Credit unions have long provided their members with unique advantages even major banks can’t compete with. Lower interest rates, reduced fees, and higher savings rates are all benefits credit union members can expect from joining the right organization. Credit unions are not-for- profit organizations and financial institutions that work similarly to banks, extend affordable credit, and make loans.
Below is a detailed guide to joining a credit union, their membership requirements, and the best choice of credit union to join in Amarillo, Texas.
What Are the Requirements for Joining a Credit Union?
Credit unions typically offer their members and potential members a detailed list of requirements for joining and opening new accounts. However, requirements can vary significantly from credit union to credit union.
Each union has a field of membership that decides whether or not you are able to join. People who share a common bond within these field of membership categories include:
- Employees of an organization – Some credit unions offer membership to all employees of certain organizations or businesses.
- Individuals who work in a specific industry – Workers in certain industries may be eligible for membership in a dedicated credit union.
- People who work, attend a school, or live in a specific county the union serves
Joining a credit union may cost you a membership fee between $5 and $25. However, once you join, you’ll have full access to the benefits offered by your credit union.
How to Join a Credit Union in Amarillo, Texas
If you’re someone who lives, works, or studies in Amarillo, Texas, you may be eligible to join a credit union.
The first step to joining a credit union in Amarillo, Texas or your local community is to find out the credit union membership requirements. Some people might tell you there is no way you will qualify to join a credit union, but these are usually merely misconceptions.
Even if you are in doubt about your eligibility to join a credit union, there are numerous options available to people of all credit and financial backgrounds. Federal credit unions are regulated and chartered by the National Credit Union Administration and can offer more security, but they typically have more stringent requirements. Alternatively, state-regulated unions may have more relaxed compliance laws and be easier to join.
You may have to provide a credit union with some personal information in order to open your first account.
This includes:
- Your contact details like your name, address, and phone number
- A government-issued picture ID or any other form of valid identification the credit union accepts
Once you know you meet the member qualification requirements and have the above-mentioned information ready, the next step is to purchase an interest in the credit union by buying a share. This is accomplished by filling out an application to open a deposit account—typically a savings account with a small initial deposit. The cost of the share ranges from $5 to $25, depending on the credit union’s membership guidelines.
It is worth noting that most credit unions call savings accounts “share accounts” because this is the account you opened to become a member. You are required at all times to leave the amount you deposited to purchase the share in the account.
Fortunately, you do not have to worry about accidentally withdrawing too much money, as the credit union deducts the cost of the share from your available balance. For example, if the cost of the share was $25, and you deposited $50 to open the share account, you will have $25 available to use. If you ever close your credit union account, you will get that share back.
Most credit unions offer low-fee or free checking accounts you can open at the same time as your share account. In addition, take the time to ask if you can link the two accounts together to provide automatic fund transfers in case you overdraw your checking account. If you intend on performing a wide range of transactions at the same time you open your share account, remember to bring along everything you need to help save you time.
What Happens if I Leave My Credit Union’s Field of Membership?
Even if your circumstances change and you leave the field of membership of your credit union, most unions offer membership for life. As long as you have joined legally, a change in your living situation or circumstances should not affect your membership status.
How Can I Open an Account or Apply for a New Product at a Credit Union?
After opening your share account, you are free to take advantage of all the financial services available at your local credit union. You can open a checking account, obtain an ATM or debit card, apply for a credit card or loan, join rewards programs, and make use of its online banking features. Just remember, each service and product could have its own specific requirements.
Each new product may also need a separate application. For example, if you want to apply for an auto loan, you might have to bring along pay stubs, a written estimate of the vehicle from the dealership, identification, and a list of personal references. You can call ahead to find out exactly what you need to open or obtain any accounts or products you desire.
Why Choose The People’s Federal Credit Union?
The People’s Federal Credit Union specializes in offering affordable, convenient personal finance products and solutions to individuals who live, work or worship in areas of Amarillo, Texas; Canyon, Texas; Hereford, Texas; and Childress, Texas. We offer our members competitive benefits, including:
- Low rates
- No minimums or service fees
- Local in-person support
- Online banking from a convenient mobile app
If a family member or you are interested in joining The People’s Federal Credit Union in Amarillo, Texas, contact us today at (806) 359-8571 to find out what is required to become a member and join our growing family!
