East Kilbride Credit Union

East Kilbride Credit Union is a member-owned credit union serving people who live or work in South Lanarkshire, North Lanarkshire, Renfrewshire or East Renfrewshire. It offers savings accounts and a range of loans, from a credit builder loan to a home improvement loan, and it is covered by the Financial Services Compensation Scheme (FSCS)¹.

Credit unions are financial co-operatives: members pool their savings and lend to each other. All credit unions offer savings accounts and loans, and services vary by branch³. East Kilbride Credit Union describes itself as offering "safe and affordable financial services" including savings and loans⁵.

You need to be a member to save or borrow. Joining online requires an initial deposit of £10.00, or £5.00 if you open your account in the office¹. The credit union is authorised by the FCA and appears on the Bank of England's list of UK credit unions⁶.

Savings and loans at East Kilbride Credit Union

Savings and loans are the core of what a credit union does. All credit unions offer savings accounts and loans, and the Association of British Credit Unions describes credit unions as offering a range of savings accounts³. East Kilbride Credit Union offers savings accounts and loans to its members, alongside a Christmas savings account¹⁰.

Members can save at whatever level suits them. One credit union describes members saving "at an affordable level, be it £1 or £100", and the principle across the movement is that small regular saving is the starting point¹¹. Savings with a credit union are protected by the FSCS, and East Kilbride Credit Union states that it is covered by the scheme².

On the lending side, credit unions offer loan products suited to individual needs and at rates members can afford⁹. East Kilbride Credit Union's loan range includes home improvement, school support, credit builder, unsecured, secure savings, payroll and surgery and cosmetic loans, plus a product called EKCU+⁸. Each is described on the credit union's own site, where current rates and terms are set out.

For a wider look at how these products compare across providers, see credit unions: a complete guide, savings accounts: a complete guide and loans: a complete guide.

Loan types: from home improvement to credit builder

East Kilbride Credit Union's loan range covers several purposes, and the type you choose affects how the loan is secured and repaid⁸.

• Home Improvement Loan: for work on your home.
• School Support Loan: for school-related costs.
• Credit Builder Loan: designed to help build a credit history.
• Unsecured Loan: borrowing not secured against savings.
• Secure Savings Loan: borrowing secured against your savings.
• Payroll Loan: repaid directly from your salary where your employer is a payroll partner.
• Surgery & Cosmetic Loan: for medical or cosmetic procedures.
• EKCU+: an additional product in the range.

Credit builder loans are a common credit union product. One credit union gives an example where a member's credit score starts at 119 and ends at 169 at the end of the loan, though this is that credit union's own illustration and outcomes vary¹². Credit unions elsewhere offer similar products, including secured and unsecured loans and credit builder loans¹³.

If you are weighing up borrowing options more broadly, loans: a complete guide and credit scores and credit reports: a complete guide explain how lenders assess applications.

How the charges on loans work

East Kilbride Credit Union states that, unlike many lenders, it does not charge any arrangement or set-up fees⁸. That means the cost of borrowing is carried in the interest rather than in upfront charges.

How interest is calculated matters as much as the rate. Some credit unions charge interest on the reducing balance, so the interest is worked out on what you still owe rather than the original amount. Others publish a monthly rate that applies to the balance outstanding, and the rate can step down as the amount borrowed rises. The rate that applies to a particular East Kilbride Credit Union loan, and whether it is charged on the reducing balance, is set out in the credit union's own loan pages and in the credit agreement you sign.

Some credit unions also apply fixed admin charges on loans¹⁵. Where a loan is secured against savings, the savings act as security, which can affect what happens if you fall behind.

Early repayment charges are a feature of some loans, usually charged as a percentage of the overall loan that reduces over time¹⁶. Whether a particular East Kilbride Credit Union loan carries one is set out in its own terms.

Free insurance on savings and loans

Many credit unions include life cover on savings and loans at no direct cost to the member. This is a feature of the credit union model rather than a product you buy separately.

Enterprise Credit Union describes "free protection on life savings and loans", and states that members receive free insurance protection on savings and loans subject to policy terms and conditions, at no extra cost¹⁷. Kildress Credit Union states that all loans granted are insured by the credit union with no cost transferred to the member¹⁹. Kilkeel Credit Union offers Loan Protection and Life Savings Insurance at no direct cost to eligible members²⁰. Eastern Savings & Loans Credit Union offers free life insurance on all of its credit union saving products, with terms and conditions applying²¹.

