What is a credit union?
Credit unions are community savings and loans organisations run by and for their members.
Saving and borrowing with a credit union may be particularly helpful if:
- your income is low
- you have a poor credit rating
- you only need to borrow a small amount of money for a short while
Benefits of joining a credit union
As a credit union member, your savings are protected and you also have access to affordable loans.
By law the maximum loan interest credit unions can charge is 3% a month or 42.6% a year APR. This is much cheaper than borrowing from a payday lender. It is also a much safer alternative than a loan shark.
Like banks and building societies, credit unions are regulated by the FCA (Financial Conduct Authority).
Read more about credit unions on the ABCUL (Association of British Credit Unions) website.
Find your nearest credit union