How Do You Apply for a Credit Union

To become a member of a credit union, it is not hard to apply. Credit unions thrive from having more memberships. They are actively looking for new members, and while each credit union has its acceptance standards, they also welcome applicants from all walks of life.

A credit union offers competitive loans. They are often provided on better or comparable terms to what you can find from a bank, online lender, and other finance companies. Low rates. Low fees. More favourable terms for borrowing. Also, getting approval for a loan through a credit union is generally easier once you’re a member.

Use this guide to learn how to apply for a credit union, whether online or in person.

Credit Unions vs Banks

A credit union is not a bank. The primary difference is in the ownership. A bank is a corporation. A credit union is a not-for-profit organization owned by its customers. Credit unions function by providing financial services to their members.

As they verify the legitimacy of their members, once one is a member, credit unions can generally offer one better loan rates than any bank can.

Find a Credit Union

Before applying to become a member, the first step is finding a credit union. Credit unions are often segregated by where their members live, the industries it serves, or other characteristics. There are credit unions, local and national, with differing membership criteria.

Personal vs Business

Credit unions may offer a mix of different accounts. Before applying, you must define whether you want a personal or business account.

Apply for a Joint Account

If you are applying for a joint account, the information outlined in this article will also be requested from the person making the joint application.

Bankruptcy Declarations

If you have declared bankruptcy in the last 5-7 years, you may not be eligible to apply for an account at a credit union.

Self-Employed

Self-employed individuals and independent contractors can apply for a credit union account, however, expect to have to put a little more work into justifying your income and confirming your employment.

For example, some credit unions require a self-employed person to have operated their business for at least two years before applying.

Age and Living

To apply to a credit union, you must be a permanent resident of the province you are applying to and be over 18.

Purpose of Your Account

You may be asked why you are requesting a credit union membership. Possible options include household income and expenses, retirement, travel, education, investment, and another purpose.

Government-Issued ID

To apply for any sort of finance account in Canada, you need some sort of government-issued identification. This can be a driver’s license, Canadian passport, or permanent Canadian resident card. The ID must not be expired.

A credit union application may take no longer than 15-20 minutes to complete, but it can be thorough. Expect to be asked to provide your Social Insurance Number, contact information, address, marital status, email address, and employment details.

Submitting Financial Information

A credit union may also require you to provide bank statements, credit statements, and utility bills for verification. You may also be asked to fully examine your income and assets.

Complete a Credit Check

Many credit unions will want to conduct a full credit check on any applicant, so be prepared to consent to a complete check.

Payment for a Member Share

You may be required to pay a member share to join a credit union. This is required for you to become a member-owner. After you pay this share, you have the right to vote on issues affecting the credit union and can submit your name to be voted onto the Board of Directors if you choose.

Approval Time

Each credit union may have its service standards, but many will respond within 2-3 business days. However, the response may be for an interview or a request for more information. If so, comply and follow the steps to complete the application.

After becoming a credit union member, you can apply for a loan. Speak with a loan officer to determine the next steps to get a loan approved. You may be required to provide additional support to qualify beyond your membership, including equity or a down payment, demonstration of creditworthiness, and income.

Every Credit Union Is Different

While most credit unions will require all these to apply for a credit union account, there may be slight variations depending on which credit union you are applying for.