Credit Unions and Affordable Credit

Northern Money is a directory of 22 North East credit unions, offering a free, confidential service to help people manage their money issues.

It is designed to make it easy for people to find information about savings and loans in their local area.

Type your home or work postcode into the search box to get a list of all the credit unions available and the relevant links.

Visit www.northernmoney.org.uk Opens in a new windowor telephone 0191 279 4881 for more information.

The Co-operative Electrical

The Co-operative Electrical has set up a partnership with credit unions to offer finance for a range of electrical goods.

If you live or work in Newcastle please click this link to find out more Moneywise Coop Electric Loans Opens in a new window

If you live or work in North Tyneside please click this link to find out more Northern Oak Credit Union Opens in a new window

What are credit unions?

These are financial co-operatives, owned and run by their members. They offer more affordable loans than doorstep lenders. Most still have rules restricting the areas members can come from, called a "common bond", although this is changing.

Credit unions are regulated by the Financial Services Authority (FSA).

How do I save with a credit union?

You can save as much or as little as you wish. Payments can be made at paying-in points, by payment card or directly from bank accounts. Ways of paying vary from one credit union to the next.

Can I apply for a loan?

Loans are available to members, but some credit unions like you to save for a few weeks before you can apply for their cheapest loans at an interest rate of about 1% a month. Some credit unions can offer you a loan without saving first but the interest rate is likely to be about 2% a month. Each credit union has different rules about the account and the loans it offers.

You might qualify for a Social Fund if you receive Income Support, Income Based Jobseeker's Allowance or Guarantee Pension Credit: Social Funds are interest free. Call 0800 055 6688 for more information (0800 023 4888 if you have a speech- or hearing-impediment phone) or click here to visit the Directgov site Opens in a new window and read the sections on budgeting loans, crisis loans and community care grants.

How do I join a credit union?

You will need to complete a form and pay a joining fee. The fee might be as little as £1.

For more information and to find out which is your local credit union you can contact the Association of British Credit Unions Limited at:

ABCUL
Holyoake House
Hanover Street
Manchester
M60 0AS

Tel: 0161 832 3694

Website: www.abcul.org Opens in a new window