- Credit Union Motto
The concept of credit unions ("people helping people") goes back to mid-19th century Europe when a group of farmers put together their money to purchase supplies at a lower price. Credit unions originally pooled their money to provide loans at lower interest rates to other members who needed to borrow.
The first credit union in the United States was St. Mary's Cooperative Credit Association. It was begun by parishioners of St. Mary Catholic Church in Manchester, New Hampshire, in April 1909.
Because St. Mary's Credit Union was open to anyone in the community, it especially aided Catholic immigrants and the working poor in starting businesses and purchasing homes. During the Great Depression of the 1930s, St. Mary's Credit Union survived when many banks failed.
During the prosperous 1920s, Americans had more money to spend on items such as automobiles and washing machines. Because banks weren't providing consumer credit, people turned to their local credit union which became a source of inexpensive credit.
Today credit unions are member-owned, non-profit financial institutions in which excess earnings are returned to members. More than 8,6000 credit unions are in the United States, serving 85 million members.
International Credit Union Day is celebrated in mid-October.
- Little Burgundy Book, Diocese of Saginaw