Allegis Extras

Consumer Education

 

Articles & Resources

Credit Union Difference

How To Get Your Free Credit Report
Fraud & Scam Information

What makes a credit union unique in the financial world?

A Credit Union Member Is More Than a Customer
If you are one of over 86 million Americans who are credit union members, you belong to an institution that is unique in the financial world.  While there are some similarities between credit unions and banks, certain features are unique to credit unions:

  • COOPERATIVE: No one person or organization owns a credit union.  It is owned and governed by its member-owners.  As a cooperative, it exists solely to provide members with affordable, convenient financial services.
  • NOT-FOR-PROFIT:  As member-owned cooperatives, credit union earnings, not held as reserves, are returned to members in the form of lower rates on loans, higher returns on savings, lower fees and better service.
  • VOLUNTEER DRIVEN: The active involvement of member-owners is the cornerstone of the credit union philosophy.  A credit union’s policy-making Board of Directors and many of its committees are made up of individuals elected by the members—virtually all of them unpaid.  Credit union member-owners have a direct say in the workings of their cooperative through democratic voice.

Tax Exempt for Good Reason
Congress has recognized the unique nature of credit unions since 1937, when it granted them tax-exempt status.  They knew then, as now, that credit unions exist primarily to serve members…and not to create a profit for stockholders.

This fact was affirmed recently by a Consumer Federation of America study.  Credit unions’ tax exemption contributes to their identity as non-profits and helps them to benefit society as a whole, according to the study conducted in 2003.  The CFA study shows that credit unions’ tax exemption is crucial to enabling them to target low-income constituencies for financial services—and to exist at all.

10 Reasons to Join a Credit Union

  1. Lower minimum balances
  2. Better rates of return on savings
  3. No or low-fee checking accounts and ATMs
  4. Lower interest rates on credit cards and loans
  5. Accounts are insured by the US government up to $100,000 per member
  6. Competitive mortgage rates and equity loans
  7. Credit counseling
  8. A voice in your credit union’s operations (member-owned)
  9. “Once a member, always a member” lifetime membership policy
  10. Community outreach and service

Information taken from The Credit Union Difference, by the National Association of Federal Credit Unions

Get your free credit report!

FACT Act Information

Michigan residents can request one free credit report per year from each of the three major credit reporters (Equifax, Experian, or TransUnion).  This new law offers an important step in safeguarding your identity.  Ordering your reports can be done in a few different ways:

*The official website, www.annualcreditreport.com , is the ONLY authorized online source to get a free credit report under federal law.  Some other sites claim to offer “free” credit reports, but may charge you for another product if you accept a “free” report.