What is a credit union? A credit union simply put is like a bank. Credit unions are established within corporations and organizations. They are protected like the traditional banks. During the Great Depression, credit unions were set up by large neighborhoods because traditional banks would not give funding to people that weren't wealthy.

Today credit unions are set up by companies. Most people are with a state credit union or a members credit union through their employer. Credit Unions get tax breaks that traditional banks do not get. Credit Unions are more likely to approve a smaller loan then a traditional bank. They also will provide business, condo, bill and home improvement loans that most banks won't approve.

You can have savings and checking accounts with Credit Unions. The main complaint is that there are not as many free ATMs for credit union users or as many buildings. You can find say a few dozen branches of a particular bank but maybe only 2 of a credit union. Members are limited to the choices of which branch to go to.

Credit unions are like banks with more offers for the smaller or traditional working class person.

Learn more about this author, Joyce Priddy.
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