What is a Credit Union?

What does a Credit Union do?

A credit union is a bit like a bank. You can use it to manage your money and savings and you can also take out a loan. However, a credit union is different from a bank because it is a not-for-profit financial institution. Credit unions are set up, owned and managed cooperatively by their members. 

Members of credit unions have a common bond. This is something that all the members have in common with each other, like living in the same city, working for the same employer or belonging to the same church or trade union. To join a credit union, you will need to meet their common bond.

What is a Credit Unions purpose?

A credit union offers a way to manage of managing money, in ways which benefit the credit union members. Since credit unions are not-for-profit, any money made is invested back into the credit union to benefit the members.

Credit unions aim to help you take control of your money by encouraging you to save what you can. Once you have a reliable record as a saver and you are 18 or over, you can apply to borrow money from them. They will let you borrow what you can afford to repay. 

A credit union may suit you if you don't want a bank account or you want the flexibility to save what you can, when you can. Or if you prefer a local, ethical co-operative. Credit unions promote saving and also provide credit at reasonable rates. 

How old do I need to be to get an account?

Some credit unions allow you to save with them at any age, but you need to be 18 before you can borrow money.