What is a Credit Union?

Britney Balderas | Posted on October 15, 2020 |

Do you ever find yourself confused about what a credit union actually is? You’re not the only one! Many people feel the same way. At Eastex CU, we think it’s important to educate as many people as we can. With that said, we are here to answer all those question marks in your head!

What is a credit union?

Credit Unions are not-for-profit financial institutions owned by their members. The services we provide are similar to banks, but our profits go to our members, not stockholders. You must meet certain requirements to join a credit union. It’s usually based on where you live, work or worship, or through associations you’re involved with.

How do credit unions work?

Credit unions are for members, by members who vote and elect a volunteer board of directors. Our focus is to help members reach their financial goals. Because our profits come back to our members, we can offer better savings rates, lower loan rates and reduced fees. The unique thing about credit unions is that we are member-owned. When you deposit money in a credit union account, you become an owner-member of the credit union. You’re a customer and an owner. The money you and other members deposit is used to make loans to other credit union members.

What do credit unions offer?

Credit unions offer a more personalized service experience. The products and services that credit unions offer are very similar to what banks offer, with a little change in terminology. We aim to keep our fees low and may not have as many fees as banks. We also offer low interest rates on loans, so if you’re looking for a personal loan, car loan, or mortgage, make sure to compare the rates by Eastex Credit Union to make sure you’re getting the best deal.

Choose Eastex Credit Union!

Now that we’ve answered the main questions you probably had; you should feel a lot more confident about credit unions. If you’ve been thinking about joining one, consider choosing Eastex Credit Union. We love supporting the financial needs of our members! If you’re interested in becoming a member, check out how to join. It’s easy to apply!