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What is a credit union and how does one work?

Imagine if the customers of a bank were also the owners of a bank. That's comparable to how a credit union operates. A credit union is a not-for-profit financial institution that operates solely for the benefit of its membership.

What is the difference between a bank and a credit union?

While credit unions and banks offer most of the same financial services, the most important difference is a profit motive. A bank operates with the motive to make a profit for its owners.

Are credit unions not-for-profit?

Yes! While non-profits are usually found in the IRS tax code 501(c)3, state-chartered credit unions are 501(c)14, and federal credit unions, like Logix, are 501(c)1. Find out more on the IRS website.

What are the benefits of a credit union?

We encourage you to ask any search engine this question: "Do credit unions offer better rates and fees than banks?" Don't take our word for it. Because credit unions do not need to make an extra profit to pay stockholders, they offer better rates and lower fees, on average, than banks. Here's what Investopedia says: "Credit unions tend to have lower interest rates for loans and lower fees."

How to get a loan from a credit union?

While all credit unions are different, the best way to get a loan from any credit union is to simply ask, whether in a branch, on the phone, or on their website. At Logix, we make it easy to apply for a loan online and you'll find the application at the top of each loan page. This process will include the additional benefit of helping you become a Logix member with access to all other benefits.