Overview

A credit union's customers are its members. Credit unions can only offer services to members. This is because credit unions are co-operatives - self-help organisations which are owned and controlled democratically by their members.
To be a member you must meet the criteria of the Common Bond set by the credit union. This might be that you live or work in a certain area, belong to a particular organisation, or work for a certain employer.

Credit unions promote responsible lending. The services they provide should give all members access to:

• Banking services - offering members a current account, so they have access to their savings at any time
• Savings accounts - members are encouraged to build up their assets and accumulate savings
• Affordable loans - taking into account the member's personal circumstances, payment history and ability to repay the loan
• Financial education and access to money advice - empowering members to make informed choices about financial products
• Insurance products - enabling members to build on and protect their assets
• The rules

Credit unions have a number of clear objectives enshrined in their constitution. These are the rules which credit unions themselves have to follow:

• Promoting thrift - members must be encouraged to save as well as borrow
• Providing credit and loan products with fair and reasonable interest rates
• The efficient use and control of members' savings for mutual benefit in order to earn a rate of return (the dividend)
• Training members to use money wisely, devise a budget and manage their financial affairs
• Members own and control their credit unions

Because credit unions are co-operatives, members have a say in how the credit union is run and the directors are elected from the members, by the members, to represent their interests.

Credit unions distribute their profits to their members in dividends. This means that the money stays in the community rather than going to faceless shareholders. Credit unions are also committed to improving the economic and social well-being of their members.