A credit union is a member-owned, nonprofit cooperative financial institution formed for the purpose of encouraging savings by offering a fair return, using those savings to make loans at competitively low interest rates to members, and providing other financial services. Members are united by a common bond of association and democratically operate the credit union under state or federal regulation. There are more than 12,000 credit unions in the United States with nearly 72 million credit union members nationwide.

Why join a Credit Uninon?
Credit unions exist only to serve their member-owners. Consumer surveys repeatedly show members are more satisfied with the service they receive from their credit union than are customers of banks or savings and loans. Credit unions are democratic organizations directed by their members. Members have the power to direct credit union policy and, if dissatisfied, can even replace the board of directors. Credit unions practice a one-member, one-vote philosophy for all elections, unlike for-profit financial institutions whose stockholders vote according to the number of shares of stock they own. Their nonprofit status enables credit unions to operate at a lower cost than many for-profit institutions and helps them to offer competitive loan and savings rates. For instance, credit unions usually charge lower interest on credit cards than most other providers, and many credit unions charge no annual card fee.

Banks vs. Credit Unions

Credit unions charge lower fees than banks on checking accounts and credit cards. For example:

• For minimum balances, the average credit union requires $446 to avoid a monthly fee; banks require $537.
• For interest checking, the average credit union charges $2.05; banks average $7.42.
• For regular checking, the average credit union charges $4.28; banks average $6.72.
• For late credit payments, the average credit union charges $7.88; banks average $27.45.

How to join a Credit Uninon?
Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union's charter defines its "field of membership" which could be an employer, church, school, or community. Anyone working for an employer that sponsors a credit union, for example, is eligible to join that credit union.

If you don't belong, here's how to find a credit union to join:

• Poll your family. Does your spouse's employer sponsor a credit union? Most credit unions allow credit union members' families to join. Each credit union, however, may define "family" differently. At some, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles, and aunts.
• Ask your boss. Your company may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to your credit union.
• Quiz the neighbors.Some credit unions have a "community" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.
• Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union's field of membership. If not, at least you'll know what number to call to ask about membership eligibility.
• Call your state league. In Maine, you can call toll free (800) 442-6715 (in-state only), (800) 341-0180 (outside of Maine) and you will speak to someone who can help you. Or, call The Credit Union National Association to help you find a credit union at (800) 358-5710. You'll hear an electronic message that includes the name and telephone number of a person at the credit union league in your state who can help you find a credit union to join.