Credit unions - anyone know anything about them?

Squidgy

Our local council has just started a credit union, it all looks very interesting. Are they ok???

Squidge

joannemc3

hi , my dad has been a member of our local one for years, he says its really good

milk

Me and my son save with a credit union and I have had no problems with them, and although I haven't borrowed money from them if you do the interest is pennies rather than pounds.

Worth looking in to.

Lola23

I think they are very good. I've been in one for a few years now and have had several small loans from them.

The one I'm in is through my work and money comes straight off wages to the Credit Union, and if you don't want to borrow anything you can leave your money in it as savings.

I believe the Council run groups are very good also. They can help a lot of people who for one reason or another can't or won't go to a bank for a loan.


:j

bjo_2

they have been in ireland both north/south for many years.
they are very good and are well regulated and are usually based in local
communities. their lending rates shame all the big banks.
they work for local people and are run by local people who you elect.
your savings are extremely safe and borrowing from them is usually cheaper
than banks.
extremely money saving but only for working class people.
no offence ment.
regards
bjo

lefthanded

bjo wrote:

extremely money saving but only for working class people....
bjo

Why do you think that? If your employer or local council runs a credit union scheme why not join that as well as any "mainstream" borrowing schemes you may have? Even if you only use it to save - and only save a small amount (£5 per month is usually the minimum), then you are helping to fund the scheme and so helping the scheme to provide loans for others less fortunate.

lefthanded

lynzpower

My local credit union loan is 21% APR

I dont know why everyone goes on about the low cost ness of them- make sure you check .

harpo1

Been a member for 20 years. Excellent value.
Based on individuals with a common bond - it might be the area you live in or the job you do - so its you & your neighbours helping each other. They were created to drive out loan sharks & have been very successful here in Ireland over the last 60+ years. . You borrow a set sum & promise to pay so much every week. The size of your first loans are often determined by how much you have in your savings - because this is community bank, if you default your neighbours in the credit union will lose. But every re payment is made up of a bit of capital loaned as well as the interest, so every week you owe a little less - and if things go wrong - so the APR can be a bit misleading. It is non profit making -so if things better than expected with investments then additional payments can be made to all the borrowers, reducing their debt. This happen last year in my credit union
And they include member's death benefits - a type of insurance for all borrowing members & that they encourage saving as well, as thats what used to fund the loans
All the Best

kenshaz

The credit union that I am with allows you to borrow 4x times what you have in savings,each year you receive a dividend,when you pay for a loan ,you must also add to your savings,the interest rate for the loan is set by the members,cannot go wrong really ,because you benefit in your dividend depending on the money received in loan advances.Power to the people.

No credit checks with experian etc,so you know that you will receive the money on a rainy day,no faceless individual makes a decision based on their criteria,for example if I had £1000 in savings,if my wife needed urgent medical treatment I could have the £4000 in my account as quick as a transfer.I use it as a form of medical insurance ,without paying the money to an insurance company ,and never benefiting,unless one of us is ill,it gives me options ,with potential for greater sums if emergency arises

I must add that in principle I am against private medical care ,but I want to make sure she is safe

gazza975526570

lynzpower wrote:

My local credit union loan is 21% APR

I dont know why everyone goes on about the low cost ness of them- make sure you check .

Although you may deem 21% APR excessive, which i agree it is but am able to get credit from mainstream lenders.

One of the reasons they are run is to protect people from extremely expensive doorstep lenders (1500%+ APR and the like) therefore in this respect they look great in comparison

kenshaz

21% ridiculous,cannot belive that a community based union is going to charge that sort of interest,please name the credit union,if your claim is correct