If you want a great value Credit Union Loan, we can help you find it here at Personal Loans Now. Using our credit on demand system, we search the entire loans market, so you don’t have to. We can show you the Credit Union loans in the UK that match your requirements. An alternative to other types of borrowing, a Credit Union loan is a great option for loans from £1,000 up to £20,000. Click apply now, and we’ll help you find Credit Union loans that work for you.
What are Credit Union Loans?
Credit Union loans are an alternative to applying through traditional banks and building societies. You’ll need to become a member of a credit union to apply for a loan through them. You’ll be part of a community of members who combine their savings to help lend to each other. As a community organisation, credit unions are owned and run by its members. They utilise their services with a ‘common bond’. This means all members must live in the same area, work for the same employer or work within the same industry. They are non-for-profit organisations that put any profits received back into the community. This is to improve services as they do not have any shareholders, meaning many benefits for its members.
You’ll be limited to what you can borrow with a Credit Union loan, usually a maximum of £20,000. But this will depend on your current credit rating and affordability. They generally cannot offer more than this due to being not-for-profit organisations. This means their resources are much less than those of high-street banks. If you’re looking for amounts higher than £20,000, a personal loan may be a better option. Credit Unions are regulated and protected by the Financial Conduct Authority. Anyone that uses them is therefore protected as well.
Credit Union Loans in the UK for Bad Credit
If you have bad credit, you may still be able to apply for Credit Union loans and get approval. At Personal Loans Now, we consider your whole financial situation and not just your credit rating. You may have found it difficult to be approved for loans through traditional means due to a poor credit rating. That’s where we can work differently by taking into account what your current financial situation is. We assess what you can afford to pay each month against the loan amount you’re requesting. We can then connect you with 40+ direct lenders who are best placed to help you. Of course, this doesn’t guarantee you’ll be approved if you have bad credit. This could mean that the amount you can borrow will be limited or the interest charge may be much higher. You may only be able to borrow up to £7,500 with bad credit. You may find that although we’ll always find you the lowest rates possible, the interest may be higher. This will vary depending on the lender, but we can show you offers available, so you make an informed decision.
How Can I Be Eligible for Credit Union Loans Online?
To be eligible to apply for Credit Union loans, you’ll need to meet the following minimum requirements:
- You are 18 years of age or older
- You have a UK bank account
- You are a current UK resident
- You have a regular source of income
The above are a minimum requirement to be able to use Personal Loans Now. This will not guarantee you’ll be approved for Credit Union loans online. You’ll need to pass credit and affordability checks and become a member of a credit union. To get approved for Credit Union loans online, you’ll need to make improvements to your credit file where necessary. You should assess your current income and expenditure as well. This is so you can see what your disposable income is after all of your main bills are paid each month.
Why Choose Personal Loans Now For Credit Union Loans?
There are many great reasons to choose us to compare Credit Union loans online. Using our credit on demand system will help you find the best deals available:
- Fully Online Application – you can apply for Credit Union loans completely online. From start to finish, with no waiting for paperwork to be signed.
- High Acceptance Rates – we are proud to offer high approval rates, having helped 50,000 people get the loan they want.
- Low APR Rates – we search the market to find the lowest available rates on Credit Union loans for you.
- Instant Approval – we can provide you with an instant decision in just 90 seconds.
- Same Day Funding – if you’re approved, you will get same day funding into your bank account.
- Fully Authorised Lenders – All our lenders are fully authorised, and commit to lending responsibly.
So, if you want an easy way to compare loans online, click apply now, and we can help you find the borrowing you need. Remember, to receive your own personalised table of offers, no credit check is needed first. This will give you time to review available loan offers without having a negative impact on your credit score.
Credit Union Loans FAQs
How Quickly Can I Receive the Funds for Credit Union Loans?
You’ll be able to receive funds on the same day once approved if you have applied during regular working hours (9-5 PM). Some lenders may take longer than others to approve your application. Credit Union loans may take longer due to their resources being smaller compared to a larger lender. If you need funds quickly, we can show you direct lenders who can offer quick loans if you need them the same day.
What Happens if I Miss Repayments on Credit Union Loans?
If you miss repayments, you’ll need to inform the lender at the earliest opportunity. This is to avoid any penalty charges or the lender taking legal action to recover the arrears. You’ll need to check your credit agreement ensuring your fully aware of potential issues with missing repayments. If you speak to the lender in the first instance, most will be able to come to a solution with repayment. If repayments are continued to be missed, the risk would be the lender taking legal action. They will be able to recover the arrears or even request the full loan amount to be repaid.
Can I Borrow More than £20,000 with Credit Union Loans Online?
Due to the smaller resources available, Credit Unions won’t be able to offer higher loans than £20,000. As they are members-only organisations built on the sharing of savings, the funds available are limited. Some Credit Unions may be able to offer more than others. With our secured loans, you can borrow up to £250,000. This will need to have collateral added to the loan, normally a vehicle or property to secure the loan.
Do I Need a Guarantor to Apply for Credit Union Loans?
No, you don’t need to have a guarantor to apply for borrowing. However, depending on your situation, a guarantor may give you a better chance of being accepted. Guarantor loans allow you to have someone co-sign the loan agreement, for example if you’re on income support. This is usually someone who has a good credit rating. This will reduce the risk to the lender and increase the chances of you being accepted. If you have a good credit rating and affordability, then in most cases you shouldn’t need a guarantor.
Can I Get Credit Union Loans if I’m in Financial Difficulty?
If you’re in financial difficulty, we recommend contacting the Money Advice Service. They will be able to offer you free, impartial financial advice to help. We cannot lend to someone in financial difficulties. You will need to fully assess your current finances before clicking apply now. This way, you can see exactly what you can afford to pay and ensure when you apply you are in the best position. We do not want to cause you to be overextended. This is why as a fully authorised credit broker, we are committed to ensuring you are responsibly lent to.