Dragon Savers Credit Union

Good:
They have numerous collection points that are open at different times throughout the week for you to access

Bad:
It can take anything up to a couple of weeks to get your loan paid out

Verdict:
Offer low interest rates and small repayments per month - must be living or working within the Borough of Rhondda Cynon Taff

You must be living or working within the Borough of Rhondda Cynon Taff to become a member.

Credit Unions offer a few different unsecured loans for any purpose. Their loans are fairly 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 saving with them for a minimum of 8 weeks.

For all first loans the APR is 26.8%, providing the loan is paid off as per the terms of the agreement, further loans may be offered at a reduced rate of 19.6%.

They offer 2 different types of loans: Standard loan over £1,000 and Value loan under £1,000.

First you will need to become a member of the union. To apply for a loan, you need to complete an application, which you can download from their website (see example below), pop into their office or one of their collection points. Be sure to include your documents. If you are applying for £1,000+ you will need to send last month's bank statements. If you are applying for £3,000+ you will need to send last 3 month's bank statements. Loan officers will review your application and if granted, you will need to attend an interview.

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 cannot manage your loan online so if you need to make changes, you will need to contact them in writing or pop into a branch. 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.

Monday-Friday: 9:45am – 1:00pm

To see a list of all of their collection points and opening times, visit the following link: http://www.dragonsavers.org/index.php?cid=cad29ae9e39722d0b55549f21ba4a767