Welcome to Service Credit Union - Service Federal Credit Union (2024)

FAQs

Does opening a credit union account help your credit? ›

Joining a credit union won't help build your credit score on its own, but it can be a good first step toward building your credit. Here are a few other ways that you can build your credit score: Use a credit card cosigner to increase your approval odds. Apply for a secured credit card, which requires making a deposit.

Credit unions are not-for-profit enterprises that enjoy tax-exempt status. A federal credit union (FCU) is regulated and supervised by the National Credit Union Association (NCUA). State credit unions instead adhere to state-specific regulations and guidelines, but not all states have such laws in place.

Credit Union Basics

Credit unions are not-for-profit organizations. While a credit union may earn profits, those profits are funneled back into business operations, paid to members as dividends or used to offer additional benefits for members.

The first $750 from a deposit of other checks (e.g. personal checks, business checks and payroll checks) will be available on the same day that we receive your deposit. The remaining funds will be available by the second business day after the date of your deposit.

You need a credit score of 700+ to get a credit card from most credit unions, though some credit unions have options available for people with bad credit or no credit history. There are credit union cards for every credit level, and some of the best credit union cards are only available to people with excellent credit.

The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.

Membership required. Credit unions require their customers to be members. Account holders must meet eligibility requirements to use the products and services.

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

Dividends. Your credit union may declare a dividend at the end of each year. As credit unions are not-for-profit, any income generated is returned to members in the form of a dividend, or may be used to improve and enhance services.

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Is there a benefit to having a credit union account? ›

The main benefits of a credit union compared to a bank are that credit unions tend to offer better rates, better customer service, and lower fees. However, banks may offer more branches and products than credit unions.

Lower fees: Because credit unions are not-for-profit, they typically charge lower fees than banks. Higher savings rates: On average, you'll find better interest rates at credit unions than banks, though some high-yield accounts at banks rank at the top of the industry.

Better rates.

while credit unions are not-for-profit organizations that reinvest their profits back into their organization. This leads to more affordable financing options and better member perks like rewards cards and low interest rates — not just for credit cards, but also for car loans and mortgages.