Credit unions are democratic financial institutions

Because credit unions observe the “one member, one vote” principle, they are democratic financial institutions.

They adhere to the following nine basic tenets:

Open and voluntary membership
Democratic organization and government
Non-discrimination
Service to members
Distribution to members
Building financial stability
Ongoing education
Cooperation among cooperatives
Social responsibility

What credit unions mean by social responsibility

A commitment to promote economic development in their communities.
An ongoing effort to foster healthy financial practices as well as to build money management skills among their members and their communities at large, by providing money management workshops through partnerships with other institutions.

What services do Credit Unions offer?

Like other depository institutions, credit unions offer various savings, checking and loan products.

They also provide money wiring, ATM cards and related financial services.

Like banks, they are closely regulated and the deposits of their members are insured up to $100,000 by the National Credit Union Administration.

How are Credit Unions different from banks?

Credit unions are cooperative financial institutions that are owned and governed by their members.
Their members share a “common bond,” either where they live, work, worship or associate.
They are tax-exempt.
They offer affordable services as they normally charge lower fees than banks and have minimum requirements for loan products.

What is special about NYCfNAC’s participating Credit Unions?

They are Community Development Credit Unions (CDCU). This is an official term given by the National Credit Union Administration. It means that these are CUs serving low-income communities. However, a person does not necessarily have to be a member of a low-income household to qualify for membership.

Rules of membership

There are several ways for a person to qualify for membership with a CDCU:

The person may live, work, study, or worship in the community served by the CDCU.
Or, the person may be a member of an association or organization based in the same community.
A person may be a resident of any of the city’s co-op buildings.
If the person runs a business and some of his/her clients either live or work in the credit union’s area.

These rules of membership are regulated by the National Credit Union Administration and are flexible enough to allow other ways for individuals to qualify, including relatives who are already members.

In general, Credit Unions tend to be flexible when applying membership rules and try their best to be able to offer memberships.

Forms of ID

As alternatives to a state issued ID, our participating Credit Unions accept the following forms of ID:

Passport
Medicaid card
Consular ID or “Matricula Consular”
Cedula de identidad
Voting card

Social Security Number

Not having a SSN may be a deterrent for people to approach Credit Unions. Aware of the obstacles faced by people in this situation, participating Credit Unions provide potential members with assistance in applying for an Income Tax Identification Number (ITIN). The ITIN is required by the IRS for opening any type of interest-bearing account of those individuals without a SSN. Although people are encouraged to apply for the ITIN and are given the W7 form for this purpose, the decision ultimately rests on the person. People who aren’t interested in applying for the ITIN have the possibility of opening a non-interest bearing account.