Credit Union Difference
A credit union is a not-for-profit financial institution. The first credit unions were formed in the early 1900s by small groups of citizens with common interests who wanted to pool their money and lend it to one another. What these working-class people created was a cooperative, and all participating members bought “shares” and became owners of the cooperative.
Today, credit unions offer many products and services. They’ve kept pace with technological advances and service options, to provide as much value to their members as possible.
As publicly-traded companies, banks are expected to produce profits for their stockholders. In fact, nearly 1/3 of the profit made by banks comes from customer fees. On the other hand, dividends generated by a credit union are returned to the cooperative. This allows them to offer better rates on savings and loans to their members than banks – along with lower fees.
Here are some examples of what a credit union can do:
- Offer low-interest loans to people of low or modest income so they can purchase a home or a vehicle
- Introduce adults without a financial institution or who are frustrated with their current institution to checking and savings options that will fit their needs and goals
- Educate children and teens to make them financially aware and able to manage their money effectively
- Assist individuals and families with credit repair
- Provide basic financial resources to the underserved
Many credit unions are locally owned and operated, and most provide financial education to their members to help them make informed decisions.
Because credit union employees live where they work, they are very active in their communities. They donate time and money to a variety of causes and charitable organizations. And they reach out to those who could benefit from a local financial institution.
Truly, credit unions are a dependable and people-focused community resource. Try us!