Penny Post 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 so if you are in a hurry, look around elsewhere

Verdict:
Low interest rate, no fees and a chance to rebuild your credit - must be a Royal Mail employee living in England or Wales

You must be a Royal Mail employee living in England or Wales 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 up to £2,000 after 6 weeks of being a member and saving regularly with them. The maximum amount a new member (min. 12 months membership) can borrow is £2,000.

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, and you can hand it into their office or one of their collection points. 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 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. 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.