Can Members Only Use One Credit Union or Are They Allowed to Join More?
As many people who have already read up on credit unions already know, these institutions used to have very restrictive membership guidelines and eligibility requirements. Basically, for most credit unions, you needed to have certain qualifications or be a part of a specific community in order to become a member. All that has changed today, and even though some unions still require a stricter adherence to certain rules and requirements for their members, the issue of becoming a member is less of a problem these days.
Of course, it’s true that each credit union will want to retain certain rules and regulations – not only when it comes to their internal operations, but also in how they deal with new arrivals. Because some unions are smaller, and require more security in order to retain stability, they may also need to screen their members more thoroughly. As a result, in order to become a member, you might need to meet certain eligibility criteria, including good credit score, as well as being employed in a certain type of industry and being part of a specific community, church or academic institution.
Unlike banks, credit unions are required to have an established set of guidelines for allowing new members to join. While some are more relaxed, others are quite strict, for instance, not allowing a prospective member to have more than one account – although some unions might allow one secondary account that is subordinate to the main one, but has considerable restrictions.
However, there are a few misconceptions about joining credit unions, especially in the fact that some say you can’t join one if you already have an account at another credit union. That is false in many cases, and as you will see with a good number of unions, they will allow up to three different accounts with other credit unions. This isn’t the same everywhere, and the union you want to join might well have stricter requirements; but you will often be able to find unions that are far more relaxed even within your local community.
As credit unions have a lot more to lose than banks, it’s understandable that they would impose such restrictions. Also, the restrictions in question are often associated more with the union’s desire to maintain a solid community, rather than their competition with rivaling unions. Unlike banks, these institutions are nonprofit, so they will not seek to compete as much, aside from their desire to attract new members in and of itself, which will usually lead to the relaxing of eligibility restrictions, rather than their increase.
If you want to join a credit union Littleton institution, your best choice is to actually contact them and inquire about their rules, or visit their official website to get that information more readily. Once you get informed about the restrictions imposed by several different unions operating in your area, you will have a clearer picture of which one is not only more appropriate for you to join, but also has better rates and options when it comes to their financial products.