If you’re wanting a great value Credit Union Loan, we can help you find it here at Personal Loans Now. Using our credit on demand system to 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. Offering an alternative to other types of borrowing, a Credit Union loan can be a great option when looking for loans between £1,000 up to £15,000. 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 way to apply for borrowing than through traditional banks and building societies. You will need to become a member of a credit union to be able to take advantage of applying for a loan through them, becoming 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 who utilise their services and must have a ‘common bond’. This means that all members must either 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 to improve services as they do not have any shareholders, meaning many benefits for its members.
You will be limited to what you can borrow with a Credit Union loan, usually a maximum of £15,000, 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, meaning their resources are much less than those of high-street banks. If you’re looking for borrowing amounts higher than £15,000, a personal loan may be a better option for you. Credit Unions are FCA regulated and protected by the Financial Conduct Authority so that anyone who uses them is protected.
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 take into consideration your whole financial situation and not just your credit rating. You may have found it difficult to get approval 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. By assessing what you can afford to pay each month against the loan amount you’re requesting, we can make an informed decision and look to help you as direct lenders. If we cannot approve your loan application, we can connect you with 40+ direct lenders who are best placed to help you. Of course, this doesn’t guarantee you will be approved if you have bad credit and 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 and find that although we will always find you the lowest rates possible, the interest may be higher than if you had good credit. This will vary depending on the lender, but we can show you the 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 will need to meet the following minimum eligibility 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
These are a minimum requirement to be able to use Personal Loans Now, but will not guarantee you will be approved for Credit Union loans online. You will need to pass a credit check as well as affordability checks and become a member of the credit union as part of the application process. To have the best chance of getting approval for Credit Union loans online, you will need to check your credit score and make improvements where necessary to help improve it. You should also assess your current income and expenditure so that you can see what your disposable income is after all of your main bills have been 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 to 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 already 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 are approved, you will get same day funding into your bank account.
- FCA Authorised Lenders – we are an FCA authorised lender and so are the lenders we can connect you with.
So, if you want an easy way to compare loans online, click apply now and we help you find the borrowing you need. Remember, to receive your own personalised table of offers, you don’t need a credit check first, giving you the time to review the 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?
In most cases, you will 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, with Credit Union loans sometimes taking longer due to their resources being smaller compared to applying through a larger lender or high-street bank. 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 will need to inform the lender at the earliest opportunity to avoid any penalty charges or the lender taking legal action to recover the arrears. You will need to check the credit agreement to ensure you are fully aware of the 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 of arrears. If repayments are continued to be missed, the risk would be the lender taking legal action to recover the arrears or even request the full loan amount to be repaid.
Can I Borrow More than £15,000 with Credit Union Loans Online?
Due to the smaller resources available, Credit Unions won’t be able to offer higher loans than £15,000. Because they are members-only organisations built on the sharing of savings, the funds available are limited with some Credit Unions able to offer more than others. If you are looking for higher borrowing, with our personal loans you can borrow up to £25,000 unsecured. With our secured loans, you can borrow up to £250,000, but 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 what your credit rating is, having a guarantor may give you a better chance of being accepted. Guarantor loans allow you to have someone co-sign the loan agreement, 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 should not need a guarantor.
Can I Get Credit Union Loans if I’m in Financial Difficulty?
If you are currently experiencing financial difficulty, we recommend that you contact one of the free organisations, such as the Money Advice Service, who will be able to offer you impartial financial advice to help. We cannot lend to someone in financial difficulties, so 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, which as an FCA authorised lender, we are committed to ensuring you are responsibly lent to.