What you need to know before you join an oregon credit union

Posted by Sarah Addyson on November 25th, 2019

An oregon credit union is an institution that has its headquarters in Oregon. All its members have access to bank services. In general, they have better commissions and rates than big banks. There are many types of oregon credit unions. They vary from a community union which accepts members from certain regions or unions for certain professions, to group unions like corporate unions, where only members in a certain corporation can enter.

The first credit union in the world was founded in 1852 by Franz Hermann Schulze. From then, credit unions kept evolving and extending all over the world. Today they compete with banks and, on certain occasions, they get better results.

What are credit unions?

Credit unions are a type of financial institutions with exclusive membership. To use their services, you must become a member of the union. To do that you must accomplish their requirements. Different categories of unions have different requirements, like geographical position or financial status.

Credit unions are owned by their members. Their goal is to help the members, not to maximize their profit. They can’t have a negative balance so they must make at least enough profit to keep operating normally. Because of this they can use the money that would had gone to higher profits as an increase in interest rates at saving accounts and other deposit services and as a decrease in interest for loans and other such services.

A credit union can be as small as a handful of workers, with tens of members, or as big as tens of thousands of workers, with millions of members. Members choose the directors of the union, and, different from other commercial institutions, they have a vote per person regardless the sum of money invested.

Most of the services offered by a union are the same as banks. The main difference is the name. Their savings accounts are named share account, but the same as a bank you get an interest for that, a higher one due to the goal of the union.

Reasons to join an oregon credit union

- You are not a client of a union; you are a member. Your words count and you can vote the ones you want in the board of directors. You get dividends because all members own a little part of the union.

- Oregon credit unions are not corporations that try to maximize their profits. They only need a small profit to keep functioning. That’s why they pass the rest of the profits using higher interest for deposit account and lower interest for loans.

- The interest’s not the only way they save money for members. The fees are lower as well.

- Even with so many benefits, they offer better customer service. Because of the limitation on joining and the small number of employees and members they become quite close to each other, sometimes even friends, which improves the quality of their customer service.

- The focus of a credit union is the community, it must make its members happy. The amount of time and effort, that a bank allocates to maximizing profits, are instead allocated towards its member satisfaction.

Types of credit unions

- Federal credit unions are regulated and guaranteed by the National Credit Union Association

- Federally insured state credit unions are guaranteed by the National Credit Union Share Insurance Fund.

There are more categories apart of those two. For example, state-charted unions are guaranteed privately.

Depending on the members, oregon credit unions can be categorized in many types. Some examples would be:

- The ones that accept their members from a certain community, or certain geographical zone, are named community credit unions.

- Educational credit unions have members from universities and other educational institutions.

- Different corporations and organizations can create an oregon credit union for its members.

- There are unions for the local government, state government, and even the federal government.

- Industries, like woodcutting and engineering, have their own union where only certain professionals can join.

Most credit unions accept family members. So, if you have the opportunity to enter in a certain credit union that has a very good offer, you can share it with your family members. Unfortunately, you can’t share it with your friends if they can’t become members of the union.

Resource box: Before you enter an  oregon credit union , you should find out how many unions you qualify to enter. Then check the interest rates at all the  oregon credit unions  and choose the one that would make you more money.

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