Why Credit Unions Exist and Why You Should Join One
You may not be familiar with the concept of a credit union. And if you think they’re the same as a bank, you may be missing out on something great. There is a real difference, and it starts from the very beginning.
Why Credit Unions Were Formed
Credit unions have a rich history rooted in the idea of people helping people. They began in the 19th century in Europe as small cooperatives created by communities that wanted to help one another access fair financial services. The first credit unions were formed to offer affordable loans and savings options to members who were often excluded from traditional banking services.
That “why” is still in play today.
The idea is simple: create a financial institution that is owned and run by its members, with the goal of serving them, not making a profit. In contrast to traditional banks, credit unions operate as not-for-profit cooperatives, meaning any profits they make are returned to members through better rates, lower fees, and improved services.
Our slogan, “Large Enough to Serve, Yet Small Enough To Care,” comes from this very idea. Even after all of these years, people still need the benefits that a big bank can provide, but with personalized service, friendlier people, dignity, and respect.
Why Credit Unions Are Beneficial Today
While much has changed in the world since the 19th century (gosh, that is an understatement!), the core mission of credit unions remains the same: to serve members. Today, credit unions, like the Ashland Community Credit Union, continue to offer many advantages over traditional banks:
- Lower Fees and Better Rates: Because credit unions are not focused on profit, members enjoy lower fees and better interest rates on loans, mortgages, and savings accounts.
- Personalized Service: Credit unions are typically smaller, allowing for more personalized and relationship-driven service. You’re not just another customer; you’re a member-owner, and it matters what you think.
- Community Focus: Credit unions are deeply connected to their local communities. One thing we do at the Ashland Community Credit Union is offer donations every month with every in-house secured loan a member takes out. That’s the right thing to do!
The Benefits of Joining a Credit Union
When you join a credit union, you’re not just opening an account—you’re taking ownership with a voice and a vote. Every member is an owner, and decisions are made with your best interest in mind. It’s a true democratic operation focused on our member’s financial health, not shareholder profits.
In addition to better rates and lower fees, credit unions provide access to essential services, such as loans, credit cards, and online banking, all backed by the security of the National Credit Union Administration (NCUA).
Credit unions started with a simple mission of helping people gain access to fair financial services, and today, they continue to provide valuable benefits to members. That mission is still alive today. The Ashland Community Credit Union began in 1951, and we’re still operating under the same principles.
People Helping People. Join Us!
