Do Credit Unions Require Membership & How to Join

Credit unions are financial institutions distinct from traditional banks, operating with a unique member-owned structure. They are cooperative, not-for-profit entities that provide financial services to their members. This means credit unions exist to serve their members rather than to generate profits for external shareholders.

The Membership Requirement

Credit unions require membership, a defining characteristic that sets them apart from for-profit banks. This requirement stems from their cooperative structure, where every member is also an owner and has a say in the credit union’s operations. Unlike banks owned by stockholders, credit unions are owned and controlled by the individuals who use their services. This ownership model mandates that only eligible individuals, those within a defined “field of membership,” can join and access services. The field of membership is a legal definition outlining who is eligible to join a particular credit union, reflecting their commitment to serving a specific common bond.

Common Membership Eligibility Criteria

Credit unions define their field of membership through various common bonds, establishing who is eligible to join. One common criterion is geographic location, where eligibility is extended to individuals who live, work, worship, or attend school within a specific county, city, or designated community area. Another frequent basis for membership is employment or affiliation; this includes working for a specific employer, belonging to a particular union or professional association, or being a student or alumnus of a certain educational institution.

Many credit unions also extend eligibility through family relationships, allowing immediate family members such as spouses, children, siblings, parents, grandparents, and grandchildren of an existing member to join. Membership in specific clubs, churches, or other organizations can also qualify individuals. Prospective members should directly check a credit union’s specific requirements, as some may offer broad eligibility.

Steps to Join a Credit Union

Once eligibility is confirmed, joining a credit union involves a straightforward process. The initial step typically requires completing a membership application, which can often be done online, in person, or via mail. During the application, individuals must provide identification and personal information. Common identification requirements include a valid government-issued photo ID, such as a driver’s license or passport, along with a Social Security number or Individual Taxpayer Identification Number (ITIN). Proof of address, like a utility bill or bank statement, is also commonly requested.

A small initial deposit into a savings account is generally required to establish membership and purchase a “share” in the credit union. This initial deposit typically ranges from $5 to $25. After membership is established, individuals can open other accounts, such as checking accounts, or apply for various financial products like loans and credit cards. Many credit unions allow the entire process, from application to initial deposit, to be completed online.