Checking Accounts - Patriot Federal Credit Union (2024)

FAQs

Do credit unions check your credit score to open a checking account? ›

Banks and credit unions want to know their new customers can manage their checking and savings accounts responsibly. However, they won't check your credit report or score, so you won't need an established credit history to qualify for a bank account.

Credit unions refer to checking accounts as share draft accounts. While it might not affect how you use the account, share draft accounts are a form of ownership. This means you are a partial owner of the credit union, while checking account owners are customers of banks.

Above all, one of the most acclaimed credit union advantages is that all deposits remain secured. You won't lose your hard-earned money because the National Credit Union Association (NCUA) backs credit union deposits. Each depositor's account is insured for up to $250,000.

Fund the Account

Once you deposit money into the account, you can start using it immediately. Fortunately, opening a credit union checking account typically requires a small deposit of between $5 and $25. You can fund your account using cash, check, debit card, or other electronic transfer.

Know your banking history

You failed to pay insufficient funds fees after overdrawing your account. You have a history of writing bad checks to merchants. You've committed fraud.

Such negative activities that show up on your report and hurt your approval chances include bouncing checks, leaving an overdraft balance unpaid, abusing a debit card or applying for too many accounts in a short period of time, according to credit bureau Experian.

Credit unions tend to offer lower rates and fees as well as more personalized customer service.

Banks are typically for-profit entities owned by shareholders who expect to earn dividends. Credit unions, on the other hand, are not-for-profit, member-owned cooperatives that are committed to the financial success of the individuals, families, and communities they serve.

Banks place holds on checks to make sure that the check payer has the bank funds necessary to clear it. In addition to protecting your bank, a hold can protect you from spending funds from a check that is later returned unpaid.

Credit union disadvantages

Membership may require meeting certain work, residential or occupational requirements. Many typically offer branches only in a limited area or region.

What is the major drawback of using a credit union? ›

Membership required. Credit unions require their customers to be members. Account holders must meet eligibility requirements to use the products and services.

Credit unions may be local or regional, with limited branches outside of your area. If you travel or move, this can make getting in-person help difficult. May have fewer services. While many larger credit unions offer all of the same services banks do, some provide a limited range of products and services.

A current, valid photo ID – To verify your identity, make sure you have your driver's license, passport, state ID, or another form of valid government ID. Proof of address – To verify your address, you need to bring in something that was sent to your address with your name on it. Bills or bank statements will suffice.

Your Social Security number. A valid, government-issued photo ID like a driver's license, passport or state or military ID. A minimum opening deposit of $25 to activate your account (once you've been approved).

Lenders, including credit unions, typically establish minimum credit score requirements for various loan types, as well as standards for income and debt-to-income ratio (DTI).

If you have a poor credit score, your bank could see you as higher risk, which can affect your eligibility for opening a new account.

Can You Open a Bank Account With Bad Credit? You can open a bank account if you've made banking mistakes or have bad credit, but you may need to look for accounts that won't use ChexSystems if you're worried about your banking history.

Lenders may use your credit report information to decide whether you can get a loan and the terms you get for a loan (for example, the interest rate they will charge you).