What is a Credit Union?
WHAT IS A CREDIT UNION? 
A credit union is a cooperative financial institution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates.
Credit unions, like other financial institutions, are closely regulated and operate in a very prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $100,000.
What makes a credit union different from a bank, or savings and loans? Like credit unions, these financial institutions accept deposits and make loans, but unlike credit unions, they are in business to make a profit. Banks, and savings and loans are owned by groups of stockholders whose interests include earning a healthy return on their investments.
HOW TO JOIN A CREDIT UNION
Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union's charter defines its "field of membership" which could be an employer, church, school or community. Anyone working for an employer that sponsors a credit union, for example, is eligible to join that credit union.
If you don't belong, here's how to find a credit union to join:
- Call your state league. A representative will tell you about credit unions in your area that you are eligible to join.
- Ask your boss. Your company may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to your credit union.
- Poll your family. Does your spouse's employer sponsor a credit union? Most credit unions allow credit union members' families to join. Each credit union, however, may define "family" differently. At some, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles and aunts.
- Quiz the neighbors. Some credit unions have a "community" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.
- Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union's field of membership. If not, at least you'll know what number to call to ask about membership eligibility.
- Call The Credit Union National Association. They can help you find a credit union. Call them at (800) 358-5710. You'll hear an electronic message that includes the name and telephone number of a person at the credit union league in your state who can help you find a credit union to join.
CREDIT UNION HISTORY
The credit union idea is a simple one: People should be able to pool their money and make loans to each other. It's an idea that evolved from cooperative activities in 19th century Europe. Since that time, the idea's guiding principles have remained the same: (1) Only people who are credit union members should borrow there; (2) loans are made for "prudent and productive" purposes; (3) a person's desire to repay (character) is considered more important than the ability (income) to repay. Members are, after all, borrowing their own money and that of their friends. These principles still govern most of the world's credit unions.
LT & C Credit Union
1608 S 4th Street
Leavenworth, KS 66048
913-651-6555
ltccu@att.net
http://www.myspace.com/wwwltccucom
(clicking on url will redirect you away from ltccu website)
Monday - Thursday 10:30 a.m. - 5:00 p.m.
Friday 10:30 a.m. - 6:00 p.m.
lnk