Cardiff Credit Union

Cardiff Credit Union is a not-for-profit, member-owned financial co-operative serving Cardiff, the Vale of Glamorgan and the wider Wales area¹. It offers two main things: savings accounts and loans. Unlike a bank, it has no outside shareholders, because the people who save and borrow with it own it². Membership is free, and anyone who shares its common bond, which is based on where you live or work, can join³.

The credit union describes itself as a provider of "affordable loans based on your circumstances" and "secure savings options"¹. In practice that means a range of adult savings accounts, junior accounts for children, a Christmas saver, and loans that include a credit builder loan designed to strengthen your credit score and a secured loan tied to your savings⁴. Savings are protected by the Financial Services Compensation Scheme up to £120,000 per person, in the same way as savings with banks and building societies⁷.

A member-owned, not-for-profit co-operative

A credit union is, at heart, a self-help co-operative: its members pool their savings so that they can lend to each other at a low rate of interest¹⁰. Cardiff Credit Union fits that model exactly. It is a not-for-profit, member-owned organisation¹, and it puts the point plainly on its own savings pages: "The big difference between your credit union and any other savings account is that members own the credit union."²

That ownership structure shapes everything about how the organisation behaves. The Welsh Government describes credit unions as "not for profit community lenders, providing affordable loans, and savings"¹¹. Because there are no shareholders to pay, any surplus the credit union makes is either held in reserve for the benefit of members or returned to them. Cardiff Credit Union does this through a variable dividend on savings, agreed retrospectively at its annual general meeting each spring, which depends on how the organisation has performed financially during the year⁹.

Members' savings are not idle. They are the funding source for the loans the credit union makes: "Members' savings are used to fund loans to other credit-worthy members of the credit union."¹² So a saver is also, indirectly, a lender, and the interest borrowers pay is what makes the dividend possible. This is the money cycle that separates a credit union from a high street bank, where profits flow out to external shareholders instead.

Membership also carries a vote. The credit union's members elect its leadership and approve decisions such as the dividend at the AGM, which is how a co-operative stays answerable to the people who use it. Junior members are the one exception: the credit union states that juniors do not have voting rights at its AGM¹³.

Savings accounts and how they work

Cardiff Credit Union's savings accounts are open to members, and you must become a member before you can open one⁷. The range covers adult savings, junior savings accounts for children, and a Christmas saver account⁶. Junior accounts are available to anyone in Cardiff or the Vale of Glamorgan, and the credit union runs a number of School Saver Clubs in Cardiff in partnership with Cardiff Council and local schools, so children can save at weekly school collections¹³.

What makes these accounts different from a bank savings account is the return. Instead of a fixed interest rate set in advance, the credit union pays "an annual interest payment in the form of a variable dividend"⁹. The amount is agreed retrospectively at the AGM each spring and depends on the organisation's financial performance that year, so you will not know what you will get until it is declared. MoneyHelper describes credit union savings accounts more generally as accounts that "either pay interest or a share of any profits"¹⁵, and Cardiff Credit Union's dividend is the profit-share version of that.

There are several ways to pay money in, and you can combine more than one⁷:

• standing order from a bank account
• payroll deduction, if your employer takes part
• online banking payment
• in person at the Cardiff office or at collection points
• payment card at a Post Office or Paypoint outlet
• weekly school collection, for School Saver Club members

Once your account is open, you can manage it online: the credit union offers online access to account balances and withdrawal requests⁷. Savings can be held alongside borrowing too. Under the Saver Reward Loan, savings matching the full loan value must be kept locked in the account until the loan is repaid⁵, which is one way the credit union secures its lending while the member keeps building a savings pot.

If you are comparing credit union savings with the wider market, our guide to savings accounts explains the types available elsewhere, and credit unions covers how the sector as a whole works.

Borrowing from Cardiff Credit Union: how loans work

Cardiff Credit Union lends to its members, and you must be a member of a credit union to get a loan from it¹⁶. Its loan range includes standard personal loans, a credit builder loan and a secured loan⁴. The credit builder loan "has been specifically designed to help strengthen your credit score"⁴, and notably it is open to people who are not yet members, so applying for this loan can be a route into membership. The secured loan, the Saver Reward Loan, requires savings matching the loan value to be locked in until repayment⁵.

How much you can borrow depends on your savings and circumstances. Independent guidance notes that credit unions "allow you to borrow two or three times as much as you have saved at a low interest rate"¹⁷, and that lending rules vary: "Some will lend to you as soon as you become a member", while others only lend after you have saved for a set period, with affordability checked against the money you have left after paying your bills¹⁸. Cardiff Credit Union states that anyone who lives or works in Wales is eligible to apply for a loan with it⁴.

Two rules of the sector are worth knowing. First, there is a legal cap: the maximum interest a credit union in Great Britain may charge on loans is 3% per month¹⁹. Second, credit union loans are typically small and tied to what you can afford, which is why credit unions are often suggested as an alternative to high cost credit. Independent guidance describes credit union loans as "suited to your individual needs and at rates you can easily afford"²⁰. Most credit unions also offer free life or loan-protection insurance with their loans¹⁸, meaning the debt can be cleared or reduced if the borrower dies, though the terms of any cover vary and can be confirmed with the credit union directly.

