Credit Union Loans and Savings

What is a credit union ?

A Credit union is a cooperative non profit organisation which is often run by local communities or by large companies,for example Hackney credit union and NHS employees credit union,Credit unions operate in a very similiar way to banks in offering both borrowing and saving facilities for their members,a credit union is operated by a board of its members,basically it takes money from a portion of its members who wish to save and then loans that money to other members who are looking for a loan therefore offering credit union savings and credit union loans services.

Are  Credit Unions Just Like  Banks ?

A Credit union is similiar in the respect that it also offers its members savings and loans but it has one major difference,Credit Unions are non profit making organisations that are run entirely by a board of their Members,these members
volunteer and are elected in the task of running the credit union for no financial gain to themselves,a credit unions main purpose is to offer loans and savings to its members at a set rate of interest and in a lot of instances this can be much more favourable than what a bank could offer,its also worth bearing in mind that a credit unions terms can be a lot more flexible than what a bank would offer you also,ie if you only required a small loan to tide you over for a few weeks because of a change of Job or you needed it for an unexpected car repair then its well worth seeing what  credit unions can offer you,alternatively you could start a long term savings plan with a credit union also,in fact some of the larger credit unions are also able to offer much larger loans and will even offer Mortgages though you should definitely shop around for the best deals available if you are considering getting a credit union mortgage, in Instances whereby you are unable to get a bank loan or possibly open up a savings account then joining a credit union could be an excellent alternative,in a lot of instances their interest rates are better than banks too but again you should definitely shop around as credit unions interest rates do vary from credit union to credit union.

Is it safe to Save Money With a Credit Union ?

Credit Unions are regulated by the FSA so Yes,almost certainly, in the unlikely event that a credit union did collapse you would be entitled to claim compensation from the FSA,just like you would be able to if a bank collapsed.

How Do I join A Credit Union ?

Firstly you need to find a credit union that you are eligible to join,most credit unions have certain criteria that will only allow you to join if you live or work in a particular area or belong to a certain organisation or workplace,a good place to start looking for a credit union would be to check with your employers if you work for a large company as to whether they have a credit union,for example, the NHS Credit Union or do a search on the internet to see if their is a credit union operating in your local area,there are currently over 500 credit unions operating throughout the UK so theres a very good chance you will be able to find a credit union operating near you.