The Advice & Representation Centre’s Guide to Credit Unions
What is a Credit Union?
Credit unions are usually small, non-profit financial organisations set up by members with something in common to benefit their community.
That common factor may be living in the same town, working in the same industry (eg, the Police Credit Union) or belonging to a particular trade union.
Where can I find my local Credit Union?
Have a look online and visit Find your Credit Union:
http://www.findyourcreditunion.co.uk/home
Can I apply for a loan or save through Hillingdon Credit Union?
Yes you can, even if your permanent address is not within Hillingdon. Brunel University has an agreement with Hillingdon Credit Union; more details can be found below:
http://www.hillingdoncu.co.uk/content.asp?section=20
What are the benefits of a Credit Union?
Credit Unions are like a financial community. The idea is that members mutually benefit as there’s no profit for third-party shareholders.
You can save as well as lend money. Credit Unions are nonprofit organisations so the cash is only used to run the services and reward the members, and NOT to pay outside shareholders, like most other financial institutions.
Does becoming a member of Hillingdon Credit Union have benefits?
Yes.
· Flexible & Convenient Loans: Members can take out flexible loans and repay at tailor-made schedules.
· Attractive Dividend on Savings: Every year Hillingdon Credit Union pays an attractive dividend on members’ savings- often much higher than available with most Banks and Building Societies for an instant access account.
· No Fees
· Any member of the Credit Union can have our prepaid Visa card - this does NOT have any credit checks, you cannot go overdrawn- so is very useful if someone is having difficulty opening a bank account because of credit history issues or because of their country of origin.
· The Hillingdon Credit Union offers FREE Life Insurance.
· If you can’t get access to ordinary bank products such as overdrafts or loans then a Credit Union can often be a lifeline; they can be a welcome alternative to payday loans or doorstep lending.
Particular benefits for students
Where a student has spent all their grant and in effect has expenditure greater than their income, Hillingdon Credit Union has the ability to do the following with the parents support:
1] They are able to lend direct to the parents against their income - the parents then give the funds to their child. This works where the parents can afford the loan payments but do not have the free cash to support their child.
2] An alternative, where the parent does have the funds but is trying to instil some financial discipline, HCU are able to open a deposit account in the name of the parent and for these funds to support a loan in their child's name. The funds would only be used in the event the child defaults on their loan.
International Students
International students are more than welcome to become members of Hillingdon Credit Union. They will need to provide certain financial information to protect themselves and the Credit Union from risks of money laundering, but providing that they are not from few countries which are banned from using UK banking facilities, international students can access HCU services.
Is my money safe in the Credit Union?
Yes. Credit union savings have exactly the same protection as normal savings accounts; in other words, the Financial Services Compensation Scheme will pay back £85,000 per person, per institution.
How do I apply to Hillingdon Credit Union?
· Complete the Loan and Member application form. This can be found by searching for Hillingdon Credit Union need a loan
· Submit together with photocopies of supporting documents
Can I have a card and account similar to a standard bank account?
Yes, Hillingdon Credit Union can offer you this facility; you can have a bank account number and a sort code, and a Visa debit card. The debit card is a pre-paid card- you need to pay in money first. This way you can never go overdrawn and pay expensive overdraft fees.
Please visit the website for more detailed information and find out how to apply.
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