Credit union directory

A credit union is a financial co-operative owned by its members. Members save together, and those savings are used to fund loans to other members. Because it is run for its members rather than shareholders, each member has one vote and volunteer directors are elected from the membership. Services vary by branch, but can include savings accounts, loans, foreign exchange and prepaid debit cards, and some offer current accounts.

You need to share a common bond with other members. That might mean living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union. If one person in a household meets the common bond and joins, other family members at the same address can usually join too.

The Association of British Credit Unions runs a search tool at findyourcreditunion.co.uk, and you can also call 0800 015 3060. Credit unions are listed by the common bond they serve, so the search matches you to the ones you are eligible for rather than to the nearest branch.

Yes. Credit unions are regulated financial firms, and they are exempt from certain rules and regulations that apply to other financial services providers. That exemption reflects their co-operative structure and the limits on who they can accept as members, not a lighter approach to looking after customers' money.

Savings held with a credit union are covered by the Financial Services Compensation Scheme in the same way as savings with a bank or building society, up to the scheme's limit. You can check whether a particular credit union is covered using the FSCS protection checker before you open an account.

Credit unions allow you to borrow at least twice more than you have saved once you have been a member for a certain length of time. The exact multiple and the qualifying period are set by each credit union, so the terms differ between providers. A loan from a credit union is more affordable than some alternatives.

Some do. A credit union current account is usually offered with no credit check or overdraft. Because services vary by branch, it is worth checking what the credit unions you are eligible for actually provide before assuming a current account is available.

They suit people who find it difficult to borrow from banks because of a poor credit history, and anyone who wants a savings or loan provider they have a say in running. Fair and affordable lenders such as credit unions and CDFIs provide a vital service to people in vulnerable circumstances who are excluded from mainstream credit.