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.

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
  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 including built in life assurance

There are currently 32 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 contact Katija.dew@walescoop.com The “Now let’s talk Money” campaign is a key element of the contract. The campaign signposts financially excluded people to organisations which can provide assistance through free face-to-face money and debt advice, affordable credit and loans, and credit union or basic bank accounts. To find out more contact rhian.hughes@walescoop.com