Purpose of Credit Unions

by Tamiya King ; Updated July 27, 2017

If you’re looking for a new way to organize and manage your money, you may want to consider joining a credit union. Credit unions serve a number of purposes and taking advantage of these amenities could help you to reach financial goals in a shorter amount of time.

What is a Credit Union?

A credit union is similar to a bank, but is a co-op that is often comprised of individuals with a certain occupation or members of a labor union. The purpose of the credit union is to provide services like loans and exclusive financial services to its members.

Benefits of Credit Unions

Members of a credit union can take advantage of features like receiving profits on the money they have deposited, since the union offers high returns on savings and low interest rates on home and auto loans.

Non-Profit

All credit unions are non-profit and are owned by its members, meaning there aren’t any shareholders that are not directly affiliated with the credit union. Since all the money is kept "inside," union members can take advantage of better service.

Volunteers

Unlike a bank, a credit union is run by its members and elected committee members for the purpose of meeting the needs of customers specifically.

Originality

Since each credit union is created to serve a certain group of people (i.e., teachers, union workers, military personnel), as a member, you’ll have a say in how the union is run.

About the Author

Tamiya King has been writing for over a decade, particularly in the areas of poetry and short stories. She also has extensive experience writing SEO and alternative health articles, and has written published interviews and other pieces for the "Atlanta Tribune" and Jolt Marketing. She possesses a Bachelor of Arts in English and is currently pursuing higher education to become a creative writing professor.