Credit Unions

cuddlymarm

Hi

We move to Reading in 3 weeks time and I have noticed that they have a credit union available to anyone who lies in Reading. Do any of you MSers use a credit union and if so is it different in anyway to say saving with a building society?
We can't get credit at the moment (OH is BR) and don't actually want it ever again but we do need to start saving again and I was wondering whether this may be a good option.

Thanks for any help
Cuddles

angelflower_2

I dont have a huge amount of experience with credit union but I have joined one which is through my work and I put away the holiday and christmas money. I am looking at it as a savings account rather than an option to take out credit.

The thing I like about it is the money come straight out my salary and it is more hassle to take this out so therefore I am less likely to dip into it than if it was in the bank or building societly

masonsmum

I use a credit union through my employer as well and again use it to save for Christmas. I pay £10 a week and they pay small amounts of interest and a dividend a couple of times a year.

Good way to save if it comes straight off your wages.

4littleone

Hi,

i love credit unions!
I joined one a little while ago for a number of reasons. I wanted to be able to save with an ethically minded organisation, i wanted to have access to small amounts of credit if an emergency arose (ie dead washing machine) without having to use a credit card etc and i wanted to do something that would have a benefit for the local community.

I save a small amount each month and have had a small loan for a specific reason as well. The way it works is that if you do take out a loan you have to keep saving a minimum amount as well as pay the repayments so you end up with more in savings than you borrowed if you see what i mean. YOu cannot withdraw your savings whilst repaying a loan in my union but they all have slightly differing rules i believe.

The same rules apply to your savings in a crfedit union as to banks etc, ie up to 50k is protected if the organisation goes bust.

RAS

They pay a small interest rate on saving and charge a higher interest rate on loans but compared with the sub-prime lenders they are very cheap. They do look at afforability but are designed for people who are excluded from mainstream credit.

I would certaily recommend one as both a savings vehicle and as a way of ensuring that you have access to low levels of cheap credit if you need it. Perfect for emergency breakdowns or to help with unexpectedly high bills.

debrag

who do the loans work, are you credit checked? and do you need a certain amount in your savings?

*MF*

Info on Credit Unions here:

http://www.abcul.org/page/about/intro.cfm

And ...

Go here:

Credit Unions: Official MoneySavingExpert.com Discussion

http://forums.moneysavingexpert.com/showthread.html?p=15765555#post15765555