CREDIT-UNION-LOANS-UK - All you need to know about credit unions savings and loans

So exactly What is a credit union ?



A Credit union is a cooperative non profit organisation usually run by local communities or by large companies,for example bacup credit union ltd and Cheshire council employees credit union Ltd,they work in a very similiar way to a bank in offering both borrowing and saving facilities for their members,a credit union is run by a board of its members,in its simplest form it basically takes money from some of its members who wish to save and then loans that money to other members who need a loan.

Are credit unions similiar to banks ?



Credit unions are similiar in the respect that they also offer savings and loans but there the similarity ends,they are totally non profit organisations run by a board of Members who offer savings with a set rate of interest and loan money also with a set rate of interest,the board is consisted of the credit unions members
who volunteer for the task of running it and who do so with no financial gain to themselves,a credit unions terms are usually much more flexible than what a bank would offer too,ie you could usually take out just a small loan to get by for a few weeks if needed or just open up a savings plan to get through the "joy" of christmas if required or alternatively you could open up a long term savings plan also,some credit unions are also able to offer consolidation loans,Mortgages and even funeral plans! if for whatever reason you are unable to get a bank loan or open up a savings account then joining a credit union could be an excellent alternative,in a lot of instances their interest rates are better too!



Will my money be safe in a credit union ?



Yes,almost certainly, it is highly unlikely that a credit union would collapse or fold but if this ever did happen to a credit union registered in England,Scotland or Wales you should be able to claim for compensation with the FSCS similiarly to how you would if a bank collapsed,the maximum amount that can be claimed though is currently £50,000.


Ok, sounds Good, how do I go about Joining a credit union



You can begin by checking your local community to see if there is a credit union near you,also if you work for a large employer make enquiries as they may have one running or may be interested in running one, also check out our credit union links page for a detailed list of credit unions,we will update this further as more credit unions become known to us.