Credit union

A credit union is a co-operative financial institution that is owned, controlled and administered by its members. Only a member of a credit union may deposit money with the credit union, or borrow money from it. The character of a borrower is deemed to be the most important security for his/her loan.

Since a credit union is a co-operative institution its policies governing interest rates and other matters are set to reflect the interests of the membership as a whole.

Generally, credit unions are required to restrict their membership to a certain protion of the population, such as employees of a certain company, educators, or people who live in a certain area.

External links

• Clare Morris Credit Union
• American Credit Union History