Credit unions

blt

Hi, Can anyone tell me what a credit union is? There's one in my town which I've been past a few times and I noticed some people on here talking about them. Thanks

grumbler

See some information here: http://www.tameside.gov.uk/eandp/new/credithme.htm

Justicia

Thank you for that link, grumbler, I had occassionally wondered the same seeing advertising literature for a company-based union recently.

worndownmum

Hi I belong to a credit union and I started saving a few years ago when they opened in our town centre.
I set up a dd for £10 a month when the kids were little on the advice of my sister who lives in Ireland.
Nearl every adult and child in Ireland has an account with them.

They were great when my daughter got her first car as you are told to take out a small loan £50-£100 at first and when this is paid you can then borrow 3 the amount of what you have in savings.

It is mind boggling seeing all the little kids in Ireland every friday evening queing up to put some of their pocket money in usually 50p-£1

A lot of the parents use it for school trips or towards the cost of the childs holy communion which nearly costs as much as a wedding these days.

Jessie

beanielou

Im in one and I think that they are great.Can be helpful to people with a not so good credit rating.
Lou

stellagypsy

We have one through work. it is excellent, especially if you are in the situation where banks won't offer a loan due to poor credit rating. We have to save £13 per month mimimum and they have now waived the "4 times" borrowing limit. Repayments for loans are deducted at source from salary.

Highly recommended!

jesster_2

I believe they were originally set up to help break the stranglehold that loan sharks had over areas or estates, and the idea is everyone puts in, and when you need it you can take out a small amount out, thereby getting the money you need without being held to ransom over costly interest rates.

Although you don't hear too much about them in England, it seems almost all towns have got one, and i've never heard anything but good things said about them.

BungleGirl

Hi,

I work on a community project and one of the things we have done is set up a credit union.

They are really fantastic and they are all over the place. There is a search facility on the Association of British Credit Unions Ltd. website where you can put in your area and it will bring up the ones near you - www.abcul.org - the website also gives you loads of information about credit unions.

We set up the credit union in my area because there is a high number of people being targeted by loan sharks, and our membership is constantly growing. In Ireland, North America and the Caribbean they are really common - I think that in Ireland they are so big that they offer mortgages!

Some in this country are really big - for example in Leeds. Most of the others are low key and you may well not know about them. They are usually run by volunteers in community centres etc. The fantastic thing with a credit union is that you are judged on your track record with the credit union - not on anything you have done in the past.

You can also take out very small loans e.g. £100 which you can't do with a bank - this means that if you need shoes and school uniforms for your kids you can get the cash to buy them from the cheapest place and don't have to use club books or catalogues that are overpriced and have high interest rates.

Some credit unions offer a bill paying service where you work out your anual bills, you pay in however much it works out to a month, then they pay it direct to your suppliers (e.g. BT, British Gas).

All credit unions are a bit different - you usually have to save for a certain number of weeks before you can apply for a loan, you can usually borrow a multiple of your savings, often there are restrictions on the amount of your first loan.

It's a bit of a long term benefit - but if you borrow with a credit union, your money doesn't go out of your community (e.g. to bank shareholders) and as the interest is so low - you have more money to spend in local shops/businesses. Like I say this is a long term benefit but it does make a (small) difference to your local economy.

There are too many good things about credit unions to list - but ask away if there is anything in particular you want to know.

THE_LONE_RANGER_4

Hi, Join A Credit Union There Massive In Canada Also, Ive Been In Mine Since It Started Ive Had 7 Loans In Mine You Can Borrow 3 Times What Youve Saved My Biggest Loan Was 3000,i Save 100pound A Month ,min You Can Save In Ours Is 35pm,on Your Loan You Repay Interest On The Reducing Balance Only, We Get A Dividend Every Year Helps You Save And Get In To The Habit,when Youve Repayed Your Loan You Have What You Originally Saved Plus The Small Amount A Month They Take From Your Repayments Example
Savings.....1000
Borrow 3000....repay Over Specified Period
You Save 100pound Like Me 85pound Pays Your Loan 15pound Is Added To Your Savings Which Are Frozen For The Term Of The Loan
When You Have Repayed Your Loan Its A Great Feeling When You See You Have Your Original Savings Plus Extra Join One There Great Cu

kenshaz

My credit union is a Fire Service one and why I think it is special because,if I need money urgently I can obtain 3 times what I have saved immediately,no credit check and I know that I will be accepted.A special account for lifes ups and downs.Every -one should join one then they will get stronger .Flamesavers is the name of mine and if you are a Firefighter in Cheshire or Staffordshire join

kerry_lampard

I joined a credit union when i needed a short term loan for a deposit on a rented house. had no saving with them but my first loan was for £1000. you can pay as much as you want each month as long as the minimum payment is met. you can also pay it off early if you need too.

My local one allows you up to £1000 for the first loan then up to £5000 for the subsequent loans DEPENDING on your track record with them and your "share" balance (savings)

They are also good savings schemes. i know a lot of employers will allow you to have your savings deducted at source.

They are good if you have a poor credit rating or if you need a short term loan. the APR is really low so its better to take out a loan on a car with them than it is to take out finance.