Pay as little as 1% interest on a loan - Credit Unions

countrymouse

I have been a member of a credit union for several years now and funded part of my wedding and honeymoon Cruise down the Nile, bought a horse and a horse trailer with loans from them have only paid 1% interest on the loans!

Credit Unions offer savings and great value loans, they are local, ethical and know what their members want. Members pool their savings (you usually have to save with them for around 3 months before you can have a loan or like me I put a chunk of money in and got a loan almost immediately) from which loans can be made (usually double what you have saved) and even better annual dividends are made to members!

You can find out more about Credit unions by looking at ABCUL the Association of British Credit Unions website. If you want to search for a credit union in your area look at :

https://www.abcul.org/page/members.cfm

Happy cheap Loans and New Year!

Pam

wacko911

If this was the case why not take out the biggest loan they will give you, stick it in a nice little earning ISA and earn 5% tax free - nett effect 4% gain?

While I have nothing against Credit unions, you may find their actual interest rate a lot higher (My mum pays 10% on her loan) Plus her 'savings' are locked until the debit is repaid, in their very 'low' earning saving account.

10% is still very cheap for someone who isnt open to the mainstream low rates. (poor credit history/low income)

countrymouse

It is wise to check out what the individual CU's charge before taking out a loan, I dare say they differ from area to area, but as you say 10% is a lot cheaper than what companies like door step loans and loan sharks will charge you if you have poor credit scoring. The CU I belong too, you dont even have to have a bank account you can pop into the office and make payments and save as little as a £1 a week which makes more sense to those on benefits rather than pay the doorstep seller extortionate interest rates out of what sometimes is sheer desperation at times like xmas or buying kids school uniforms.

blairy

hi im a volenteer for the cu and the rates are alot cheaper than alot of places and they do ask you to save at the same time as paying of your loan, so that you can get the habit of saving, which cant be a bad thing,im in a bit of a state at the moment but its nothing compared to some that come in to the cu, on a brighter note hello to all and a happy new year chrissy