How are credit unions different from banks?

Answer:
Credit unions are nonprofit financial institutions.
Technically, you're answer is incorrect. Credit unions are not-for-profit, member owned, financial cooperatives. They are NOT the Salvation Army, the Red Cross, or Goodwill, which are nonprofit organizations. Credit Unions must earn money to cover overhead & operations, provide returns to their members and build capital. Since they are cooperatives, they issue no stock (which banks do to raise capital to expand branchs and offer additional services) and the only way credit unions can build capital is through earnings.
First answer by Kingstonz. Last edit by NamSemperFi. Contributor trust: 0 [recommend contributor recommended]. Question popularity: 2 [recommend question].