Since a credit union’s primary focus is its people, or co-owners, they are more concerned about making you happy than turning a profit. As a result, credit unions typically offer more educational services and seminars to teach you about all financial products so you can make the best decision. Banks, on the other hand, may be more inclined to recommend only those products that bring in higher corporate profits.

As a not-for-profit organization, credit unions have many advantages over banks. They are exempt from most state and federal taxes, do not have many marketing costs, or high salaried executives. This allows credit unions to pass

The primary difference is the reason for existance – Profit/Non Profit, that is the difference. Banks exist to enrich it’s shareholders (who may or may not be customers), while Credit Unions need make enough to pay salaries and keep the lights on. Any extra money made is returned to the members (skip payments, special rates on vacation loans, etc). Rarely did I ever see salaries/bonuses of Credit Unions employees even come close to those paid by banks, and in my humble opinion, people working at credit unions honestly cared about their members, and would frequently make an exception to loan a member money (within the policies set by the board), while banks rarely extended this courtesy.

All in all, you’re free to give your business to whom ever you choose, but I’d take the word of a credit union over a banker any day, as well as a loan. Some bankers can be ok, but I’ll continue to give my business to someone who isn’t out to make a buck for shareholders I don’t know or trust.

Btw, I spent my first career as an auditor of both Credit Unions and “for profit” banks. It was my experiences are the last bank that made me quit and switch careers.