Understanding Credit Unions

Banking isn't just for banks — another type of financial institution that millions of people use every day is called a credit union. Credit unions operate like banks, with a few key differences that might make a credit union your perfect option.

A credit union is a not-for-profit, financial collective; members of credit unions are also considered part owners. Rather than operating with the goal of making a profit and providing value to shareholders — which are banks’ primary objectives — credit unions make their members the top priority.

Every credit union seeks to benefit a particular group of people or organization. There are credit unions for teachers, military personnel, residents of specific cities and more. However, that means that to join a credit union, you must qualify under its field of membership.