Can a Credit Union help you?

News – 28 July 2022

Credit unions are community savings and loan providers. Members can benefit because there are no profits for shareholders. They’re not there just for those who are struggling to get access to ‘ordinary’ bank products, they’re for everyone.

They will help you to take control of your money by encouraging you to save what you can and borrow only what you can afford to repay. Members pool their savings to lend to one another and help run the credit union and because this is done in a ‘not for profit’ way, the money is only used to run the service and reward members, not pay shareholders.

If you’re looking for a savings account, then a credit union will pay you a dividend, rather than a confirmed interest rate, which is dependent upon how well the credit union has done that year.

Credit unions can be a good option for when you’re looking for a smaller loan, like under £3,000. People can sometimes look to payday loans or doorstep lenders, which can sting you with extortionate interest rates. (For example, for a payday loan, you could be charged interest at an Annual Percentage Rate of 1,250%, so borrowing £500 for 30 days would mean paying back £620.)

Remember though, you should ensure you can repay what you have borrowed. If you are in financial difficulty and would like free advice, contact us on 0300 123 5544 and ask to speak to our Financial Wellbeing team.

These are two credit unions that are local to our customers:

Bedford Credit Union: www.bedfordcreditunion.org.uk

Give them a call on 01234 346352 or drop in to see them at 6 St Paul’s Square, Bedford, on a Wednesday morning – you don’t need an appointment. They’ve also got an App called Incuto, so you can join online.

Commsave is based in Northampton: www.commsave.co.uk

You can call them on 03030 402660 or email them at hello@commsave.co.uk. They’re open 9am to 5pm Mondays to Fridays and 9am to 1pm on Saturdays.

If you’re one of our customers and wish to join either of these, we may be able to help you pay the membership fee to join. Contact the credit union and let them know you have a tenancy with us.

To find another credit union, visit this website: www.findyourcreditunion.co.uk