The Credit Union Difference

The philosophy of the credit union movement is Not for Profit, Not for Charity, But for Service. Credit unions promote thrift and teach the wise use of credit. Credit unions encourage their members to develop a systematic savings program and they provide a source of low-cost credit. Because credit unions are not-for-profit and have low overhead costs, they are usually able to offer lower interest rates on loans and higher dividends on members’ shares (savings). A credit union is also non-profit in the sense that its purpose is to serve the members, not to make money. It needs money to provide services and benefits. But money is the means, not the end itself.