1st Class Credit Union

Good:
Members area on their website allows you to manage your savings and loan online

Bad:
It can take a bit longer to get your loan as it has to go before a Credit Committee for a decision

Verdict:
No fees and a chance to rebuild your credit - must be an employee of The Royal mail, Post Office Counters, Cashco, Romec or Quadrant and you must be working in the UK (not N.I.)

You must be an employee of The Royal mail, Post Office Counters, Cashco, Romec or Quadrant and you must be working in the UK (not N.I.) to become a member.

Credit Unions offer a few different unsecured loans for any purpose. Their loans are not the cheapest compared to other credit unions. They lend based on your proven ability to repay, this is why they do a thorough check of your income and expenditures. You need to be a member and you can apply for a loan up to four times your savings (max. £1,000) after 12 weeks of being a member and saving regularly with them. Your second and subsequent loans can be up to four times your savings also (max. £15,000). You must pay your first loan back within 1 year but your other loans must be repaid in 3 years.

First you will need to become a member of the union. To apply for a loan, you need to complete an application form, in writing. You can then hand this into one of their offices or collection points - must submit the application at least 21 days before you need the loan. Your application will be assessed and reviewed by the Credit Committee for approval to ensure you can afford the loan. If the loan is granted, you may need to attend an interview.

The process may in some cases take up to a few days so this is not a good option for you if you need your money quickly. You can manage your loan online so if you need to make changes, you are able to manage your savings and loan online. With credit unions, the money you are borrowing is the money of other members, so if you fail to make payments, they take this very seriously. They want to help you rebuild your finances if you haven't got a good history. Their interest rate is quite high compared to other credit unions and their repayments can be really small each month, depending on how your loan is tailored.