She called the credit union in a panic, saying she had written drafts against her empty account. The credit union calmed her down, floated her the money until her check was deposited, and waived the fees for any bounced checks that resulted from this mishap. These are but a few of the numerous stories that exemplify the differences between credit unions and for-profit financial institutions. Based on the success of credit unions, they also provide a much-wanted alternative. Credit union membership and assets have steadily increased over the past 10 years.
Several reasons explain credit unions' popularity among consumers.
Banks, on the other hand, generate profits for the benefit of their stockholders. In addition, credit unions are self-governed cooperatives, giving each member a voice in the overall governance of the credit union. A credit union's volunteer board of directors, which sets policy and direction for the credit union, is elected by and from the membership. Moreover, as mutually owned financial institutions, credit unions focus on providing quality member service, not generating profits. As a result, members typically receive much better service at their credit unions than they do at other financial institutions.