Credit unions are financial companies that allow members of a common bond to come together in a quest to uplift each other financially. The financial companies are member-owned, meaning that every account holder has a say when it comes to the management of the institutions. Usually, the unions are localized, although we have some which operate countrywide. We shall look at the best credit union for business accounts later on.
Businesses too can join credit unions to help them advance financially. If, for example, you are a supermarket operator, you can find it very beneficial to join a union so that you can benefit from the various financial services. When you open an account with a credit union, the benefits are many compared to banks. You can get loans with lower interest rates and more extended repayment periods.
Furthermore, you also benefit from free teachings about ways to manage your money and investment tips for free. You cannot find that in banks for free since banks are profit-oriented. They aim to make as many profits as possible from their clients. For your understanding, credit unions do not focus so much on making profits. They aim to help their members to grow financially.
How to open a credit union account?
Account opening is usually a straightforward process once you identify the right financial institution that meets your needs. You should first ask why you want to open a union account. After establishing why you need one, you can check the one that will meet your goals.
Since the institutions allow people who share a common bond, you will need to look for the one that fits you. You can join a farmers’ union if you are a farmer, a doctors’ one if you are a doctor, a public service one if you are a public servant, etc. That is one of the differences between banks and credit unions. Banks allow anyone with the proper documents to open an account.
Once you get the right institution, you can look for the required documents. Like any other financial institution, you will need to provide various documents to get started. You require the following.
- Social Security Number
- An identification document
- A phone number
- Email address
- Physical address
The federal government requires every financial institution to obtain those details for anyone opening their account. That helps fight vices like terrorism, money laundering, and other evil businesses requiring anonymous individuals’ funding.
Once you have all that, then you can apply for an account. Nowadays, most financial companies allow you to open your account online. Therefore, you do not have to travel to the nearest branch to carry out the opening process.
The online account opening requires you to have devices such as smartphones, computers, or tablets to get started. You also require a secure internet connection to ensure that your data is safe during the account opening.
How do credit unions work?
If you have never used a credit union’s services, then you must be willing to know how it goes. The operation of a union is not that complicated. Once you open your account, the next thing you should do is deposit at least the required minimum amount in your account. Remember, you can have either a checking or a savings account.
The checking account allows you to keep the money for your everyday uses. The account comes with a debit card, just as it is with the ones from banks. You can withdraw money from your account at an ATM using your card. Again, you can withdraw money over the counter from your account.
The savings accounts allow you to earn interest rates compared to banks. Credit union savings account interest rates are usually higher than those of banks. If you are patient enough to keep funds in your account for several months or years, you will have earned a substantial amount of money by deciding to withdraw your savings.
Some institutions also allow you to earn interest on your checking account if you maintain a certain balance. The institutions also give credit cards to those eligible. You can use your card to borrow finances from the issuer when buying goods and services and paying bills when withdrawing at an ATM.
Can you get a credit union account with bad credit?
Credit unions are not like credit cards that check your FICO scores every time you apply for one. You can get a no-credit-check credit union account and start enjoying various services from the institution.
However, when you apply for a loan from the institution, the union must run a credit check to see if you qualify. The same applies to unsecured cards. They usually check your FICO scores to determine if you can repay a particular loan when running a credit check.
And by the way, if you do not have any borrowing history, you can gain some by getting a credit builder loan or a secured credit card for rebuilding credit. Credit scores usually range from 300 to 850, with 300 being the worst FICO score and 850 excellent.
Which are the 8 best credit union for business accounts?
If you are looking for the best union for your business, you have come to the right place. The following are the credit unions you can use for your business transaction activities. Have a look.
1) America First Credit Union
One of the best credit unions you can use for your small business is the America First Credit Union. The platform allows you to open a savings and a checking account to manage your business finances. You can get loans and lines of credit to run your business too.
One can get four business checking account options, including both a free account and an interest-bearing account, some of which can bear interest. Also, you get nine business-saving options to choose from.
2) Alliant Credit Union
Our second choice among the best unions for business is the Alliant Credit Union. The institution allows you to get a free checking account without any minimum balance or monthly service fee. The account can bear interest so that your money does not lie there idle.
You also get three IRA account options. The union also issues unsecured personal loans up to $50,000. Furthermore, the account has online and phone banking capabilities.
3) First Tech Federal Credit Union
First Tech Federal Credit Union is among the best credit unions in California. The union is a business-friendly institution with online and digital banking tools and gives you business checking and savings accounts with mini more fees.
You also get five rewards credit card options and additional personal loans. The union has over 40 physical branches and 30,000+ ATMs, so you can also get services from the union officials.
4) Navy Federal Credit Union
To qualify for NFCU membership, you should be an active service member, veteran, family member of a service officer, or a civilian who works for the Department of Defense. The union gives you three types of low-fee or no-fee business checking accounts.
You can get three types of business savings accounts with 1.35% APY, and you can get term loans of up to $25,000 and business lines of credit of up to $10,000.
5) Self-Help Credit Union
Another excellent credit union is the Self-Help Credit Union which gives you business savings account with zero monthly charges and a low minimum deposit of $5 when opening. You can also get outstanding business loans which include specialized loans.
The account also gives you term certificates for businesses, with APYs of up to 2.48% for a 60-month account. You can also enjoy online and mobile banking and save the energy of walking to a branch for various transactions.
6) Digital Federal Credit Union
The credit union gives you two business checking accounts and several business savings accounts with employees’ money market accounts, certificate accounts, and IRA options.
Again, you get two no-fee business credit cards to borrow funds when necessary. Furthermore, you can get a business line of credit of up to $3 million. Term loans can be up to $3 million.
7) Consumers Credit Union
The union gives you business savings account with no monthly fee nor minimum balance if you have a business checking account. Also, you get a business Money Market account which earns higher rates and requires a minimum of $500 to open.
The institution also gives you our business checking accounts with no or waivable fees. Again, you can get a point-of-sale system or software to accept payments for your business.
8) Boeing Employees Credit Union
The union gives you business term loans of up to $250,000. Also, you can get a business vehicle loan with low APRs for new vehicles. Moreover, you can get secured and unsecured business lines of credit and commercial real estate loans of up to $15 million. It is also one of the best credit unions for personal loans. The institution gives you online and mobile banking options.
Bottom line
A credit union refers to a member-owned financial institution. The members have a more significant say in how the institution should run which is contrary to banks that only allow a few people to make decisions.
Credit unions operate both online and at physical branches. They give you debit cards, credit cards, and personal loans. You must share a common bond or have a close family member in the union to join a credit union.
