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. A Federal Credit Union, like Logix, is also regulated and supervised by the National Credit Union Administration (NCUA), which is similar to the Federal Deposit Insurance Corporation (FDIC) or traditional banks.

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. A credit union has no such motive because the people who use the financial services offered by a credit union, known as "members" instead of customers, are also the owners - each one with an owner vote about the direction of the credit union. In practice, the lack of a profit motive results in better rates and lower fees, on average, than at banks.

There are other differences, too. For example, a credit union has a defined body of membership, is regulated by the NCUA, and cannot sell stock to raise capital.

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.

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."

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. Credit union membership is required to obtain a loan. The best way to be approved for a loan, whether at a bank or credit union, is to ensure you have maintained a history of responsibly paying off loans on time and that you don't have too much debt compared to your ability to pay it off.

There are other factors to consider as well which are detailed on our Financial Wellness Resource page.

It's often true that refinancing an auto loan with a credit union like Logix can save you money on monthly payments or reduce your overall debt obligation. While all credit unions have different policies and procedures related to refinancing an auto loan, Logix makes it easy. Just visit our auto loan refinancing page and click "Apply Now." Logix membership is required.

Your deposits in a credit union are federally insured by the National Credit Union Share Insurance Fund, an arm of the NCUA. This insurance is similar to coverage offered by the FDIC, and both are backed by the full faith and credit of the United States government.

• Your combined savings, money market, and checking balances are insured up to $250,000.
• Your combined IRA balances are insured separately up to an additional $250,000.
  

You may obtain additional coverage on multiple accounts you have with Logix if you have different ownership interests or rights (and you properly complete account forms and applications).

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. Credit union membership is required to obtain a loan.

The best way to be approved for a loan, whether at a bank or credit union, is to ensure you have maintained a history of responsibly paying off loans on-time and that you don't have too much debt compared to your ability to pay it off. There are other factors to consider as well, and they are detailed on our Financial Wellness Resource page.

A share certificate at a credit union works similar to a certificate of deposit, or CD, at a bank.

A membership share account is the basic savings account at a credit union that is the ownership stake for every member. This savings account, which must contain a minimum of $5, guarantees members the voting rights and other benefits of credit union membership.

We're glad you asked! While one of the great things about credit unions is access to exclusive, member-only benefits, we want the process of becoming a member to be intuitive and easy. To see if you qualify for membership and all the benefits that come with it, please click here. You can also simply start a membership application or loan application and we'll guide you along.