A credit union is a financial institution that is not profit-oriented and is member-owned. It is formed by members who have a common bond such as the same kind of business, same religion, same residential area, same employer, or any other kind of bond. Some credit unions usually welcome anybody who can abide by the terms and conditions. For now, I want to show you the no credit check credit union accounts you can open today.
When talking about a no credit check credit union, we mean the kinds of credit unions that do not make a hard inquiry on your credit scores. Credit scores show your creditworthiness. In simple terms, the scores show your ability to pay a loan within the given time. If you have not been paying loans on time or defaulted on some loans from financial institutions, you probably have poor credit scores. The scores range from 300-850, where 300 is very poor while 850 is excellent.
Some credit unions require good credit scores because they want to be sure that you will be able to pay once you get a loan from them. Most people join credit unions intending to get a loan someday. Joining a credit union is usually free. You may require to pay a deposit amount, but that is usually a small amount of money. Furthermore, the deposit is still your money as you will be able to access it in the future.
How different is a credit union from a bank?
Most people wonder about the difference between banks and credit unions. Well, credit unions and banks are all financial institutions that allow you to deposit and use money. You can open a savings or a checking account in any of the two. Moreover, both give credit and debit cards that you can use for various kinds of transactions.
However, some differences arise between the two exist. First of all, credit unions are not profit-oriented. They aim to uplift the members financially. Therefore, they have fewer fees compared to banks. Again, their interest rates on loans are usually low. On the other hand, banks are profit-oriented.
That means they operate to make money. That is why banks charge so many fees and high interest rates on loans to make as much money as possible. Banks have monthly fees, maintenance fees, annual fees, inactivity fees, and so on. That is not popular with credit unions.
Secondly, credit unions are member-owned. That means members run the institutions the way they want. Banks are businesses that belong to individual business people or a group of individuals. Others are state-owned and run by the government.
Additionally, credit unions are for members with a common bond. You can find a credit union for farmers, another one for teachers, police, church members, and so on. On the other hand, banks are for anybody who would like to join so long as one has the correct details.
The 10 best no credit check credit union accounts
It is the Alliant best credit union to open a checking and savings account. It has 0.25% APY.
If you want a credit union for checking accounts, then Connexus will be the best option. It has a 1.75% APY on checking balances up to $25,000.
3) First Tech
First Tech will give you the best member experience. The credit union has an 0.50% APY on checking balances of up to $10,000.
4) The Golden 1
If you are a college student or a teen in particular, then this is the credit union you can open. The The Golden1 offers free checking and savings accounts for its members.
If you are looking for a credit union with high APY, then Consumers is the best credit union for you since it has up to 4.09% APY on checking balances of up to $10,000.
6) America First Credit Union
The America First Cr has no monthly fees on regular checking accounts. The checking account is free checking and earns interest.
7) Boeing Employees Credit Union
The Boeing Employees Credit Union has High APY on balances below $500. It has 30,000 fee-free ATMs across the country.
8) SchoolsFirst Credit Union
The SchoolsFirst Credit Union has no monthly fees, and the accounts are youth-friendly. It has over 28,000 fee-free ATMs across the country where you can access cash from your account.
9) State Employees Credit Union
If you want a credit union with competitive certificate rates, then the State Employees Credit Union will work best for you. It has up to 0.55% APY and has an enormous branch network in North Carolina.
10) Suncoast Credit Union
When you open an account with Suncoast Credit Union, you will be able to earn interest on the checking account with no monthly fees.
How do I open a credit union?
Opening a credit union is easy. The requirements of opening a credit union are the same as those of banks, although there are some additional requirements for a credit union.
First of all, you must be 18 years of age unless you are opening the account under someone else who may be your parent or guardian. The following are the things you require to open a credit union account.
- Social Security Number (SSN)
- Identification documents such as an ID, passport, driver’s license, or a government ID
- Physical address
- Email address
- Phone number
Once you have gathered the general requirements of opening a credit union, research the available credit unions within your area. All you need to do is do a simple Google search on the available credit unions in your vicinity. For example, if you reside in the State of California, you can search; the best credit unions in California. You will get numerous results that you can analyze one by one.
You must share a common bond with the credit union members of the one you choose to join. Afterward, you can check the way to submit your application. Most credit unions allow you to apply online using your smartphone or computer. You must therefore upload all the documents as precisely as possible.
For your physical address proof, you may need to upload one of your monthly bill receipts for either water, electricity, internet, or any other relevant bill payment receipt.
You may also need to visit a physical branch to open a credit union account in person. You will carry all the required documents. At the branch, you will fill forms and sign. You may also need to submit your fingerprints for further identification. Again, some financial institutions require you to bring a passport size photo to attach to your detail form.
