Skip to main content

Credit Unions

Local, not-for-profit lenders owned by the people who use them.

A credit union is a financial co-operative. Its members save and borrow with each other, and any profit goes back to them rather than to shareholders. If you can join one, it is well worth checking before you borrow anywhere else.

Quick Loans mascot holding a life ring

Why People Choose Them

Capped rates

By law, a credit union can charge no more than 3% a month on a loan, around 42.6% APR, with any fees included in that limit. Many charge far less.

A local decision

Credit unions know their area and often look at your situation as a whole, so some will lend to people that high street banks turn away.

A savings habit

Many encourage you to save a little alongside your loan repayments, so you have something to fall back on next time.

The Things To Know

  • You have to join first. Each credit union has a "common bond" – usually where you live or work – and you must fit it to become a member.
  • Some want you to save first. A few ask you to save regularly for a few weeks or months before they will lend.
  • Decisions can take longer. Applications are often checked by people rather than computers, so the money may not arrive the same day.
  • Your savings are protected. Like bank savings, money held with a UK credit union is covered by the Financial Services Compensation Scheme.

Credit Unions In Some Of The UK's Biggest Cities

A few examples to get you started. Each sets its own membership rules, so check you are eligible on its website.

Not in one of these cities? Search by postcode with Find Your Credit Union to see which ones you can join.

Credit Union Questions

Can I join a credit union with bad credit?

Usually, yes – joining and saving doesn't depend on your credit history. Borrowing is a separate decision, but credit unions tend to look beyond your credit file at whether you can afford the repayments.

Does Quick Loans work with credit unions?

No. We arrange loans from our own panel of lenders. We include credit unions here because they can be a good option, and we want you to know every choice you have.

Are credit unions regulated?

Yes. UK credit unions are authorised by the Prudential Regulation Authority and regulated by both the FCA and the PRA, the same as banks and building societies.