What is a Credit Union?
A credit union is a cooperative owned by its members, not by outside investors or stockholders. Credit union members pool their resources to make loans and offer services to fellow members. Volunteer board members always make members' interests a top priority. And because it's a not-for-profit institution, a credit union returns all financial gains to its members in the form of improved rates on loans and investments.
It’s not a bank. Unlike a bank, a credit union is:
- Not open to everyone. Anyone can do business with a bank. Only members of a very specific group can belong to a credit union. Learn who can join.
- Not for profit. While banks are in business to earn profits for their stockholders, a credit union’s profits flow back to its members.
- Not controlled by just a few. A credit union operates democratically. Each member receives one vote in all important decisions.
- Not for homebuyers. The credit union will offer first mortgages only to its members, not REALTORS®' customers seeking home loans.
- Not owned by NAR. Once federally chartered and approved, the credit union will be a wholly independent legal entity owned by its members.
Why not do business with your local bank? The Internet-based REALTOR® Federal Credit Union won’t have any "brick and mortar" branches. Instead, a U.S.-based member service center will provide around-the-clock support via telephone, e-mail and fax, 365 days a year. Online services and a national, surcharge-free ATM network will offset the absence of physical locations. Learn more about why an online credit union makes sense.
