Credit unions explained

Do you need a small loan to pay off your arrears? Do you want ideas on how make the most of your money? Then a credit union could be the answer you’re looking for.

A credit union is a not-for-profit financial co-operative, which offers a convenient savings and low interest loans service to its members. It’s set up by members with a common interest such as living in the same area, working for the same organisation or belonging to the same church or residents’ association.

Credit unions can be an alternative to pay-day-loan companies and banks. Many banks won’t give you a loan under £5,000 and pay-day-loan companies can charge you an extortionate amount of Interest. They have a cap on the amount of interest they can charge on their loans of of 3% a month or 42.6% a year APR.

Credit unions also don’t let their members take out loans they cannot pay back. They assess their income and, in some cases, how much they’ve been able to save.

Why they do exist?

Credit unions aim to:

• encourage all members to save regularly

• provide loans at low rates, and

• help members in need of financial advice and assistance

We work with a number of Credit unions in London.

If you live in Brent or Ealing, you can contact the Credit Union for Brent and Ealing (CUBE) by calling 020 8756 3864.

If you live in Kensington, you can contact Your Credit Union by calling 020 7605 6341 or emailing info@yourcu.co.uk