Southeast Financial Credit Union is suing The College Network, an Indianapolis-based college test preparation company. You can also usually stay in the union if you’re not in the bond anymore, for example if you move house or job, although smaller unions may not have the resources to be able to deal with this. There are a number ways to find a credit union near you and check out precisely what your local credit union offers: Use ABCUL’s Find Your Credit Union website, which does exactly what it says on the tin.
As an alternative to a credit union, you may find a Community Development Finance Institution is able to help you with a small loan. If you feel like dedicating time and effort, then you can always set up your own credit union. Credit unions aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to repay.
In essence, they’re savings and loan co-operatives, where the members pool their savings to lend to one another and help to run the credit union. Throughout the year, those running credit unions must put aside enough money to ensure they don’t go bust. A key appeal of credit unions is a willingness to make small loans of £50 to £3,000, which most high-street banks won’t do. They’re a much cheaper alternative to payday loans , and some credit unions can even get cash to you the same day.
In the old days, a credit union kept a strict rule that it would only lend to those who already had savings but this is changing; some will now lend to those who are new to the organisation. These rates are higher than the cheapest credit cards or loans But they’re MASSIVELY cheaper than the products offered to those who are usually turned down for loans from high street banks, when rates can run into the hundreds or even thousands of percent.
But the big difference is that while the payday lender has a representative APR of 1,000%+, the credit union’s maximum APR is 42.6%. You could find that some credit unions will insist you regularly save for several months first, to ensure you remain committed, or make checks to be sure you have enough to be able to pay all your other bills as well repay a credit union loan. So if you die before paying off the loan, the credit union’s insurer would repay the loan for you.