Crownsavers Credit Union

Good:
Members area on their website so you can manage your finances online

Bad:
Can take up to two weeks to get your loan so don't apply if you need quick cash

Verdict:
They can help you rebuild your finances if you had bad credit in the past - must be an employee of Lewisham Council, Lewisham University Hospital or Lewisham College

You must be an employee of Lewisham Council, Lewisham University Hospital or Lewisham College to become a member.

Credit Unions offer a few different unsecured loans for any purpose. Their loans are considerably cheap and are 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 at any point after becoming a member.

First you will need to become a member of the union. To apply for a loan, you need to complete an application form, which you can get from their office or a collection point. Once you have completed it, take this to their office along with proof of ID, proof of address and proof of income (wage slips, benefit letters, etc.). The Credit Committee or a Loan Officer will review your application and inform you of their decision within 5 working days. Once the loan is granted, you need to sign the loan agreement form and you will get your money.

The process may in some cases take up to two weeks 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 don't need to visit an office. 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. Their opening hours are very limited, which makes it difficult for you to go in to organise all your documents and sign your agreement. On the other hand, they want to help you rebuild your finances if you haven't got a good history. Their rates are extremely low and their repayments are really small each month.