Who We Are

A credit union is a cooperative financial institution which is chartered under either state or federal law. The purpose of a credit union is to encourage saving, to make credit available at reasonable rates for productive purposes and to provide other financial services at a reasonable cost. After expenses and legal reserves are set aside, the profit is returned to the member in the form of dividends and other benefits. The Credit Union does not profit... only its members do. As a rule, IHECU does not provide commercial loans.

Many people ask if credit unions are connected with labor unions. Although many credit union members also belong to labor unions, credit unions have no official connection with labor unions. They are controlled by their individual members, not by any outside organization. Credit unions are found in both unionized and non-unionized companies.

The International Harvester Employee Credit Union, Inc. was organized in 1934 as a State Chartered Credit Union and has become a multi-million dollar corporation. It is a non-profit corporation whose purpose is to serve the financial needs of its members. IHECU is owned by its members. When a person opens a share account, he or she actually purchases a "share" in the cooperative. Everyone who is 18 years of age or older and who owns a share is eligible to vote in the annual election for the Board of Directors. The Board of Directors establishes policies and they are directly responsible for the operation of the Credit Union, including financial solvency, the selection of services to be offered, the price of services and other operating decisions. The directors of IHECU are chosen from the membership through the annual election. There are no outside directors. Directors and other volunteers serve without pay.

In addition to being supervised and examined by the State government, the Credit Union has a three million dollar bond and is audited monthly by an independent accounting firm.

IHECU is capitalized by its members through regular savings. Savings held by members are then available for other members to borrow. No one can borrow until someone saves.

You may ask "Why not go to a bank for these services?" IHECU offers several advantages. Because costs are kept low, the Credit Union can offer loans at substantially lower rates than other financial institutions. Individuals often feel more confident about asking for a loan at IHECU, because they're owners, not just customers. Other services, like our share draft (checking) accounts and Visa credit card, also have lower service fees than at banks.

Now that we've told you who and what we are, we would like to tell you what we are NOT. IHECU is not a credit bureau; it is not a labor union; it is not a loan or finance company; it is not a bank. IHECU's basic objective is, through our combined savings, to promote thrift among its members and to extend credit to its members for any worthwhile purpose.