The cover is arranged by the credit union and is subject to the policy terms, so what is covered and who is eligible depends on the scheme. East Kilbride Credit Union's own pages set out what applies to its members.

Who can join East Kilbride Credit Union

Membership of a credit union depends on sharing a common bond with other members, such as living or working in the same area³. East Kilbride Credit Union's common bond covers people who live or work in South Lanarkshire, North Lanarkshire, Renfrewshire or East Renfrewshire¹.

To join you must be aged 18 or over, or have a sponsor if you are under 18¹. Anyone in the house of a person with a common bond with a credit union can usually join as well, so household members may be eligible even if they do not meet the area test themselves²².

You need to be a credit union member to apply for a loan²³. Membership is the gateway to both saving and borrowing.

How to join: online, in the office or by phone

There are three routes: apply online through the online application form, visit the office during opening hours, or call 01355 224771⁸.

If you join online, you make an initial deposit of £10.00 and complete an online identification check, which the credit union states is not a credit search¹. If you join at the office, the minimum deposit is £5.00 and you need one form of photographic ID, such as a passport or driving licence, plus one form of proof of address dated within the last three months¹.

Credit unions generally ask for two recent documents to prove identity and address, which can include a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill²⁴. Other credit unions ask for two forms of identification to join²⁵.

If you join online and turn out not to be eligible based on the common bond, East Kilbride Credit Union refunds your full deposit to your debit or credit card and notifies you that your account is closed¹.

Repaying a loan by standing order or payroll deduction

East Kilbride Credit Union offers two repayment routes: standing order or payroll deduction⁵.

A standing order is a regular payment you set up from your bank account directly to East Kilbride Credit Union⁵. A payroll deduction means that, if your employer is one of the credit union's payroll partners, repayments are deducted directly from your salary⁵. Payroll deduction is common across the movement: other credit unions accept payroll deduction, standing order, PayPoint, cash or direct debit²⁶.

All loan repayments should be made on or before your payment due date⁵. When making payments, quote your member number and surname as the payment reference so the credit union can match the payment to your account⁵.

When repayments are missed

Missing payments may result in your loan account falling into arrears⁵. If arrears persist, the account can be brought to the attention of the credit union's credit control committee, which is how one credit union describes its process²⁷.

A rule that matters for credit union borrowers: if you miss payments on a loan, the credit union may be able to use your savings to repay the loan²⁸. That is different from borrowing from a bank, where your savings elsewhere are not automatically available to the lender.

Missed payments can also affect your credit file. A default usually happens after you have missed between three and six months' payments³⁰. If you think you might miss a payment, contact the lender as quickly as possible to discuss your options³².

If you are struggling, free and impartial help is available. StepChange and National Debtline both offer debt advice, and debt: a complete guide to help, solutions and your rights sets out the options. Credit unions themselves are often described as an alternative to high-cost lenders for people who need affordable credit¹⁴.

FSCS protection for your savings

East Kilbride Credit Union is covered by the Financial Services Compensation Scheme (FSCS)². The FSCS protects up to £120,000 in total across all accounts you hold with the credit union¹¹.

The limit applies to the combined amount in all of an eligible depositor's accounts with the credit union, including their share of any joint account, not to each separate account². For joint accounts, each account holder is treated as having a claim in respect of their share, so a joint account held by two eligible depositors is protected up to £120,000 each, making a total of £240,000².

Contacting East Kilbride Credit Union and complaining

The credit union can be reached on 01355 224771, through the online application form on its website, or by visiting the office during opening hours⁸. Its website is www.ekcreditunion.co.uk⁶.

If something goes wrong, credit unions have a complaints process. One credit union sets out a formal complaints procedure on its site, which is typical of how the sector handles disputes³³. If a complaint is not resolved to your satisfaction, you can take it to the Financial Ombudsman Service, which covers credit unions as FCA-authorised firms.

East Kilbride Credit Union also runs a benefits and support page, pointing members towards financial support they may be entitled to. It states that "many people across Scotland are entitled to financial support they may not realise they can claim"⁶. For more on what is available, see benefits in the UK: a complete guide.