What is a 'Credit Union' and why should you care?

[_Charles_]

Definition:

credit union
A non-profit financial institution that is owned and operated entirely by its members. Credit unions provide financial services for their members, including savings and lending. Large organizations and companies may organize credit unions for their members and employees, respectively. To join a credit union, a person must ordinarily belong to a participating organization, such as a college alumni association or labor union. When a person deposits money in a credit union, he/she becomes a member of the union because the deposit is considered partial ownership in the credit union.

So why are credit unions important? Credit unions have positive and negative aspects.

Positive: Better rates and terms on most loan/cc/mortgage scenarios

Negative: Usually only a few locations, so not as 'convienent' as most regular banks.

CU's have membership guidelines that dictate that you be a member of a 'group'. BUt what if you are not part of that group? (i.e.: Macdill FCU originally required you to be a part of the military). Ask the rep what there membership guidelines are anyways, several have loosened requirements. Also ask your HR person at your place of employment is they partipate with any CU's. You only need around $20 to open a CU account. I find that I get better rates theough my CU than traditional banks, especially with used car loans.

Some Popular Bay Area CU's are:
Macdill FCU
Suncoast Schools FCU
Tampabay FCU
GTE FCU

Joining a CU does not mean you have to actually 'use' that account. I personally bank with a Traditional Bank (Free Checking), and use my CU for car loans.

Charles

[The Latin Spice]

+1 i agree with charles

i'm a member of the USF CU. (great for students)

[jabtay]

I am a member of GTE...I love it. I closed all of my other accounts out because of it. Also the way I got in was the loan on my truck. They gave me about a 6% APR less than anyone else. But there are draw backs. With the account I have I get one free visit to the teller a month, after that its 5 dollars a visit. But I dont go to the teller very often, I can bank either online, or via ATM. Also like RiceRocket said, they dont typically have convienient locations. But by far, they treat me better than SunTrust, Wachovia, or SouthTrust did.

[The Latin Spice]

my USFCU i can use it at any mcdonalds ATM or other CU ATM's.. i use the railroad CU down the street's ATM all the time. no charge.

[BLUE2KSS]

i regularly bank with wachovia, but have my car loan with Acheiva teachers credit union


5.25% interest on a 4 year loan fixed, first loan ive ever had

[moldyhands]

member with macdill federal credit union... best financial institution i've EVER dealt with.

[Just Dave]

I'm a member of GTE and Suncoast CU's. We use both for different things, but I think Suncoast is better overall. GTE has recently become more like a bank (like Jabtay mentioned above, their free checking is limited to online transactions only).

I got into GTE because my uncle works for TECO (they share some benefits) and family of members can join. I got into Suncoast when my wife taught at a private school and they offered membership. Try to get into all the CU's you can, and just start a very basic account. Years from now, if you're shopping for loans or investments, being a member at several institutions will only help you out.

[TIM TIM TIM]

I never knew there was a differance, my mom got me in GTE somehow :dunno: but I am glad I got there :)