Six Degrees of Credit Union Membership
This post was originally published on 9/5/2019. Changes have been made to reflect new featured products.
What is a Credit Union?
In a nutshell, credit unions are not-for-profit financial cooperatives owned by members. Which typically means lower rates, practically no fees, and less red tape to go around.
Who Can Join the Credit Union?
If you’re familiar with the Six Degrees of Separation, (the idea that all people are six, or fewer, social connections away from each other) then you may be more connected to credit union membership than ever before.
Let’s take a look at one example of Six Degrees of Separation that would qualify six different connections for credit union membership:
Meet Kevin.
Kevin is the First Degree.
Kevin has been a member of our credit union for a long time. He qualified as a member because he’s lived in St. Louis all his life, right near one of our branches. His parents opened an account for him and he’s always enjoyed being a credit union member.
He knows that between our awesome, competitive rates for different products and our ‘People Helping People’ philosophy, that being a credit union member means being a part of something great.
This is Kevin’s wife, Becky.
She’s the Second Degree.
Becky and Kevin have always had separate accounts. While they still want to keep separate accounts, Becky wants to keep their finances with the same financial institution. (Becky has also been waiting for the right time to talk to Kevin about remodeling their kitchen, but knows it can be expensive.)
When Becky is asked by a friendly personal service counselor if she has any big goals or projects coming up, she mentions the kitchen remodel. Our counselor tells her about our Choice Home Equity loan that is a great fit—a home loan upfront with flexible terms, they can borrow up to 80% of the current equity in their home, and no annual fee or prepayment penalties.
Long story short… Becky talked to Kevin about the kitchen remodel and they’re starting to look at contractors!
This is Becky’s mom, Karen.
AKA the Third Degree.
Karen has lived near the credit union for a long time, but has always banked with “The Other Guys”. After a few weeks of hearing from Becky and Kevin how great the member service is, she’s ready to own a slice of the pie.
Because at the credit union, Karen is a shareholder, so the dividends go back to her and other members (unlike “The Other Guys”).
Karen has been enjoying her retirement, but she’s also thinking about how to best set up her family financially for the future. She was easily able to book a phone consultation online with our Together Investment and Retirement Services team and talk about all of the things on her mind. Our financial advisors gave her peace of mind and made her she had a solid plan that fit her and her family’s needs.
Meet Kevin’s “Work BFF”, Joe.
He’s the Fourth Degree.
Joe works with Kevin about 5 miles away from another credit union branch that Kevin stops by sometimes. Joe’s heard a lot about the credit union and how helpful the staff are when Kevin had a question about his mortgage with them, and Joe is seriously considering purchasing a home soon.
After Joe meets with one of the fantastic mortgage loan officers, he decides to apply for a home loan with the credit union and becomes a member in the process!
Joe also learns through this process that he qualifies for the First Time Home Buyer program, which gives him 100% financing, no private mortgage insurance (PMI), and no origination fees or closing costs—giving him more financial freedom and a great way to start the search for his dream home.
This is Kevin and Becky’s son, Sam.
The Fifth Degree.
Sam is seven years old. When Becky moved her accounts from “The Other Guy”, she also decided to check out the Junior Accounts at the credit union. Turns out, the Earn and Learn savings account has a better rate than their current Youth Savings Program.
At the credit union, we know how important it is to share healthy money habits early, so Sam and his parents can sit down once a week and talk about how to save, spend, and share money. And—when Sam gets a little bit older—we’ll have our easy-to-use Resource Center available to walk him through different topics that can help shape his outlook on personal finance, like Budgeting, Checking Accounts, and Digital Banking.
What about Kevin’s neighbor, Fred?
(Or his dog, Henry?) They’ll be the Sixth Degree.
Unfortunately, Henry the Dog doesn’t qualify for membership (what on Earth would he do with a debit card, anyway!), but Fred does! He lives next to Kevin, which makes him geographically qualified.
Actually… nearly every human in St. Louis can become a credit union member.
Fred moves his account over after talking to Kevin about the friendly service and fast loan processing he experienced. Now, Fred is setting up an automated Holiday Savings Account, so he can take Henry on a pet-friendly vacation soon!
