A credit union is a member-owned, not-for-profit, financial co-operative. The members save money together and loans are made to members at low interest rates, from the pooled funds. Lots of credit unions are locally assigned. Everyone can find their local credit union here. How it works: People join credit unions, opening saving accounts that they save in regularly. Then the saved money is used to loan out to people in need of loans. Borrowers repay their loans with a small amount of interest. After the end of the financial year any surplus funds can be shared by members as a dividend, reinvested in the company and invested in the community.