Serious question. I’m currently with a bank and have heard CU’s are better. Is there any difference?
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To use a credit union, you have to be a member. Some credit unions only allow certain types of people to members – like teachers, or employees of a certain large company (and their families); others allow anyone to join. Members of a credit union are also partial owners of the credit union and they get a share of the profits at the end of the year.
Banks are owned by a person, family, or a company, depending on their size and history. They allow anyone to use them. The owners are the ones who get all the profits from the bank.
So the basic difference is that banks are in business to make a profit for the owners while credit unions are in business to make a profit for all the members.
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