How to Reap the Benefits of Your School's Credit Union

Credit unions have advantages that other financial institutions such as banks cannot match. The reason is that credit unions are run as non-profit companies. They are, in essence, owned by the people who have accounts there. Employers such as schools recognize that credit unions can be beneficial for their employees and sometimes offer membership in the school's credit union as a perk. Although membership in a credit union is a benefit, you cannot reap those benefits unless you use the credit union in your financial planning and purchases made through credit transactions. Reaping the benefits of school credit unions is easy with a few simple steps.

Instructions

1

Open a savings or checking account. Opening an account allows you to establish your membership in the credit union, which will allows you take advantage of its lower rates.

2

Check with the credit union the next time you are ready to purchase an automobile. Because credit unions are not beholden to stock holders, they can offer lower rates for large purchases such as cars.

3

Apply for a credit card from your school's credit union. For the same reason credit unions can offer lower rates on car loans, they can offer lower rates on credit cards. This is helpful especially if you're young and find it difficult to obtain credit. Credit unions are designed to meet the credit needs of their members, even if they're young and haven't had a chance to establish credit.

4

Convert your traditional financial account with a bank to one with a credit union. Credit unions offer checking accounts and most of the same services offered by a bank, but the credit union banking fees are generally lower.

5

Read the literature offered by your school's credit union. Because credit unions are driven by its memberships, they typically have as a goal the financial well-being of the members. They offer literature and other educational materials that can help increase your financial IQ.