What is the difference between this borrowing and just getting a credit card or bank loan?
• Credit Cards are designed for short term borrowing, and unless you pay off the full balance every month, become a very expensive way to borrow. • Banks charge set up costs for loans and have penalty clauses for early repayment or changes to monthly payments – Credit Unions do not charge for either of these. • Credit Union loans are often cheaper than bank or building society loans up to about £2,500 • Credit Union loans allow greater flexibility in both the initial repayments and in the case of any arrears. • Credit Unions will not try to sell you other related products such as payment protection insurance because we are run by our members, for our members, Taken from Money Made Clear from the UK’s financial watchdog (FSA) For further information see www.moneymadeclear.fsa.gov.uk Why do people become members of credit unions? People join for many reasons – among the members of Norwich Community Co-operative Credit Union some reasons are as follows; • I am a student planning a gap yea
