What Is a Credit Union?

By Frank Bass – Updated Jul 28, 2025 at 12:52 PM | Fact-checked by Robin Hartill, CFP

Key Points

Credit unions are nonprofit co-ops owned by members and typically offer better rates and locally focused service.
Membership in credit unions grew by 2.9 million, reaching 143.2 million in early 2025.
Credit union assets rose by $60 billion in Q1 2025, with loans at $1.65 trillion.

If you’ve ever been tempted to pull your money out of a bank, you should know there are options (besides your mattress). One of the most prominent alternatives to commercial banks is a credit union, which is a nonprofit, member-owned financial institution. Read on to learn more about credit unions, including the types of services they offer, their history, and the pros and cons of establishing a credit union account.

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Person in deep thought, holding a piggy bank. — Image source: Getty Images.

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About the Author

Frank Bass is a contributing Motley Fool stock market analyst and editor covering energy, healthcare, consumer, and financial sectors. Frank has decades of experience in financial journalism, holding reporting and editing roles at The Wall Street Journal, The Associated Press, and Bloomberg. He also currently edits research on the global energy transition. He holds a bachelor’s degree in journalism from Texas Tech University and is a graduate student at the University of Alaska Fairbanks. Fun Facts: Frank has hiked The Long Trail in Vermont from end to end, and currently lives in a semi-dry cabin in Interior Alaska.

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Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Frank Bass has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.