Consumer Comeback Blog

Credit Score Glossary: Credit Union

Credit Union: A member-owned not-for-profit financial institution created and operated by its members, or account holders.

Credit unions provide competitive rates, as well as other financial services to its members. Typically, credit unions tend to be smaller and more community-oriented than banks, and when credit union members deposit money into their accounts, they become part owners. Since credit unions are so much smaller than big banks, members are able to form relationships which may prove beneficial when trying to get a loan.