Home

Loans. Why more of us are turning to credit unions.

These days items of not just want, but need,

Don't Let Your Personal Loan Become a Personal Moan: Good background reading before you take out a loan
Self employed loans. When being self employed is the impediment: If you are selfemployed and want a loan, this article is a useful read.
Consolidation Loans for Tenants. Empowering Tenants with a Method to Counter Debts: Tenants will find it harder to raise a loan but its not impossible. This article explains
Remodel your Home. Take a Home Improvement Loan: A good introduction if you want a loan for home improvements
Adverse Credit. When is a credit history described as adverse ?: When do have an adverse credit rating? The situation is far from clear but this article sheds light.
IS YOUR LOAN COMPANY RIPPING YOU OFF?: Despite what they might profess, money lenders with sky high interest rates are preying on the people who are in the worst position of anyone else to pay the cash back. But no more, says the Competition Commission, which is standing up to these ‘Loan Sharks' and taking a stand.

tend to be becoming more and more expensive and with interest rates constantly rising at the banks, credit unions are becoming the more financially attractive alternative.

Credit unions are financial co-operatives owned and controlled by their members who combine savings to offer low-cost and flexible financial products to their members.

Each union has a 'common bond' which determines who can join. A 'common bond' is simply having something in common with the existing members { medical insurance articles } such as living or working in the same area, work colleagues or people who belong to the same association, such as a church or trade union.

If you are not able to save every week or month or have a poor credit record, a credit union may be more sympathetic to your needs than a larger financial institution would be.

Credit unions welcome irregular savers, and all savers usually get the same percentage dividend on their savings aiming to pay a dividend on savings once a year to all their members. This can be as much as 8% of the amount that people have saved, { mortgage trail } but is typically 2% or 3% depending on profits.

As mutual societies, credit unions are non-profit organisations and must each year set aside enough money to ensure they remain financially stable. All profits are used to make interest rates as cheap as possible for borrowers and rates of return attractive for savers.

With a credit union you can save as much or as little as you like,< Article on life insurance quotations > weekly, monthly or as often as you wish. You can pay in at convenient local shops or collection points, or direct from your wages.

You do have to prove you can save before you can take out a loan with a credit union. Once you have satisfied this requirement, the total amount you can borrow from your credit union is based on what you will be able to repay. They can also tailor their services to suit your individual circumstances.

The interest a credit union can charge on a bad credit loan is limited to 1% a month. So a loan of £100 costs no more than £1 each month in interest.

Typical interest rates for loan repayments are just 6% and members can also automatically have free life insurance.

The main act of Parliament governing credit unions is the Credit Unions Act 1979. { Insurance articles }This sets out the objectives of a credit union stating that credit unions must have their accounts audited annually by a qualified auditor and be insured against fraud or theft.

Click here for part 2