What Is A Credit Union?

Credit unions are financial institutions formed by an organized group of people with a common bond (Cardinal's common bond is Lake, Cuyahoga, Ashtabula and Geauga counties). They are not-for-profit financial cooperatives owned and run by the membership.

Members of credit unions pool their assets to provide loans and other financial services to each other.

Credit unions differ from banks in several ways:

Credit Unions                                       Other Financial Institutions
Not-for-profit cooperatives                      For-Profit Companies
Owned by members                                Owned by outside stockholders
Operated by volunteer boards                  Controlled by paid boards

These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees.

Credit unions are “risk-averse”.  Credit unions protect their members’ assets with prudent loan underwriting and investing in safe, principle-protected investments.