Compare Credit Unions, Get Ratings & Reviews

If you need to set up a deposit account or take out a loan, you’ll need to decide whether to use a bank or a credit union. Both institutions provide consumers with deposit accounts and loans, among other services. And with few exceptions, both banks and credit unions provide federal insurance coverage for deposit accounts up to $250,000 per depositor, per institution.

On the surface, banks and credit unions look pretty similar. So what are the major differences?

Mission: Banks are profit-making enterprises. Just like any other corporation, banks use those profits to strengthen the company, provide bonuses to executives, and pay dividends to the shareholders. Credit unions, on the other hand, are not-for-profit organizations. The focus of a credit union is not on maximizing profit, but on supporting the community by providing members with the best possible products and services at the lowest possible cost. Any surplus income earned is returned to the members in the form of dividends.
Ownership: Banks are owned by shareholders, while credit unions are member-owned. Credit union membership is made up of the credit union’s own depositors and borrowers, and is based on a community of some type, such as a common location, profession, church, club, or military affiliation.
Eligibility: Banks are open to all customers, while credit unions are chartered to serve particular communities, and are required by law to restrict membership to those communities.

Questions & Answers

Comparing credit unions can be tough. But you've got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not the financial institution's responsibility to ensure all posts and questions are answered.

Upvotes

What are the best credit unions for credit-builder loans?

Grace Enfield, Content Writer

The best credit unions for credit-builder loans are Alltru Credit Union and Digital Federal Credit Union because of their low APRs and affordable monthly payments. Alltru offers 50% of all the interest paid on the loan back, while an account through Digital Federal earns dividends. You must be a member to get a credit-builder loan from either of these credit unions, though.

Best Credit Unions for Credit-Builder Loans

Alltru Credit Union

Alltru offers 12-month credit-builder loans of $300 to $1,000 with an APR of 12%. If you make all of your payments on time, the company will refund you half of the interest you paid over the life of the loan.

To get a credit builder loan through Alltru, you must become a member. Memberships are open to people who live in St. Louis, St. Louis County or St. Charles County.

Digital Federal Credit Union

Digital Federal offers 12 to 24-month credit-builder loans of $500 to $3,000 with a fixed APR of 5%. With a credit-builder loan from Digital Federal, the money in your savings account will earn dividends.

Anyone can apply online to become a member of the credit union.

Randolph-Brooks Federal Credit Union (RBFCU)

RBFCU offers credit-builder loans of $300 to $2,500 with loan terms from 6 to 36 months. There are no fees associated with an RBFCU credit-builder loan, but you will have to pay interest on the loan. You'll receive a portion of that interest back at the end of the loan.

You can apply online to become a member of RBFCU, but you must live in Texas to become a member.

Final Thoughts

If you're having a hard time getting approved for a credit-builder loan from a credit union, you can also try to get credit-builder loans from banks or online lenders. Plus, good alternatives to credit-builder loans include no credit check personal loans and credit cards for people with no credit. These borrowing options do not require a credit history, and they can help you build credit.

Upvotes

What credit unions are there in Phoenix?

Alexandra Barring, Banking Moderator

There are several credit unions in Phoenix. Some of them include SunWest Credit Union, Shamrock Foods Federal Credit Union, Alhambra Credit Union, Southwest Health Care Credit Union and Deer Valley Credit Union. You can find a list of Phoenix credit unions here.

Upvotes

Can you get a credit card through a credit union?

Adam McCann, Financial Writer

Yes, you can get a credit card through a credit union, but you need to be a member of that credit union first. Membership eligibility requirements vary by credit union, but the criteria are usually related to geographic location, employer affiliations, or membership in certain organizations or associations. Some credit unions are open to virtually anyone, though.

Once you become a member of the credit union, you can apply for one of its credit...

Upvotes

How can I get a loan from a credit union?

Adam McCann, Financial Writer

To get a loan from a credit union, you must first determine which credit unions you're eligible to join. Unlike with a bank or an online lender, you have to be a member of a credit union to get any of their financial products, including personal loans. You may qualify by living or working in a certain area, by having a relative who is a member, or by making a small one-time donation to an...

Upvote

Are there credit union personal loans for non-members?

Adam McCann, Financial Writer

There's no such thing as credit union personal loans for non-members. You have to be a member of a credit union to apply for one of its personal loans, credit cards or other financial products. Fortunately, there are a number of credit unions that are open to anyone, no matter where you live. You still have to become a member to take out a personal loan from them. But becoming a member may be as...

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How Are Credit Unions Different from Banks?

Questions & Answers

What are the best credit unions for credit-builder loans?

What credit unions are there in Phoenix?

Can you get a credit card through a credit union?

How can I get a loan from a credit union?

Are there credit union personal loans for non-members?

Ask the Experts

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