2. Working with Credit Unions By: Sara Sack, Ph.D. Assistive Technology for Kansans (316) 421-8367

3. Credit Unions are Financial Cooperatives  Cooperatives are generally member-owned, professionally managed businesses.  Members pool their resources and work together to gain control of their lives.  Common examples include: food coops, health care, childcare, and housing.

4. Credit Unions offer similar services as banks...  Checking and savings accounts  ATM’s  Traveler’s checks  Credit and debit cards  Home financing

5. Credit Unions differ from banks in the following ways...  Credit Unions have members, not customers.  They are organized according to democratic principles.  Credit Union officials are volunteers and by law cannot be paid for their services.

6.  Credit Unions generally hire managers and staff to conduct day-to-day operations, while policy responsibility is in the hands of the elected board of directors.  No profit or stockholders -- all proceeds are redirected back to providing services to members. (Thus, interest rates are significantly lower.)  Credit Unions typically serve people who have difficulty obtaining loans or services from other financial institutions.

7. Advantages of partnering with a Credit Union...  Commitment to a consumer (member)- driven process.  Comfortable serving persons of middle and low incomes.  Commitment to being equal partners.  Committed to flexible rates and terms -- and in general doing what is necessary to serve their members.

8. Disadvantages of partnering with a Credit Union...  Membership requirements may be a problem.  We work with a Credit Union whose membership includes: 1) all residents of Kansas, and 2) all individuals who work for one of the employee groups of which there are over 100.  However, many Credit Union membership’s are bound by geographic or employment boundaries.