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Credit Unions
What is a Credit Union?
A Credit Union is a not for profit democratically-run financial co-operative. The members actually own and run their Credit Union themselves, offering a convenient way to save, and low interest loans.
The main aims of a Credit Union are:
- To encourage members to save on a regular basis
- To provide loans to members at affordable rates of interest
- To provide members with help and support in managing their own financial affairs if needed
What are the benefits of a Credit Union?
- It is an easy and convenient way to save and borrow
- It offers very low cost loans
- Free life insurance
- It's a new way to learn skills
- Brings people in the community together
People within the community can be brought together to work together for their own benefit and also benefit the community by organising local events, family fun days etc.
Who supports Credit Unions?
Local Authorities, European Union, Housing Associations, Tenants/Residents Associations, Churches, Community groups, National Consumer Councils, Citizen Advice Bureaux, Trading Standards, Police, Fire, Taxi drivers, etc.
How does a Credit Union work?
- Members can make regular savings - saving as little or as much as they wish
- These savings then form a common pool of money from which loans are made to members
- When members have been saving for at least 12weeks, they can apply for a loan from the pool
- Interest on the loan is charged at only 1% per month on the monthly reducing balance. Equal to an annual percentage rate (APR) of 12.68%
- There are no fees involved for loan arrangement, set up, or early repayment
What about security of my savings, safety of my personal information, and insurance?
Credit Unions....
- Must be registered with the Financial Services Authority
- Are covered by the Credit Union Act 1979
- Are regularly monitored by The Financial Services Authority
- Are registered under the Data Protection Act and all Credit Union staff must act in a confidential manner at all times
- Are insured against fraud and theft
- Provide life and loan protection insurance at no direct cost to members - payable to a nominated beneficiary
- The life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares
- The loan protection insurance covers the amount of your outstanding loan
Trafford United Credit Union
Our Common Bond area now extends to the whole of the Borough so any one who lives or works in Trafford can now join us.
Anyone can join, regardless of their income, employment status or age, although it is not possible to take out a loan under the age of 18. For further information contact:
Shrewsbury Street Centre
Shrewsbury Street
Old Trafford
M16 9AX
Email: traffordunited@yahoo.co.uk
Telephone: 0161 912 1536
This page was last reviewed on 28 October 2009
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