Credit unions - how do they work?

Question

Do you have to open a savings account with them to take out a loan from them?

Answer 1

yes, you have to have open savings account and most likely you have to establish relationship with them before you apply for a loan.
also depends on the loan you are looking for. If you are looking for an auto loan they work with the auto dealerships through their indirect lending department.
if it is a signature loan, line of credit what you are looking for you have to go there in person to open account, they will give you a loan with interest rate according to your current credit score.

Answer 2

Generally, they do work like a bank but they are more accomodating than banks. To do business with them, you will have to establish membership. This is usually your primary savings account. Most CU's require $5-$100 to open the account. You can apply for a loan without being a member, but will have to establish your account before a loan can be funded. You also must be eligible for membership. Some are tied to your work, area you live in, or if a relative is a member. Credit unions are generally easier to get loans from at good rates. They work harder to keep your business, and any profit they make gets used to improve service. They are a co-operative. When you become a member, you also become an owner.

Answer 3

Just like a bank. They have checking and savings accounts.