Credit unions

ahai1

I did a quick search but I was not able to find anything. I have a number of questions.

What are they? and what are the interest rates like?

liitleblackcat

Take a look at http://www.abcul.org/page/about/intro.cfm

They are small scale savings and loan organisations, not places to save or borrow thousands of pounds. They aim to pay a dividend on savings once a year to all their members. This can be as much as 8% of the amount that people have saved, but is typically 2 or 3%. Most loans from them will cost you no more than 1% a month on the reducing balance of the loan (an APR of 12.7%). But they have limits on what you can save and borrow.

ahai1

Does that mean I can't put a significant amount of money? I only plan to put in a small amount but just in case.

brightonman123

i think they may need a regular weekly/monthly amount paid in.. esp. if you intend to get a loan from them at some stage..

ahai1

Thanks for your help but I don't I will need a loan in the short term.