Query about Credit Unions

[benjy48]

Hello,

 

Has anyone had any dealings or experience with credit unions. I came upon this website - ABCUL and wanted to if anyone with a poor credit rating has applied and what was the response.

Its just that I do not want to ask if there is a possibillity of them saying a big fat NO!!

Thanks

[Conniff]

Credit Unions usually require a reliable savings record before you become eligible for a loan.

 

Their main aim is to encourage you to save.

[Gilbert_O'Sullivan]

Credit Unions usually require a reliable savings record before you become eligible for a loan.

 

Their main aim is to encourage you to save.

 

I remember when banks were like this.

 

About 30 years ago I asked my bank for £400 to buy a second hand car but the manager said I did not have enough evidence of savings so declined.

 

Why the hell would I want to lend money if I was a saver?

[Conniff]

I remember when banks were like this.

 

About 30 years ago I asked my bank for £400 to buy a second hand car but the manager said I did not have enough evidence of savings so declined.

 

Why the hell would I want to lend money if I was a saver?

 

They probably changed their tune when they realised they could make big whacks from customers when they went overdrawn.

[angel_1]

hiya benjy48

 

our family are members and yes, you do need to save i recall at least 3 months worth, if i can recall correctly from my union (so long ago my first)

 

but do make sure you contact your local one perhaps via your council site

 

then they will explain their proceedures correctly

 

but from my own personal experience,im finding them brill, mine allows that you save regular i have set up a sto each friday for my savings amount and then when i had a sum for example 500.00 saved, after the qualifying saving period, i was able to be loaned twice my savings amount, once id paid that i then took out 4 times my savings amount, of course i was still saving each week

 

but im looking at getting rid of my debts and then i will only source this for any future big needs, as loans, however my union apr is 12.7 but of course i tend to pay back as much as i can each week and thus you will only be charged monthly the appropiate interest on the remaining amount each month

 

does the above make sense - hope ive not confused you

 

i urge you to really look at it and view for your family circumstances

 

very friendly volunteer collection points and they are under fsa guidelines too

 

any questions pls ask, take care ciao for now maz

[legalpickle]

The very friendly bit depends on your credit union.

 

Credit Unions can only offer their services to certain target groups. For example, there's a new Credit Union called Enterprise that deals with members of the Federation of Small Businesses. River Valley Credit Union deals with those who reside [or work, I believe] in North Manchester.

 

Credit Unions are obliged to cover a certain target group and cannot offer services to anybody else.

 

They are of course regulated by the FSA, come under the FOS complaints procedures and guaranteed by the FSCS for savings.

 

The primary service of Credit Unions is savings and they only offer loans after minimum periods [usually 3-6 months]. There is normally a nominal joining fee of £1 [or thereabouts] and you must have your account in credit of at least £1 [or thereabouts].

 

Loans are given only under certain criteria and proportionate to the savings at the time the loan is requested. In addition to paying the loan off you must also save, normally £10/weekly.

 

There are Credit Unions for certain companies staff, local areas, members of organizations, professionals in certain fields, etc...

[Lilythepink]

Go for it, and join. It is true that you have to save first, but they do not check your credit rating, which is a boon, when you have a bad one.

I will go to them instead of the bank for loans etc.

They don't judge you, and are great.

Lily

[legalpickle]

Go for it, and join. It is true that you have to save first, but they do not check your credit rating, which is a boon, when you have a bad one.

I will go to them instead of the bank for loans etc.

They don't judge you, and are great.

 

Lily

 

Again varies from Credit Union to Credit Union. I've experienced some Credit Union's that are a nightmare and others that are amazing.

 

If I remember correctly a couple of months ago somebody was on CAG with a problem with a Credit Union that had sent his loan to a DCA when he had more in his savings account that in his loan account!

 

A blanket "they're great" is misleading and wrong. Not all of them are great. Yes, some are, but not all. Just like some branches of some banks are great. And some people would say some Building Societies are great.

 

In addition, some Credit Union's do now credit check customers, especially before granting loans.

 

Also, some Credit Union's are becoming more like banks allowing you to withdraw money immediately, but most require 48 hours to 14 days notice [most 5 working days I believe].

 

Finally, most Credit Union's have a very small amount of places from where you can pick up and deposit money. More and more are now giving cards - which most are charging for, unless you have a loan - that allow you to pay in almost everywhere, but there are still a lot that only allow you to pay in or withdraw in certain places, like banks, but a lot more limited.

 

Also, whilst saving with them consistently gives you the chance to get a loan, in these markets, normally at relatively reasonable interest rates [but till you get a loan will be 6 months down the line], if you want to save, you can get higher interest by using some of the better cash ISA's and NS&I savings accounts.

 

Definitely consider it, like any financial service provider.

[angel_1]

hiya all

 

yes i do take on board others comments after my own posting, and i appreciate all the other information that i did not know from other unions

 

like i said from my own experience ive found them brill, but of course everyone has to check it out for themselves

 

yes mine originally started for the people in our borough, or in set proffessions, whether it changes in the future at the moment i do know other things are being looked at

 

you need to check out all the details and what yours offers you and then especaillly like legalpickle says consider it as any financial service provider

 

depends what you really want to achieve short and long term

 

checking it out is what you must do for yourself and your personal circumstances only then you can see if it useful for you and your family

#

good luck in whatever you decide

 

have a good weekend all ciao MAZ

[oopsadaisy]

Go for it, and join. It is true that you have to save first, but they do not check your credit rating, which is a boon, when you have a bad one.

I will go to them instead of the bank for loans etc.

They don't judge you, and are great.

 

Lily

 

Leeds Credit Union checks......just put my loan application in today, I fully expect their computer to explode when they do my credit searches.