Can anyone explain to me how a credit union works?
A friend has been asking me about it today- I said I'd have a look oniline, but can't find much.
I understood that it was a way to save money up, but have now been told that you can take loans out from them.
I need to know, are they available only to people working, people on beneifts or both?
Do you need to live in the town/ city where the credit union is based to use it?

Any info greatly appreciated.

Thanks

Well they're more like a cash co-operative than a bank.

http://www.abcul.org/page/about/intro.cfm

Good idea for people who want to save and borrow small amounts over short periods.

There are a number of them in most towns which will probably all have different eligibility rules around where you need to live etc. so you'd need to find specific ones.

You should find everything you need to know at:

http://www.abcul.org/page/about/intro.cfm

There are a number of them in most towns which will probably all have different eligibility rules around where you need to live etc. so you'd need to find specific ones.

You should find everything you need to know at:

http://www.abcul.org/page/about/intro.cfm

Thanks guys for that link, but it doesn't seem to include all unions. I know for a fact there is one in Sheffield, but it's not showing up, and several in Rotherham but neither are those.

I was involved in setting up a credit union in Rotherham, and I'm now a member of one in Sheffield. Lots of info here about Sheffield CUs http://www.fisy1.co.uk/Credit%20union%20pages/Credit%20Union.htm

And here's a link showing some in Rotherham. http://www.rcuda.org.uk/index.htm

Thanks Ms Macbeth!

I was involved in setting up a credit union in Rotherham, and I'm now a member of one in Sheffield. Lots of info here about Sheffield CUs http://www.fisy1.co.uk/Credit%20union%20pages/Credit%20Union.htm

And here's a link showing some in Rotherham. http://www.rcuda.org.uk/index.htm

Nice work! :thumbsup:

If credit unions had adequate capital to expand and become more competitive with commercial banks, then people would soon see that such a banking model keeps borrowing sustainable and allows the interest to be funnelled back into communities rather than lining a few shareholders' pockets. The argument that credit unions are only good for small transactions is short sighted, since it's the co-operative model that is key here, and such a model does not have to operate within such a limited capacity.

What the government failed to advise prior to this economic crisis (during the "boom" times) was to move our money out of private banks and into co-ops and credit unions. Of course, they didn't advise this because they have private bankers jingling about in their back pockets, and private banks HATE credit unions/co-ops, for obvious reasons.

Thankfully, due to the co-operative/Labour alliance, there are still a few principled MPs who have successfully pushed through legislation helping to expand the role of mutual organisations, but until there is more education on how our monetary system works, currently in favour of private banking cartels, then people will continue to entrust the wrong institutions with their money.