A credit union is a financial cooperative, owned and controlled by its members. Unlike a bank or other savings institution, it is not-for-profit, which means that earnings are returned to members in the form of better rates on their savings and loans or are invested in new or improved services.
All members of a credit union have something in common. Once you purchase a share in the credit union, you become a member. And as a shareholder, you help to set the policies and direction of the credit union by electing the board of directors on a one-member, one-vote basis.
Only members can borrow from credit unions. Credit unions specialize in consumer loans for cars, vacations, education, home improvements, personal emergencies, and other needs -- often at interest rates lower than those of other lenders.
