Credit Unions

What is a credit union?

These are financial co-operatives, owned and run by their members. It is a safe place to save, offers affordable credit, encourages good money management and helps the local economy. Each credit union has a common bond which determines who can join it. The common bond may be for people living or working in the same area, people working for the same employer or people who belong to the same association, such as a church or trade union.

Since July 2002, credit unions have been regulated by the Financial Services Authority (FSA), the same as all banks and building societies. The performance of every credit union is monitored by the FSA and the staff and volunteers involved in running it must be approved by the FSA.

How do I save with a credit union?

You can save as much or as little as you wish. Payments can be made at paying in points, by payment card or directly from bank accounts. Ways of paying vary from one credit union to the next.

Can I apply for a loan?

Loans are available to members. Some credit unions like you to save for a few weeks before you can apply for a loan, the interest on which would be about 1% a month. Some credit unions can offer you a loan without saving first but the interest rate is likely to be about 2% a month. Loans come with no arrangement fees, no hidden charges and no penalties for repaying them early.

Page: All space 1 space 2 space