Would you ditch your bank for a credit union?

I was thinking of joining a local credit union related to my job and I think you’ve persuaded me. Cheers.

Thanks for that! May also be worth considering that as a long-standing saver of a Credit Union, you will become eligible for extremely low-cost loans which will beat most banks. For instance, at our CU, we recently offered a car loan of £7,000 at 6% APR to a long-standing saver, beating even the headline rates on offer from most High St banks. Long-standing customers of banks will often be offered good deals too but I think it’s prudent to spread your money and increase your options.

People with some spare cash to save may not want to ditch the convenience they get with banks but they could definitely benefit from having a Credit Union account too, getting the “double dividend” of a monetary dividend and a community benefit at no cost to you. Time everyone thought again about Credit Unions maybe?

Hi Mikhail, good to know you’ve managed to find some good deals on the High St. Perhaps you’ve been lucky or maybe you have a larger loans or are able to lock up your savings for a period of time. Locally, we haven’t been able to find those sorts of deals from any High St banks for people who need immediate access to their savings and especially those who are not presently a customer of the bank in question. Credit Unions perhaps won’t suit everybody and they’re obviously not your first choice but I do think people should at least check out what their nearest CU has to offer before making their mind up about what works best for them.

ive been with my credit union over a year and would recommend them. i have a loan to cover cmas which on 300 i think i pay 30 interest. i have also opened up accounts for my kids. i put money in weekly. the only downside is its not easy access as the giro needs 2 signatures. on a plus it stops me spending. they have a main base and each day of the week they also have outposts, for want of a word so basically u can see an advisor where you live. i do have a normal bank account for my standing orders etc but i think if more people used little banks taking money away from the big wigs they would have to take notice. the more people invest in credit unions the more interest we as savers get, bonus.

Now I understand Richard! There are some Credit Unions offering payday loans (London Mutual is one) at low rates, just to resolve the immediate problem while the person works on the rest but many Credit Unions don’t have the resources to do this.

Older people can also be tricky for smaller Credit Unions because the life insurance we pay for to cover the loans and savings of members won’t cover people above a certain age. I don’t know which Credit Union you approached but it may be useful to talk to them directly about the needs of the people you’re helping, or work in partnership with a local elderly care charity and the Credit Union. There may be other Credit Unions that you could also try.

Some of us have developed partnerships which can help to underwrite more difficult loans. The standard payday lender doesn’t appear to care what the person’s circumstances are, despite everything they say and makes the most money if people pay late or default so it’s rarely the answer for people who are really struggling, even though it may seem like a lifeline at the time.

CAB’s (and other free) money and debt advice services will contact the creditors and help to get them off the backs of people who are scared to open the post or answer the phone and sort out a repayment plan that will see people straight in the end, in nearly all cases.

You’re right that it’s not a loan, but it’s not turning them away in the sense that I felt you’d experienced as it may be the best solution for the individual concerned. If our Credit Union believes somebody cannot afford a loan big enough to resolve their problem, we will usually refer to CAB. If we refer to CAB, they’re seen within 7 days and the process of sorting out their problem starts immediately, along with sleeping at night again for many.

Please don’t give up on Credit Unions, they’re all individual and it pays to work with them to develop the kind of service you want if you don’t think it’s offered at the moment.