If you are looking at options on the best loan out there for you, are struggling to get a loan from a high street bank or simply want help with saving on a budget, then learn more about Credit Unions.
What is a Credit Union?
It is a mutual organisation, which means it is owned by the people who use its services, and not external shareholders or private investors. It is governed by a board, who appoint experts to run the business.
In the last 50 years, Credit Unions across the UK have provided loans and savings to more than 1.2 million people.
Why does that matter?
- Credit Unions are non-profit. Any money made from their services are given back to communities that need it.
2. It is owned by the people who use it. So, they always want to provide the best service possible for its members.
3. Their members get a say in how the Credit Union is run by a yearly vote.
What can they offer me?
Credit unions offer a wide range of financial products and services to suit people from all walks of life.
- They offer affordable loans
These can range from shorter term loans of a few hundred pounds to much larger loans for holidays, buying a car, home improvements or even a mortgage.
The interest rate is also very affordable, especially on smaller loans. It is much lower than doorstep lenders or payday lenders. In fact, the most expensive Credit Union loan in Britain is still eight times cheaper than a payday loan.
So, they will offer you products suited to your individual needs at rates you can afford.
- They offer loans when other lenders might not be able to.
Your credit score does not need to be as high to apply for a Credit Union Loan.
- They can help you save regularly and stay on top of your finances.
Credit Unions make it easier to save, even a small amount saved each week will soon add up.
And, don’t worry, all money saved with a Credit Union is protected in the same way a bank would, by the Financial Services Compensation Scheme. Find out more about how your money is protected:
How do I join?
Anyone can become a member. However, you must fit within that credit union’s ‘common bond’. This can be through the following requirements:
- Live or work in a specified area
- Work for an employer partnered with a Credit Union
- Be a resident to a partnered housing association
- Work for a particular industry (eg. Post office workers)
- Belong to a particular church, trade union or other association
So, keep a look out on how you could join a Credit Union local to you.