Credit Unions?

angel5

I have seen a few suggestions on here about credit unions. I had never even heard of them. We need a smallish loan of about £2000 to get all our creditors up to date (and stop demanding letters) after which i am going to start snowballing (I hope i have been picking up the terminology correct!!). I have found a credit union in my area. Are they safe enough to borrow from? I see you save with them also which i think is a great idea for any unexpected MOT bills etc. Has anyone on here used their local credit union? x

Tixy

You may struggle to get a loan for that much from your local credit union especially if you haven't started saving with them ye, especially for debt consolidation. Some unions will specifically lend a small amount to help people get out of the payday loan cycle.

You should also be aware that they are not the most competative interest rates (they cannot charge more than 27%) so higher than main stream credit but lower than payday loans/provident etc.

Only approach any credit union if they are part of ABCUL.

Whilst your post doesn't give a lot of information you may be better considering a debt management plan which may be more suitable than a loan. Have you taken free professional debt advice from one of the recommended organisations?

property.advert

You might find that they require you to have saved a regular amount with them monthly for 6 or 12 months at a minimum before applying for a loan and then find your loan may be linked to your savings amount. Members helping themselves really, rather than lenders of last resort.

kingfisherblue

I'm in a credit union and it is as property,advert says - you need to save regularly before you borrow. I joined it last year as it is convenient and a collector visits the local library once a week. That way, I found I could save without having to set up a standing order (I save what I can afford each week) and I don't have to pay petrol or parking fees to go into town.

I've not needed to borrow, but I think it is linked to how much you save and how regularly.

stellagypsy

Hi - re Credit Unions - we have one via work, I have used it a lot. Ours used to have a savings period qualification before you could take a loan but doesn't now. I use it for savings and loans and it comes straight out of my salary so I don't miss it. Just make sure you are eligable for the CU (most have some kind of affiliation qualification for membership like working for a certain type of company or belonging to a certain union, etc) and that it is a properly regulated CU and you will be OK.

HTH, Stella x

kingfisherblue

For the CU I am in, you have to live or work within a particular area of the town.