Credit Unions

AJMY

Dear Martin,

This is my first post however on reading your recent e-mail concerning short term borrowing, pay day loans etc. I was surprised that credit unions where missed! Some years ago I lost my job and had to take a two thirds pay cut to get back into work. The local credit union where fantastic and provided me with some funding and in my opinion based on my personal experience, there, is no better way to borrow. They treat you as a human being, not a money making piece of meat. Now I'm getting to a cynical age but would ask that whenever loans are mentioned credit unions should be top of the list. As a former board member I am sure my credit union would open it's doors to talk to you.

jerry111

Credit unions are a small, but constant presence in the financial services industry. Credit unions hold about 6.7% of household financial assets, a market share that has not changed significantly in over 25 years.

andyf3050

Hi AJMY,

I totally agree! The local credit union is a fantastic way of saving and borrowing with low interest rates on loans. A friend first pointed me in the CU direction a few years ago and since then, no matter where I've moved to (Manchester, North Wales, Lowestoft and now Essex) I've always saved through the CU and had loans too.

I would highly recommend everyone join their local credit union and see the kinds of benefits they can expect.

Thanks,
Andy

sheilds

I have to add my voice to singing Credit Unions praises.
If you really need to borrow money they offer really low rates and are a an organisation you can trust. You do need to join and save small regular amounts before you can be considered for a loan.
Our local one offers additional features such as a dividend on your savings, your loan will be paid off when you die and an additional payment to your family for funeral expenses.
(Sorry if thats a bit morbid but a fact of life none the less.)

antrobus

jerry111 wrote: »

Credit unions are a small, but constant presence in the financial services industry. Credit unions hold about 6.7% of household financial assets, a market share that has not changed significantly in over 25 years.

In the USA.

Unfortunately credit unions are much smaller and less significant in the UK.

AJMY

Yes credit unions are small mainly down to a lack of advertising due to funding and other issues. However the forum comments so far do explain the extra services they offer along with FSA Savings protection. The more people who realise that credit unions are out there and offer a great personal service the more people who will be saved from payday 2000% loans. We need forums like this and other social network sites to promote this safe, secure and ethical source of lending.

andyf3050

AJMY wrote: »

Yes credit unions are small mainly down to a lack of advertising due to funding and other issues. However the forum comments so far do explain the extra services they offer along with FSA Savings protection. The more people who realise that credit unions are out there and offer a great personal service the more people who will be saved from payday 2000% loans. We need forums like this and other social network sites to promote this safe, secure and ethical source of lending.

The only thing about the credit union is that some geographical areas are not covered so joining the one closest to you isn't always possible. This would change if more people became involved and setup there own credit union branch to cover areas that don't fall under existing branches. I'm sure there is lots of support from the likes of ABCUL if anyone wanted to take on a venture like this.

Payday loan companies should be banned...! But, as long as there is vulnerability, these piranha's will make a lot of people a lot worse off!

My credit union will give you a loan amounting to 3 times the amount you have saved for a first loan (£300 gets you £900 for instance) and the interest is really low. This means that your monthly (or weekly) payments are affordable. Makes sense...!

antrobus

AJMY wrote: »

Yes credit unions are small mainly down to a lack of advertising due to funding and other issues. ...

Credit unions are quite small in the UK for a number of reasons. One of them being that we have (or had in many instances) other mutual customer owned financial institutions that performed much the same function i.e. Building Societies.

But the real point about credit unions being quite small is that they are often very picky about their customers and tend to shy away from having anything to do with the kind of people that 'need' payday loans.

Stuart_W

antrobus wrote: »

But the real point about credit unions being quite small is that they are often very picky about their customers and tend to shy away from having anything to do with the kind of people that 'need' payday loans.

Not sure what you mean.

Credit unions can offer fantastic access to financial services, saving and borrowing, where often main providers are not interested. Volunteers are sometimes available to have a chat with folk who can begin to sort out their finances when big banks aren't interested.

If you mean credit unions won't instantly give any Tom, !!!!!! or Harry a loan just because they instantly "demand" one, then that's the whole point. Someone that thinks they "need" a payday loan is much better served by a 15 minute chat and a cuppa with a credit union volunteer. That chat may end with them leaving to go to their bank to ask for an overdraft, an alternative suggestion to deal with their instant "need" for that £100, maybe their first ever savings account with £1 in it, or perhaps an appointment at the CAB. That's not shying away in my language. That's tackling things head on.

Anyone can join a credit union where they fit with the identified common bond of the union - this might be geographical (such as mine, Rainbow Saver Anglia, which covers Cambridgeshire, Suffolk and Norfolk) or it might be occupational (such as London Taxi Drivers' Credit Union).

dazzaofdagenham

i am about to apply to my credit union for a loan, do they credit check you? I have been with them for over a year and have saved about 500 pounds...I wish to borrow about 900 pounds to pay for site visit and plans for a house extn

AJMY

Hi, credit unions do sometimes do a credit check but they take other factors into consideration mainly outgoings v income. They also take benefits into consideration.

The fact you have commited to saving regularly is a huge plus point.

Apply for your 3x loan I was like you at first, reticent, but my cu have been amazing. As with most things in life it's about building relationships and above all being frank and honest