Why do credit unions restrict their memberships?


Maybe it’s a credit limit?

Maybe what is a credit limit? :confused:

Perhaps I should elaborate. I’m talking about the fact that all credit unions that I’m aware of restrict their memberships to certain types of people. Employees of certain companies or in certain fields, members of a church, etc.

Accident of history, stemming from the legislation initially regulating credit unions, and still operating that way in most cases, even though credit unions have spread all over the world - way beyond the initial jurisdiction.


Because they are required to by Federal Law.

That part of the law was pushed real hard by the banking industry, who considered credit unions very unwelcome competition (and still do).

There are frequent disputes, even today, where banks complain that credit unions are being ‘too liberal’ with their membership requirements, and allowing too many people to join.