Working with Credit Unions

1
Working with Credit Unions

• By Sara Sack, Ph.D.
• Assistive Technology for Kansans
• [phone]

2
Credit Unions are Financial Cooperatives

• Cooperatives are generally member-owned,
  professionally managed businesses.
• Members pool their resources and work together to
  gain control of their lives.
• Common examples include food coops, health
  care, childcare, and housing.

3
Credit Unions offer similar services as banks. . .

• Checking and savings accounts
• ATMs
• Travelers checks
• Credit and debit cards
• Home financing

4
Credit Unions differ from banks in the following
ways. . .

• Credit Unions have members, not customers.
• They are organized according to democratic
  principles.
• Credit Union officials are volunteers and by law
  cannot be paid for their services.

5

• Credit Unions generally hire managers and staff
  to conduct day-to-day operations, while policy
  responsibility is in the hands of the elected
  board of directors.
• No profit or stockholders -- all proceeds are
  redirected back to providing services to members.
  (Thus, interest rates are significantly lower.)
• Credit Unions typically serve people who have
  difficulty obtaining loans or services from other
  financial institutions.

6
Advantages of partnering with a Credit Union. . .

• Commitment to a consumer (member)-driven process.
• Comfortable serving persons of middle and low
  incomes.
• Commitment to being equal partners.
• Committed to flexible rates and terms -- and in
  general doing what is necessary to serve their
  members.

7
Disadvantages of partnering with a Credit Union.
. .

• Membership requirements may be a problem.
• We work with a Credit Union whose membership
  includes 1) all residents of Kansas, and 2) all
  individuals who work for one of the employee
  groups of which there are over 100.
• However, many Credit Union memberships are bound
  by geographic or employment boundaries.