some may require that you make a nominal donation to a partnering charity or join an affiliated organization, but these are minor steps that make it easy for almost anyone to become a member.
How to open a credit union account in simple steps
- Research credit unions and identify eligibility: Some credit unions have specific membership criteria based on where you live, where you work, or other affiliations. Look at the products and services offered by different credit unions. Consider factors like interest rates, fees, customer service, and accessibility to ensure the credit union meets your needs.
- Join an affiliated organization: If the credit union that you like requires you to join a related organization (e.g., a nonprofit or alumni group), complete this step. Typically, this involves a small donation.
- Gather necessary documents: Prepare a government-issued ID (e.g., driver’s license, passport). If applicable, gather any documentation that proves your eligibility, such as an employment ID or a utility bill showing your address. Also, you’ll need your SSN for most applications.
- Submit an application: You can open a credit union account online or in person at a branch. Choose the method that’s most convenient for you. Complete the membership application form with your personal information, including your name, address, contact details, and SSN. Carefully review the application for accuracy before submitting it.
- Make the initial deposit: You’ll need to make a payment to open your account. This deposit typically goes into a savings account and serves as your “share” in the credit union. You can usually fund your account via a transfer from another bank account, cash, or check.
- Wait for approval: The credit union will review your application and process your membership. This may take a few minutes to a few days, depending on the institution. Once approved, you’ll receive confirmation of your membership, along with your account details and membership number.
- Set up online banking: If your credit union offers online or mobile banking, set up your online access and open a credit union account. This typically involves creating a username and password and linking your email or phone number.
- Explore additional products and services: Consider opening a checking account, applying for a credit card, or taking advantage of other financial products offered by the credit union. If you’re interested in loans (e.g., auto, personal, mortgage), inquire about the application process now that you’re a member.
- Maintain your membership: Keep your account active to ensure you maintain the required minimum balance in your savings account.
What credit scores do credit unions require?
Credit unions tend to look at the whole picture rather than just a credit score. This means that even if your credit score is less than perfect, you may still qualify for loans and other financial products.
However, each credit union has its own criteria, so it's a good idea to inquire directly with the institution you're interested in joining. You can start with the following list of credit unions anyone can join. Whether you're looking for a basic checking account, a high-yield savings account, or a competitive loan, these five credit unions are excellent options to consider.
Top 5 easy credit unions to join
Here's a list of some of the best credit unions to join with open membership, making them accessible to a broad range of individuals:
Alliant Credit Union is one of the largest credit unions in the U.S., with over 600,000 members. Based in Chicago, Alliant is open to anyone who becomes a member of Foster Care to Success, a nonprofit organization supporting foster youth. This makes it one of the easiest credit unions to join.
This small step opens the door to a wide array of financial products, including high-yield savings accounts, competitive loans, and fee-free checking accounts. Alliant also offers a user-friendly online and mobile banking experience, making it easy to manage your finances from anywhere.
Connexus Credit Union serves over 400,000 members across the U.S. This is a credit union anyone can join by becoming a member of the Connexus Association with a one-time $5 donation.
Connexus offers some of the best rates on loans and savings products, making it an attractive option for those looking to maximize their financial potential. Their digital banking platform is robust, and they offer a range of services including free checking accounts, credit cards, mortgages, and personal loans.
Consumers Credit Union is a financial institution based in Illinois that offers open membership to anyone in the U.S. You can join by paying a one-time, non-refundable $5 fee to their sponsor, the Consumers Cooperative Association, and then deposit and maintain a minimum $5 in your Membership Share/Savings Account.
One of CCU’s standout offerings is its Rewards Checking account, which offers high-interest rates on balances up to $10,000, along with ATM fee reimbursements, provided certain monthly requirements are met (e.g., debit card usage, direct deposit).
PenFed Credit Union, short for Pentagon Federal Credit Union, is open to anyone by joining a military-affiliated association, such as the National Military Family Association or Voices for America’s Troops.
With more than two million members, PenFed offers a wide range of financial products, including low-rate credit cards, mortgages, and personal loans. PenFed is known for its excellent rates and extensive nationwide ATM network, making it a great option for those who value convenience and savings.
First Tech Federal Credit Union primarily serves technology-oriented companies, but anyone can join by becoming a member of the Computer History Museum or the Financial Fitness Association. First Tech offers a wide range of banking products, from checking and savings accounts to home and auto loans.
They’re known for their strong focus on digital banking and financial technology, making them a top choice for tech-savvy individuals who prefer managing their finances online.
FAQs
Can I open a credit union account online?
Yes, you can open a credit union account online. The process is usually straightforward and can often be completed in a matter of minutes. You'll typically need to provide some personal information, proof of identity, and a small deposit to open your account.
What is the hardest credit union to get?
Credit unions with strict membership requirements, such as those limited to specific employers or geographic areas, can be harder to join. For example, a credit union serving only the employees of a particular company or residents of a specific region might be challenging to join if you don't meet those criteria. However, the credit unions mentioned in this article have broad membership eligibility, making them accessible to most people.
Do credit unions do a hard credit check?
Whether a credit union performs a hard credit check depends on the service you're applying for. For example, opening a basic savings or checking account typically does not involve a hard credit check. However, if you're applying for a loan or credit card, the credit union may perform a hard inquiry to assess your creditworthiness. It's always a good idea to ask about the specific credit check policies of the credit union you're interested in joining.
What is the easiest credit union to get approved for?
The ease of getting approved for membership and financial products at a credit union can vary. However, Alliant Credit Union and Connexus Credit Union are often cited as having straightforward membership processes and more lenient approval criteria, making them easier to join and obtain credit from.
If you're tired of high fees and impersonal service at traditional banks, consider making the switch to a credit union—membership is likely easier than you think.