04 May 2022
Why joining a Credit Union makes sense
Dawn Cowderoy, Business Development and Marketing Manager at Manchester Credit Union explains why joining a Credit Union makes sense.
Part of my job at Manchester Credit Union involves me speaking regularly to lots of people to encourage them to join us and become a member. I speak to all types of people in our local community; individuals, charities, single parent families, those who are unemployed and those who are in work. I also speak to lots of employers in the Greater Manchester region who are interested in our payroll deduction service for their employees.
The one question I am always asked is ‘Why is a Credit Union a better option than more traditional providers like banks and building societies?’ Here’s some of the responses I provide to explain why:
- They aim to help their members be in better control of their finances, encouraging them to save regularly to become more financially resilient and only borrow what they can repay
- They help their local community as they use members’ savings to provide the funds for loan applications, therefore keeping the money within the region they operate
- They can provide much smaller loans for their members, from as low as £150. Most other financial providers like Banks would not be interested in providing small loans and may suggest overdrafts which are hard to get out of
- They will work hard to provide solutions and options to members who have money concerns including payment holidays
- Unlike other providers, they don’t have any hidden costs. There are no set up or charges for paying your loan off early
- They provide peace of mind with free life savings insurance so should one of their members die, their savings are paid to a nominated beneficiary (terms apply)
- Credit Unions don’t use computer algorithms to process loan applications – each application is assessed by a member of staff and approved on the basis of affordability in addition to credit checks
- They are owned and controlled by its members meaning members can have a say in their operations
- Any surplus made is returned to members, instead of external shareholders, in the form of an annual dividend. It is usually higher than interest rates you would get from a Bank or Building Society account
- They work closely with other partners and stakeholders to signpost where to find resources and impartial advice on any financial concerns that members might have
So you can see for all these reasons, it makes sense to consider using a Credit Union for saving and borrowing requirements. All Credit Unions are very community focused and will genuinely try their hardest to help all of their members.
But don’t take my word for it! Please visit the websites of the consumer group Which and the Martin Lewis site for further information on why you should talk to a Credit Union before other financial providers.
Please contact us if we can help.