What you need to know when applying for a loan with MCU

Most people need credit at some stage of their lives, and applying for a loan can be stressful if you have a poor credit history, or even no credit history. If this is the case, it doesn’t mean that Manchester Credit Union can’t help you.

We are different to banks and other lenders in how we assess loans. Each application is reviewed by a member of staff, not a computer, and decisions are made based on your recent credit history and your ability to repay the amount you want to borrow, alongside your other financial commitments.

We will ask you to provide evidence of your financial situation which lets us to do a detailed analysis of your income and expenditure to help us make a decision. The quickest and easiest way to do this is to submit your bank statements to us using Open Banking API’s. Only partners who are licenced and authorised by the Financial Conduct Authority are permitted to access these API’s so it is a very safe and secure way of sharing your financial data with us.

If you provide us with all the relevant and correct information, we can make a quicker decision regarding your loan application. We will have concerns if you have had unpaid items or missed repayments in the past, so it is important to make every effort to make the minimum repayment on all of your debts as this shows us that you are committed to keeping on top of your financial circumstances.

However, there will be some cases where we are unable to lend to you. Please consider the following before you apply:

• We will not lend if you are currently subject to an Individual Voluntary Arrangement, Debt Relief Order, Bankruptcy Order, Debt Management Plan or similar scheme
• We will not lend for business purposes
• We will not lend for a mortgage application
• In most circumstances we cannot lend if you have applied for a loan with us in the last 6 months and been declined

If you want to apply for a loan with Manchester Credit Union, please have a look at the loan calculator on our website. This will show you the repayment amount for the loan you want to apply for and the interest you will pay. Unlike other lenders, Manchester Credit Union does not offer representative or headline rates – what you see on our calculator is what you will be charged.

As a responsible lender we will never knowingly put you in a worse financial position by offering you a loan that would cause you financial hardship. We genuinely want to be in a position to give you a loan but you must consider your circumstances and do as much as you can to put yourself in a situation where we can approve your application.