Once you are finished, you will get a notification that your account is ready on your phone number or email address. You can then make your first deposit as per the terms and conditions. You can then start using your account for various kinds of transactions.
What are the factors to check when opening a credit union account?
If you want to open a credit union account, there are several factors you should consider. They include the following.
i) Common bond
As I mentioned earlier, credit unions require you to have a common bond with the other members. A common bond, just as I mentioned above, refers to sharing something in common such as religion, occupation, residence, and so on.
ii) Opening deposit
Most credit unions need you to have an opening deposit when joining them. An opening deposit is an initial amount you should deposit once you open an account. You can check an account that you can afford the opening deposit. Some credit union accounts have high initial deposits while others have low.
iii) Interest rates
Credit unions have low-interest rates when you take loans. However, the interest rates are not uniform for all credit unions; some have low rates while others have higher ones.
It is therefore essential to check on the credit union with low-interest rates on their loans. That way, you will be able to save significant amounts of money on your loans.
iv) Online account
Nowadays, financial institutions have advanced in technology in that you can open and manage your account online. When looking for a credit union account, get that which allows you to manage your account online.
That way, one will not waste your time lining up at the nearest branch to withdraw or deposit money. You can operate a credit or bank account over the web or a unique application.
How do credit unions operate?
Just to remind you, credit unions do not operate to make profits. They are there to uplift each member financially. When you open an account, you have to make an initial deposit. The money is yours as nobody can take them.
Afterward, you will be contributing a certain amount of money per month according to the laid down terms and conditions. The following is a detailed explanation of how a credit union account works.
1. Depositing money
You can set up a direct deposit to receive money from your employer in your credit union account every month if you are employed. Direct deposit is one of the best ways to receive money in your account at a low cost. Furthermore, you can set up a direct deposit to receive government benefits.
2. Pay bills
As long as you have sufficient balance in your account, credit unions allow you to pay your bills online. You can pay your electricity, water, internet, and any other kind of bill using your account online. When you transact, all the transaction history remains intact in your account, and you can come anytime to refer to any of them.
3. Check deposit
You can deposit your checks using your online account. In most cases, you must take photos of your check and upload them to your account via the credit union’s app. Online check deposit saves you time that you could have wasted if you went to the queue at a bank to deposit it. Check deposit is one way to add money to your credit union account.
4. Offers a debit card
With a credit union account, you can get a debit card to use with your checking account. A credit union allows you to buy goods and services online. You can also buy goods and services at a physical store and maybe get cashback, points, or any other kind of reward. A debit card also helps you to withdraw money from an ATM. That way, you can get cash from your account 24/7.
5. Send and receive money
A credit union checking account allows you to send money to others. You can send money to other credit union account holders or other financial institutions such as banks and mobile wallets. To send money to the same credit union account, you only require the recipient’s account number and maybe their full names.
When sending money to another credit union or bank, you require the account and routing number of the concerned institution. Likewise, you can share your credit union account numbers plus the routing number where necessary to receive money from others.
6. Gives loans and credit cards
A credit union also gives you loans depending on your credit scores. The best credit unions for personal loans have low-interest rates and long repayment periods. Therefore, you can take huge loans and do some developments. Credit unions also issue credit cards to borrow when you do not have money in your account.
Credit cards are very crucial when it comes to building your credit scores. You can grow your scores to greater heights when you pay your credit union loans on time, when you spend at most 30% of your credit card limit every month, and when you utilize your credit card now and then.
7. Alerts and notifications
A credit union account also allows you to set up alerts always to get notifications about any kind of transaction. That way, you can quickly know if there is any suspicious activity with your account. You can also receive your monthly statement right in your email.
Interestingly, your online credit union account allows you to check your credit union balance online. That way, you will not need to call or visit a branch to see your balance.
How are credit unions similar to banks?
There are various ways in which credit unions are similar to banks. First of all, credit unions require your Social Security Number, an identification document, phone number, email address, and physical address. Banks also require the same information.
Secondly, banks allow you to open checking and savings accounts. Credit unions also allow you to open savings and checking accounts. Both kinds of institutions may also allow you to open brokerage accounts.
Moreover, banks and credit unions issue debit and credit cards. The two types of cards allow you to transact online and at physical stores. You can also use any of the cards to access money from an ATM.
Lastly, banks and credit unions charge interest rates on loans. Even though credit unions charge a small interest rate, both strive to make some money out of loans taken.
Credit unions are member-owned financial institutions. Additionally, the members share a common bond. The institutions charge low interest rates since they are not profit-oriented. Credit unions are almost similar to bank accounts, although there are significant differences between the two. Credit unions issue debit cards as well as credit cards. You can open a credit union account either online or at a physical branch.