What Is A Credit Union?

For Members, By Members 
Credit unions are member-owned, not-for-profit financial institutions with member-elected, volunteer board members. Credit unions operate for the benefit of their members, not a select group of stockholders. Since 1940, LGWFCU has exemplified the credit union motto, "Not for profit, not for charity, but for service."

Today more than 100 million Americans are members of credit unions.  
​Collectively, credit unions hold more than $1.026 trillion in assets.

Banks Versus Credit Unions

CREDIT UNIONS
Not For Profit Corporations
Owned by Members
Lower and Less Fees
Lower Loan Rates
Pay Higher Savings Rates
Volunteer Board Member

BANKS
For Profit Corporations
Owned by Outside Stockholders
Higher and More Fees
Higher Loan Rates
Pay Lower Savings Rates
Paid Board of Directors

HISTORY OF CREDIT UNIONS
In the mid-1800's, crop failure and famine in Germany sparked the co-op movement, allowing members to purchase bread and other necessities from other members at substantial savings by pooling their resources together.  

Following that concept, the first co-op credit society was organized to give people a different source of credit rather than loan sharks or banks.  The first credit union in the United States opened in 1908 to provide credit to working class families.

During the 1920s, credit unions became increasingly popular.  Families had more money to save and could afford products like automobiles and washing machines.  They, however, needed a source of inexpensive credit to purchase these goods.  The popularity of credit unions grew because commercial banks and savings institutions generally showed limited interest in offering such consumer loans.
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