A credit union is a not-for-profit financial cooperative owned and operated by its members. The members pool their financial assets to provide funds for loans to themselves and their fellow members. In addition, the credit union offers a wide variety of financial services.

As a cooperative, a credit union is unique in the financial world. Credit unions exist to serve their members. The credit union is owned and directed by its members and is dedicated to the credit union philosophy of "people helping people". Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends and improved member services at rates frequently more favorable than available at commercial lenders.

A credit union exists to serve a specific group of people such as employees of a particular entity or the members of a professional or religious group. The credit union serves everyone in that group excluding no one.

Myth: Credit unions only offer a few services, such as checking accounts, savings and loans.
Fact: Today, credit unions bear very little resemblance to your grandfather's credit union. In fact, many of today's credit unions offer all the cutting edge services that large banks do: online banking and bill payer, 24-hour call centers, asset management, extensive ATMs and branches.

Myth: Credit unions only serve a small group of people.
Fact: As of June 30th, 2001 , total membership in credit unions in the US reached 78 million, nearly one third of the country's population. With the 1998 federal legislation that allowed credit unions more leeway in membership, many credit unions are widening their areas of operation.

Myth: Credit unions are only available through a person's workplace.
Fact: Many credit unions are available through the workplace, but many also have a common bond that is an association (such as members of Knights of Columbus) or a geographic area (such as a city or town).

Myth: Credit unions don't insure deposits.
Fact: The National Credit Union Share Insurance Fund (administered by the National Credit Union Administration, a federal government agency) insures credit union deposits up to $100,000.

Myth: Credit unions do not pay taxes.
Fact: Because credit unions are not-for-profit institutions, returning all profits to their members in the form of higher rates on savings, lower loan rates and low- or no-fee services, they do not pay corporate income taxes. However, credit unions do pay property, county, school, municipal and employer taxes.