First Published:
10/07/2023
Credit Unions – A safe, approved way to lend and save money
What is a Credit Union?
A credit union is a ‘not for profit’ co-operative where all members pool savings and provide each other with low interest credit. Members of a Credit Union are people who live in the same area, work for the same employer or belong to the same group such as a church or trade union. These unions offer a diverse range of online and in-person services to suit their members’ needs and affordability, including:
- Savings accounts
- Loans
- Cash ISA
- Insurance
- Pre-paid debit cards
- Mortgages
Benefits of being part of a Credit Union:
- Credit unions have lower interest rates (maximum 3% per month) – see Association of British Credit Unions (ABCUL) for a handy loan calculator.
- As a ‘not for profit’ service, the focus is only on benefitting members – a safe, reliable way to lend and save money.
- Members receive dividends on their savings every year.
- Small savings per week soon accumulate and are protected up to £85,000 per person by the Financial Services Compensation Scheme.
- If you struggle to get a traditional loan you may be granted a credit union loan.
Read more money advice articles on our website here.
If you want to speak with a member of our Money Advice team please contact us via email: Money.Advice@JJHousing.co.uk
Further information and finding a credit union:
The following sites provide more information and assist you to locate a credit union.