A credit union is a not-for-profit financial cooperative that is chartered by the government. It is owned by and operated for the benefit of its members - those who use its services. Income from operations is used to provide higher dividends on savings, to permit lower rates on loans and to add to reserves, which strengthen the financial position of the cooperative. Credit unions espouse the philosophy of "people helping people."

Unlike a bank, whose overriding goal is to earn a profit for the stockholders who own it, a credit union's aim is to improve the economic well-being of its members. A credit union places its member's interests, not its net income, first.