In order for one to understand what a credit union is, one must first understand it's history.

Credit unions were modeled after the 19th century European agricultural cooperatives. Members combined their resources for the benefits of the group. They first gained widespread acceptance in Canada, but the idea soon caught hold in America. After seeing the Canadians success with the institutions, two American businessmen, Edward Filene and Pierre Jay, were inspired to push for the first credit union legislation in Massachusetts.

Credit unions are non-profit organizations designed to be owned, controlled and administered by the membership. Only members may deposit money in or borrow money from a credit union. Membership is usually limited based on where you live, work, attend school or attend church. These institutions usually offer lower interest rates and fees to their members than banks do as they are not trying to profit from their endeavors.

Basically credit unions are an autonomous self-help institution that thrives on the principles of democracy, with each member receiving one vote, and community service.

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