What is a Credit Union

"About the credit union"

What is a credit union?

A credit union is a group of people who save together and lend to each other at a fair and reasonable rate of interest. Credit unions offer members the chance to have control over their own finances by making their own savings work for them. Every credit union is owned by the members — the people who save and borrow with it — People like you.

When you become a member and start saving with your credit union you will have access to fair and reasonable rates on savings and loans.

Your savings contribute to your credit union’s loan fund. So your savings are helping other members. Members like you.

A credit union exists only to serve its members — not to profit from their needs. Surplus income generated is returned to the members by way of a dividend an/or is directed to improved or additional services required by the members.

Credit unions are non-sectarian and non-political, and continue that Irish tradition of co-operative self help.

 Joining a credit union

Joining a credit union is easy once you are within the common bond of the credit union.

What is the common bond?

The common bond is the factor which unites all the members of your credit union — it is what all members have in common. Because of the common bond, all members have the good of their credit union at heart; they know and trust each other. The common bond ensures that the savings of members are available to fellow members as loans. It also enables credit judgements to be made on character and personal record as well as on commercial risk factor.

The most usual common bonds are:

• Community bond (where all the members live, and in some cases work, in a particular locality).
• Occupational bond (where all members are in the same profession or occupation, or work for the same employer).
• Associational bond (where all the members are in the same society or association).