How Does a Credit Union Work?

Thinking about joining your local credit union? Understanding how credit unions functions is a good place to start to see if it would be a good fit for you. Here are the basics of how credit unions work.

Credit unions offer members the same services as big banks. At your local credit union you can open a checking account or get a car loan for example. The credit union process differs in whom they work for.

Banks work for their shareholders who focus on profits. Credit Unions work for their members with a focus on financial well-being for all.

Unlike banks, credit unions function as nonprofit organizations. This means they pay no state or federal taxes.
You can become a member of your local credit union by opening an account for as little as $5.

Back