|What's A Credit Union|
The Credit Union Difference
Credit unions are truly unique in the financial services industry. A credit union is an independent, nonprofit, financial cooperative owned and operated by its members, and chartered and regulated by the government (either state or federal). More simply stated, a credit union is a group of people coming together to pool their resources in order to receive personal financial services at fair and favorable rates and terms.
As a nonprofit cooperative, the credit union's primary focus is to provide loans, savings accounts and other services to its members. Members profit in various ways, some of which may include lower loan rates, higher savings rates, lower or no service fees, more personalized service, automated service delivery systems, and more.
Credit union bylaws (its rules for legal operation) define those who are eligible to join. Credit unions can represent a single or multiple group(s) of people, each with a common bond. Examples are: a place of employment, an organization, a church, or a group within a well-defined geographic region.
Credit unions are member-owned and controlled. Each member has an equal vote and the opportunity to serve on the board of directors. The board, elected by the membership, is responsible for policy making, setting dividend and interest rates and overseeing operations. As volunteers, directors serve the credit union without compensation. Ownership equates to a vested interest in the financial growth, service and stability of the organization.