A credit union loan can also be used to bring existing debts together. With a debt consolidation loan, "You work out how much you need to borrow to pay off all your debt. You then apply for a debt consolidation loan for that amount", and if approved you use the money to repay each of your creditors, leaving one monthly repayment²¹. Whether that helps depends on the total cost compared with your existing debts, and free debt advice can help you judge it. Our loans guide covers loan types generally, and credit scores explains how a credit builder loan affects your credit record.

If you are already struggling with repayments on a loan from the credit union, contact it before anything else. It says it can "discuss your situation and, where appropriate, agree a repayment plan that reflects your circumstances"¹.

Who can join Cardiff Credit Union

Credit union membership is based on a common bond: "Anyone can become a member, however you must share a 'common bond' with other members"²². For Cardiff Credit Union, that bond is geographical. Joining online is described as the easiest option for those who live or work in Cardiff or the Vale of Glamorgan⁶, junior savings accounts are available to anyone in those areas¹³, and loans are open to anyone who lives or works in Wales⁴.

Membership itself is free³. Beyond the geography, the usual credit union rules apply: anyone in the household of a person who shares the common bond can usually join too¹⁶. Some credit unions elsewhere restrict membership by area or by type of job²³, so if you are outside Wales you can search for your nearest credit union through the findyourcreditunion.co.uk website¹⁸ or the Association of British Credit Unions²⁴.

How to join and manage your account

To open a savings account, you first apply to become a member⁷. The routes are:

1. Join online, which the credit union describes as the easiest option for people who live or work in Cardiff or the Vale of Glamorgan⁶.
2. Download the Membership Application Pack⁷.
3. Call 029 2111 1720 or email ccu@cardiffcu.com⁷.

Once you are a member, you can open savings, choose one or more of the ways to pay in, and manage your account through the members' area of the website, where you can view balances and request withdrawals⁷. Loan applications are also made through the members' area: for the Saver Reward Loan, "you can apply by logging into the members' area of our website"⁵. For the credit builder loan, applications are open to people who are not yet members⁴.

If you want to check what information you will need before joining, independent guidance suggests visiting or calling your chosen credit union to confirm²². Cardiff Credit Union's contact details above are the place to start.

Cardiff and Vale, Paysaver and the other names it has used

The name on the adverts is Cardiff Credit Union, but the registered firm behind it is Cardiff and the Vale Credit Union Limited, which uses Cardiff Credit Union as its current trading name⁸. If you have dealt with the organisation over a long period, you may remember it by earlier names: its previous names include Paysaver (Cardiff & The Vale) Credit Union Limited and Cardiff County and Vale of Glamorgan Council Staff Credit Union⁸. Those name changes reflect the credit union's history, growing from a staff savings scheme for council employees into a community lender for the whole region.

None of this changes anything practical for a member. The same firm, with the same FCA authorisation dating from 2 July 2002, stands behind the brand under every name it has used⁸. If you are checking old paperwork or a credit file entry, the firm reference number 213467 identifies the organisation throughout⁸.

How your savings are protected

Savings with Cardiff Credit Union are protected by the Financial Services Compensation Scheme (FSCS) in the same way as savings with banks and building societies⁷. If the credit union were to fail, the FSCS would repay eligible depositors up to that limit.

The credit union also states that credit unions are fully insured against fraud⁶. Regulation sits behind all of this: like every credit union, it is regulated by the Financial Conduct Authority and the Prudential Regulation Authority⁶, and it appears on the Bank of England's list of credit unions incorporated in the UK. You can verify its status yourself on the FCA Register using firm reference number 213467⁸.

Where protection stops: the FSCS limit applies per person, per firm, so if you hold savings elsewhere with a different authorised firm, that has its own allowance. The dividend is not protected in the sense of being guaranteed, because it depends on each year's financial performance and is agreed retrospectively⁹. Our consumer protection guide explains how the FSCS and other safeguards work across UK finance.

Complaints and where to get help

The first step with any problem is to complain to the credit union directly, in line with FCA regulation and Consumer Duty requirements that apply to it¹. Set out what went wrong, when, and what you would like done. If the matter concerns a loan you cannot afford to repay, say so at the outset: the credit union states it can agree a repayment plan that reflects your circumstances¹.

If the credit union cannot resolve your complaint, you can take it to the Financial Ombudsman Service, which handles complaints about credit and borrowing, including unaffordable lending. The ombudsman is free to use and can order compensation where it finds the lender acted wrongly. One technical point applies to credit union loans: the FCA's Consumer Credit sourcebook (CONC) does not apply to most of the loans credit unions provide¹⁶, which affects some of the rules that govern other lenders, but the ombudsman can still consider whether a loan was affordable.

For free, independent help with debts or budgeting:

• StepChange Debt Charity and National Debtline provide free debt advice, and StepChange has specific information on credit unions and borrowing options¹⁶.
• MoneyHelper, the government-backed money service, has information on credit unions and their accounts¹⁵.
• Citizens Advice offers free advice on money and debt, through www.citizensadvice.org.uk⁹.

If you are unsure whether a credit union is right for you, our debt guide sets out the help available, and banks and building societies explains the alternatives for everyday saving.