Credit Unions

Credit Unions are financial co-operatives, owned and managed by the members who use them. They offer an easy way to save, access to low cost loans and a range of other benefits. Find your nearest credit union. Search for credit unions by county and see them on a map.

Membership of a credit union is based on a ‘common bond’, usually linked to where a person lives or works. Both adults and children can become credit union members.

Members of a credit union save in a common fund. This fund is used to make low interest loans to the credit union members. All interest on loans repayments is reinvested in the credit union and nothing leaves the community.

There are many benefits to joining a credit union:

• Access to low cost loans
  A credit union loan is usually the cheapest way of borrowing £2,000 or less and is often more competitive than other lenders on larger amounts
• Good returns on savings. Despite the current economic climate, many successful credit unions pay an annual dividend on savings
• Secure savings facility
  Like banks and building societies credit unions are regulated by the Financial Services Authority so you can feel confident that your money is safe.
• Other benefits include built in life assurance

There are currently 29 credit unions in Wales. Internationally credit unions operate in 92 countries and serve over 150 million members.

The Centre also works closely with credit unions in Wales through a Department of Work and Pensions contract designed to tackle the issue of financial exclusion. For more details on the work of the Financial Inclusion Champions contact Katija.dew@walescoop.com

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