Frequently Asked Questions

 

 

 

1.       What is a Credit Union?

 

  

Credit Unions are savings and loan co-operatives.  They are established to provide a savings scheme and loans at a fair interest rate for their members.  All members of the Credit Union either work or live in the Bath and North East Somerset Area, this is our “Common Bond”.  A Credit Union is a friendly, fair and ethical way to save and borrow.

 

2.       Can anyone join the Credit Union?

 

 

 

 

Yes, if you live or work in the Bath and North East Somerset local authority area.  The Credit Union welcomes everyone, whether you are in work, out of work, retired, a student, self employed or at home with children.  To join, you simply fill in the application form, supply proof of identity and pay a membership fee of £1.

 

 

3.       Can Children Join?

 

 

Yes, joining the Credit Union is a good way to save for children, and for young people to learn to manage their money.  Depending on the age of the child, a parent may need to sign for withdrawals.

 

 

 4.       What interest rate does the Credit Union charge on loans?

  

Interest is charged at a flat rate of 1% per month on the reducing loan balance, with no hidden charges.  This is cheaper than most storecards, catalogue credit, credit cards and bank overdrafts, not to mention doorstep lenders.

 

5.       Can anyone apply for a loan?

  

 

 

 

We ask members to pay regularly into their savings for at least 8 weeks before they are eligible to apply for a loan.  We can then offer them up to 3 times the share balance as a loan at the time of application.

 

6.       Do I have to save alongside paying off a loan?

  

 

Yes, we like our members to save at least a few pounds each week/month alongside paying their loan repayments.  Then, when the loan has been repaid, the member has built up a reserve which can be used against another loan if required.

 

 

 

7.       I can get credit elsewhere, why should I join the Credit Union?

  

 

Firstly, the Credit Union could probably offer you a better deal.  Secondly, you will be helping keep the community money within the community, and offering a fair deal to other people.

  

 

8.       How can I pay into the Credit Union?

  

There are various ways to pay.  Either at one of our local Service Points, through a standing order mandate or payroll deduction (subject to availability)

 

 

 

 9.       Is my money safe?

  

 

 

Absolutely, the Bath and North East Somerset Credit Union is regulated by the Financial Services Authority, which also regulates High Street banks and building societies.  This means that your money is as safe as it would be with a bank.  The Bath and North East Somerset Credit Union is also a member of the Association of British Credit Unions Ltd (ABCUL), the largest governing body for Credit Unions in the UK .