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Credit Unions

Credit Union

In today's tough times banks have tightened their belts. Loans have become more expensive, hidden fees have been introduced and savings are earning paltry interest rates. As a result loan sharks are making a tidy profit - so if you're sick of being turned away for a loan time and again turn to your local Credit Union instead!

Find my nearest Credit Union

What is a Credit Union?

A Credit Union is a profit sharing, democratically run financial co-operative which offers convenient savings and low interest loans to its members. The members own and manage their credit union themselves.

The three main aims of a Credit Union are:

To encourage its members to save regularly.
To provide loans to members at very low rates of interest.
To provide members with help and support on managing their financial affairs (if required).

What are the benefits of a Credit Union?

It is an easy and convenient way to save and borrow.
It offers very low cost loans.
Insurance at no direct cost.
It's a way to learn new skills.

Credit Unions can provide a focal point for a community by bringing people together, to work alongside each other for their own benefit and the benefit of the community as a whole.

Who can join a Credit Union?

Each Credit Union has a "common bond" which determines who can join it. This determines who can become a member of the Credit Union. The common bond may be for people living or working in the same area, people working for the same employer or people who belong to the same association, such as a church or trade union.

How much do I have to save?

However much you can afford. Getting into the habit of saving regularly is more important than how much.

How soon and how much can I borrow from the Credit Union?

Pound coins In general, most Credit Unions expect you to save regularly for about 12 weeks before allowing a loan and any loan will be related to your savings in some way. The amount you will be able to borrow will depend on how much you need, what you can afford to repay, and the Credit Union's policies.

Do you have an example?

The rate of interest you will pay on a loan will vary from union to union. It will also depend on how long you save with the union – the longer you save, the lower the interest rate you will pay. However, the table below is an examples for £300 and £500 if you wanted a loan immediately – 26.8% APR:

An example of how much you could pay at 26.8%APR
Borrow	# of repayments	Pay per week	Interest charged	Total paid
£300	52 weeks	£6.55	£40.33	£340.33
£500	52 weeks	£10.91	£67.28	£567.28

What should I do next?

Step 1 – Find a Credit Union that you would be able to join by meeting the common bond requirements (see table below)
Step 2 – Find out which services the Credit Union offers by contacting them. Remember that different Credit Unions offer different services.
Step 3 – Join the Credit Union if you are happy with the services on offer.

Where is my closest Credit Union?

Credit Unions in East Anglia
Name of Credit Union	Address	Telephone	Website
Colchester Credit Union Ltd	Co-operative Resource Centre, The Centre, Greenstead, Colchester, Essex, C04 3PX	01206 798823
Ipswich and Suffolk Credit Union Ltd	63 Austin Street, Ipswich, Suffolk, IP2 8DF	01473 690690
Lichfield and Southtown Credit Union Ltd	Electra House, 32 Southtown Road, Great Yarmouth, Norfolk, NR31 0DU
Norfolk Credit Union Ltd	South Norfolk House, Swan Lane, Long Stratton, South Norfolk, NR15 2XE	01508 533842	http://www.norfolkcu.co.uk/
Norwich Credit Union Ltd	Boardman House, Redwell Street, Norwich, Norfolk, NR2 4SL	01603 764904	http://www.norwichcreditunion.org.uk/
Pillgate Credit Union Ltd	East Norwich Area Office, 23 Pilling Park Road, Norwich, NR1 4PA	01603 619741
Rainbow Saver Anglia Credit Union	229 London Road, South Lowestoft, Suffolk, NR33 ODS	01502 584854	http://www.onesuffolk.co.uk/RSACUL/
Suffolk C C Employees and Pensioners C U Ltd	Endeavour House, 8 Russell Road, Ipswich, Suffolk, IP1 2BX	01473 584043
West Norwich Credit Union Ltd	Earlham West Centre, West Earlham, Norwich, Norfolk, NR5 8AD	01603 501301	http://www.wncu.net/

Find out more:

Visit the Association of British Credit Union website
Download Just the facts about Credit Unions.pdf (0.84MB)

Last updated: 23 January 2012