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What's a Credit Union?

What's a Credit Union?

Credit unions are not-for-profit, member-owned, financial institutions that exist to serve the financial needs of their member-owners. Their main focus is their members and their local community.

Credit unions serve a common field of membership based on characteristics such as geographical area, employee groups, or membership in an organization. Becoming a member is simple and easy.

Credit unions are owned by their members and governed in a democratic way by a volunteer board of directors, who are also members of the credit union.

Like other not-for-profits, credit unions receive a federal income tax exemption because they are mutually operated without profit. Earnings are returned back to members of the credit union in the form of lower rates and fees. Credit unions pay other kinds of taxes, for example, payroll, state, and sales taxes.