Credit unions offer affordable loans to support you
Credit unions are committed to the financial welfare of their members and will only offer affordable loans to those who they believe can adequately repay them.
That means members are not treated as a credit score and may still be able to borrow from a credit union even if they were refused by their local bank.
As affordable, ethical loans and savings providers, credit unions put the financial wellbeing of members at the very centre of their operation.
The money the credit union holds in savings is lent out to other members who need to borrow at an affordable rate, which benefits your community.
As social enterprises with no external shareholders, credit unions are able to offer loans at very competitive rates of interest.
During the past year a sample of 13 credit unions found that people in Wales saved between £13.5 million and £15.9 million in interest and fees by choosing a credit union over a payday lender.
Interest is charged on the reducing balance of the loan because you’ll pay less interest overall. When you borrow from a credit union, you can pay the loan back in different ways.
These include straight from your wages through payroll deduction, from your bank account by direct debit, or with cash at local offices or collection points. Some credit unions will offer you loans that can be paid back directly from your benefits.
Credit union loans come with no hidden charges and no penalties for repaying the loan off early.
Many credit unions also include free life insurance at no extra cost. In the UK, credit unions are regulated by the Financial Conduct Authority and the Prudential Regulatory Authority .