Credit Unions serve as an alternative to both the larger banking institutions when it comes to savings and loans but also present a cheaper alternative to many forms of high cost short term credit loans including online payday loans. There’s no doubt that big financial institutions lost significant credibility thanks to rate fixing scandals and some fairly reckless internal decisions and this seriously damaged the trust that many people had in putting their money in the hands of such imposing global names. Whether this leads to more people putting their money in credit unions remains unknown. Nevertheless it was recently published that credit union face increasing popularity and demand which contributes to a slow but sure continued growth. There are more credit unions out there and more of them offer affordable credit union loans. This is further encouraged by government and local councils continued investment in credit unions which should in turn lead to more people turning to them for savings and loans.
What is a credit union? A credit union used to essentially be a small not for profit organisation that was set up by a group of people who all had something in common. This was usually that they lived in the same area or were members of the same trade. However, in recent years credit unions have become much broader and much more commercial and most now offer their services to a wider range of people often via a website.
Does anyone use them? There are around 500 thriving credit unions in the UK at the moment and more than a million people in this country have become members of one.
What do they offer? Credit unions offer a range of products, including savings accounts, however where they’re really attractive is the short term loans products that they provide. Credit union loans are usually for amounts under £3,000 and they have strict affordability criteria, which means that you know you’ll only be able to borrow what you can afford to repay. As most credit unions are not for profit, the motivation is to make enough to be able to cover their costs rather than to generate huge profits and this often results in customers feeling like they’re being more fairly treated.
Are credit unions open to everyone? You will easily be able to find out whether you can borrow from a specific credit union in an area near you – read more about Credit Union Loans here. They are often a credit option for anyone who isn’t eligible for loans from larger institutions, or who doesn’t want to borrow from the bigger names in banking.
How do I find a Credit Union for me? At Cashlady we now offer tools to help you find a credit union if that’s the route that you want to take when it comes to borrowing. Simply click on this link and follow the instructions and you can find the right credit union for you.
For anyone who is looking to borrow short term loans or loans for a relatively small amount it really is worth considering credit unions as an option. Whether you’re wary of big lenders or you’re simply looking for a different channel for your borrowing looking at credit unions can considerably broaden your choices.