Some guys like short legs on a women, some guys like long legs on a women, me?......I prefer somethi...
Some guys like short legs on a women, some guys like long legs on a women, me?......I prefer something in between ;-)
Member since:17.06.2000
Reviews:120
Members who trust:69
Credit unions are becoming more and more popular with savers and borrowers who are disillusioned with the de-personalisation of the larger banking institutes.
There are literally hundreds of small , local credit unions all over the country and a growing number of larger, Regional ones.
What is a Credit Union?
A credit union is a non profit making savings and loan organisation, usually run by volunteers (if small and local) or run by a small dedicated staff if one of the larger regional ones. Local CU’s can be joined by anyone living nearby, larger CU’s are usually affiliated with a large organisation like a district council
and membership is usually limited to council employees and their families (Which can mean tens of thousands of members).
When you join a credit union you usually pledge to save a certain amount each week/fortnight/month, your savings in a CU are called shares. After a set period of time (usually two or three months) you can apply for a loan against your shares, the amount you can borrow can vary from Credit Union to Credit Union but usually it is about five times the amount of shares you have invested in the CU.
Here comes the clever bit. Once your loan has been approved you will be given a repayment schedule, your repayments to your loan will be split between the loan and your share account. In other words, as you pay back your loan, your shares continue to grow at the same time. Sooner or later your shares will be more than the amount still owed on your loan, you can then do a “Share transfer” to your loan account paying your loan off early or simply continue paying the loan back and watch your shares grow even further.
If you have no loan to pay back, but have shares, you can withdraw the shares at anytime, just like any other savings account.
Interest is paid on the outstanding balance only, as your loan reduces so does the interest payable on it. The interest on a CU loan is around the 12% per annum mark, that’s 1% per month on the outstanding balance, which is very competitive with the major lenders, and considering that it is not a fixed rate over the loan period it’s extremely good value.
Larger Credit Unions will automatically give you life cover on your loan and insurance against illness or redundancy at no extra cost, they also do secured loans on property.
Being a credit union member can be rewarding too, the one I am a member of has given its members an annual dividend return of 5% gross. It’s always nice to look at your account and see a substantial amount has been credited to your account just for being a member.
Many of the larger CU’s have web sites, here you can access your accounts, download newsletters and forms or apply online for a loan or share withdrawal. You can also deposit money into your account via a debit card.
For the last six years if I have needed a loan for anything I have used the Credit Union, rather than my Building Society, simply because I get a better deal, I save as I pay back and there is no early repayment penalties, it’s also a more personal experience, the credit union will process your loan over the phone, by post, or via the web and they are usually very quick to place your borrowings into your Bank or Building Society account.
Listed below are few web sites for you to visit where you can learn in more detail just how much sense it makes to join a Credit Union. Thanks for reading.
www.scotwest.co.uk – Credit Union for Inverclyde and Strathclyde Local government workers www.abcul.org - the website for the Association of British Credit Unions Ltd. www.woccu.org - the website for the World Council of Credit Unions www.creditunion.ie - the website hosted by the Irish League of Credit Unions www.glasgowcouncilcu.com - Glasgow Council Credit Union www.capitalcreditunion.com - Capital Credit Union, Edinburgh www.scottishpolicecu.co.uk - Scottish Police Credit Union www.vcu4u.com - Voyager Credit Union,Manchester www.leedscitycreditunion.co.uk - Leeds City Credit Union
How helpful would this review be to a person making a buying decision? Rating guidelines
Never used one myself, not sure if they have them around here. I end up going to the fat cat banks.
polgara1979 08.04.2003 12:08
My partner joined one of these just before christmas so we could get a few extra presents and I have to say it's been brilliant. We've nearly paid the loan off already between us, although I'm not the member. I'd like to become a member of one myself so am looking around at the moment. (My partner is a member of the Co-op Credit Union and I don't think I'm eligible to join).
Advantages: Low cost loans for regular savers, free insurance on both savings and loans. Disadvantages: Maximum repayment for loans is 3years and car loans 5 years
kimberley13 30.10.2003 ·
Read review
Ciao members have rated this review on average: helpful
Review of Credit Unions
very helpful by (100%):
