Credit Union Loans

dannynixon

Hello, I have just finished a conversation on the phone with my mother-in-law and she has just been telling me about a credit-union loan she took out a bit ago. Her explanation of what it is was very vague and after reading the article on Wikipedia, I just can't get it.

I am not after a loan but I am just very interested with the credit crunch in full swing just as another option.

Does anyone have any experience on them or have any knowledge? This is not me asking for a loan, just maybe a place to share a little information as I have never heard of them before this....

*MF*

Hi ... everything you may ever need to know ...

Here:

http://www.abcul.org/page/index.cfm

dannynixon

This seems quite good really, seeing as though I could not get a decent rate at a bank anymore.

Do they complete a credit check seeing as though you are part of the union?

WeeMo_3

As far as I know-
the credit union is owned by the community that puts money into it
- be it a town based - occupation based etc

dannynixon

That sounds really good because I struggle to save too so maybe there is actually a point in saving. I am eligible to join as I work for my council and my mother in law is in the union.

Thanks for the advice *MF* and WeeMo, appreciated.

lavendar7764

:jYou are quite correct - Credit Unions are owned by the members, each person owns a share. The CU community involves all of it's 'shareholders' in all the aspects of the CU and how it performs. My mother (Treasurer) & brother (administration) are involved with their local CU in Brockworth in Gloucester but, I cannot join because I am not of the 'Common Bond'. I live too far away. The 'Common Bond' is that you must live or work within the parameters set by the CU. Usually there is a post code restriction but, if you work in hospitals, the police or fire service then you will have access to a CU. Your limit to join is a £1 and you must, first and foremost, remember that this is a way to save money. You must commit yourself to only what you can afford each month but, it can be as little as a pound. You can also have accounts for all of your children/grandchildren which, is a great way for them to start to learn about looking after their financial future.

You will be able to have loans from them to within a certain limit usually 3 or 4 times what you save and when you are paying back the loan you must also still continue to save what was agreed before. As was correctly stated, this is great for emergencies such as replacing a broken washing machine/cooker etc. In my case, my wonderful mother was able to get a loan to help me find a deposit for a place to live when my 20 yr marriage broke up!

There is a CU in Reading, Berkshire but, unfortunately, I live outside of the city. However, if enough people apply to them to expand they will then be able to create the Berkshire Credit Union which will cover everyone who lives and works within Berks. This should actually happen everywhere if enough of us apply pressure to the right people.

PLEASE PLEASE do get involved - in this age of Credit Crunch and financial hardship this will be the only way that most of us survive and it will ultimately, help us to recover and learn to look after ourselves financially, to be more aware. I tell everyone I can about the CU because I can see for myself how my mother and two brothers have benefited from this and I would very much like to have the same opportunity. Right now I do not live or work within the parameters set by RCU but I would if it were BCU.:T