Credit Unions
Moderator: Peak Moderation
Credit Unions
In view of current events could I ask whether anyone at PS is a member of a credit union and if you are do you have any recommendations\information?
The most complete exposition of a social myth comes when the myth itself is waning (Robert M MacIver 1947)
I am, as is my other half.
The maximum you can invest is £5000 per account, our credit union is affiliated with the Yorkshire Bank which is local to around here. You must save regularly (weekly or biweekly) for 13 weeks before you can ask for a loan and loans given are based on the amount you have saved, so first loan is 1 x amount saved, second loan is 2 x amount saved, third and subsequent loans are 3 x amount saved. They encourage overpayment on any loan repayments as interest is charged only on the amounts you owe week to week. Interest is 12% apr, and they pay a dividend once a year based on the amount you've saved and borrowed.
When I asked last week about how safe the money was the chap said that if the Yorkshire fell over there would be a problem in securing money, but all the cash deposited was underwritten and because it's a paper based system and they can see exactly how much you have you would get everything back, he keeps a float in the credit union office to cover emerency loans so in a crisis we could get immediate help, but they are only open once a week, so that's immediate help on Mondays only!
Our CU is community based so it really does help people within my local area and I would fully endorse anyone thinking of joining one they are a really good asset to have in your community.
The maximum you can invest is £5000 per account, our credit union is affiliated with the Yorkshire Bank which is local to around here. You must save regularly (weekly or biweekly) for 13 weeks before you can ask for a loan and loans given are based on the amount you have saved, so first loan is 1 x amount saved, second loan is 2 x amount saved, third and subsequent loans are 3 x amount saved. They encourage overpayment on any loan repayments as interest is charged only on the amounts you owe week to week. Interest is 12% apr, and they pay a dividend once a year based on the amount you've saved and borrowed.
When I asked last week about how safe the money was the chap said that if the Yorkshire fell over there would be a problem in securing money, but all the cash deposited was underwritten and because it's a paper based system and they can see exactly how much you have you would get everything back, he keeps a float in the credit union office to cover emerency loans so in a crisis we could get immediate help, but they are only open once a week, so that's immediate help on Mondays only!
Our CU is community based so it really does help people within my local area and I would fully endorse anyone thinking of joining one they are a really good asset to have in your community.
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biffvernon
- Posts: 18538
- Joined: 24 Nov 2005, 11:09
- Location: Lincolnshire
- Contact:
Not a credit union, but the Co-operative Bank / Smile has some features more akin to CUs than the other banks.
Here's a neat account: http://en.wikipedia.org/wiki/Co-operative_Bank
Here's a neat account: http://en.wikipedia.org/wiki/Co-operative_Bank
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RenewableCandy
- Posts: 12780
- Joined: 12 Sep 2007, 12:13
- Location: York
Nice one! But this:biffvernon wrote:Not a credit union, but the Co-operative Bank / Smile has some features more akin to CUs than the other banks.
Here's a neat account: http://en.wikipedia.org/wiki/Co-operative_Bank
sounds worrying!Co-operative Bank "Pyramid" in Regent House, Stockport...
Spooky!!RenewableCandy wrote:Nice one! But this:sounds worrying!Co-operative Bank "Pyramid" in Regent House, Stockport...
http://www.powerswitch.org.uk/forum/vie ... 8&start=15
Andy Hunt
http://greencottage.burysolarclub.net
http://greencottage.burysolarclub.net
Eternal Sunshine wrote: I wouldn't want to worry you with the truth.
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PowerswitchClive
- Posts: 158
- Joined: 24 Nov 2005, 11:09
I have saved using a credit union before and generally found them interesting and I like the concept. The thing you have to remember is that most of the credit unions, bank with one of the major banks or building societies. If the bank failed that the credit union banked with, your money would be guaranteed by the FSA in the normal way up to £50K.
Don't fail into the trap of thinking that in someway your money is safer.
From a borrowing point of view, I think they are excellent, as you build up a credit history with them and not Experian. They take a sensible view, only lending small multiples that you can afford to pay back.
Don't fail into the trap of thinking that in someway your money is safer.
From a borrowing point of view, I think they are excellent, as you build up a credit history with them and not Experian. They take a sensible view, only lending small multiples that you can afford to pay back.
"All truth passes through three stages: First, it is ridiculed; Second it is violently opposed; and Third, it is accepted as self-evident."
Arthur Schopenhauer (1788-1860)
Arthur Schopenhauer (1788-1860)
Yes, absolutely agree, and for small amounts they are invaluable, there's no way a bank would offer me a loan for £70, but my credit union didn't blink when I asked.PowerswitchClive wrote:From a borrowing point of view, I think they are excellent, as you build up a credit history with them and not Experian. They take a sensible view, only lending small multiples that you can afford to pay back.