Partners Credit Union

Partners Credit Union is a member-owned credit union based in Liverpool. It is not a bank: it is a not-for-profit community lender that takes in members' savings and uses them to fund loans to other members¹. It offers a range of loans, from a Starter Loan for people new to borrowing through to larger Flexi and secured loans, alongside savings you build up while you repay³.

To join, you need to live in the Liverpool City Region, Cheshire West and Chester, Warrington Borough Council, West Lancashire Borough Council or Wigan Metropolitan Borough Council⁴. Membership is the gateway to everything else: you must be a member to get a loan, and you join online⁵.

Most lending decisions are made within 24 to 48 hours once all the information is received, and most complete applications are processed and paid out within 7 to 10 working days³. Savings are protected by the Financial Services Compensation Scheme, and the credit union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority⁷.

Loans from Partners Credit Union: from Starter to Flexi

Partners Credit Union runs a ladder of loan products rather than a single loan. The range includes a Starter Loan, Bronze, Silver, Gold and Platinum loans, a Helping Hand Loan, a Flexi Loan for employed members, a loan secured by shares, a Trade Union loan, a Fast Track option for new members, a Payroll Advantage loan, a New Member loan and a School Uniform Loan available in August only³. The idea is that a member can start small, build a repayment record, and access larger or more flexible borrowing over time.

Credit unions generally offer loan products suited to individual needs at rates members can afford, and they are one of the alternatives to high-cost same-day loans, alongside budgeting loans, bank overdrafts and salary advances¹⁰. All credit unions offer savings and loans, and most also offer free life or loan-protection insurance¹².

Partners Credit Union describes itself as a member-owned organisation, different from banks and payday lenders³. It says its loans carry no hidden fees or arrangement charges³. It does not publish a single rate across the range, because the cost depends on which loan you take and how much you borrow; the credit union's own site and loan calculator are the place to see today's figures for a specific product³.

If you are weighing up borrowing options more broadly, our guide to loans sets out how different types of borrowing work and what to compare.

How loan costs and repayments work

Credit union loans are typically calculated on a reducing balance, which means you pay less interest with each repayment as the amount you owe falls¹³. Some credit unions describe this as the repayment plus interest method, where the amount paid every month is repayment plus interest at a reducing rate, so the initial payments are greater than the final ones¹⁴.

The rate you are charged depends on the loan product, the amount borrowed and the term, and it is set by the credit union rather than published as a single figure across the range. Partners Credit Union's own site and loan calculator show the cost of a specific loan, including the monthly repayment and the total amount payable, before you commit³. Credit unions are capped in what they may charge, so the cost of a credit union loan is not open-ended in the way a payday loan can be¹⁰.

Partners Credit Union allows early repayment at any time, and interest is only charged to the end of the month in which you settle the loan³. That matters if you come into some money or want to clear the debt faster: settling early cuts the interest you pay. The wider credit union sector works the same way, with most credit unions allowing you to pay off a loan early, make lump sum repayments or increase regular repayments without a penalty¹³. The Affordable Credit Code of Good Practice, which some lenders sign up to, says customers should have the option to repay early with no additional costs¹⁶.

Repayments can be weekly, fortnightly or monthly, depending on the loan⁹. If you are comparing the total cost of borrowing, our guide to credit scores and credit reports explains how lenders assess applications and what appears on your file.

Loan Protection Insurance included with eligible loans

Eligible Partners Credit Union loans include Loan Protection Insurance at no additional cost³. The insurance may repay an eligible outstanding loan balance in the event of your death, subject to policy terms and conditions³. The policies are purchased and owned by the credit union, which is the policyholder; individual members are not policyholders⁷.

This is a common feature of credit union lending rather than something unique to Partners. Most credit unions offer free life or loan-protection insurance, and it is described as insurance cover the credit union provides on the lives of its borrowing members¹². Other credit unions describe it as free loan protection included, offering extra security for you and your family¹⁸.

The credit union also offers a loan age enhancement that allows it to consider lending to members aged over 70, subject to an affordability assessment and normal lending criteria⁷. Partners Credit Union lends to eligible members aged 70 to 84³.

Saving while you borrow

Partners Credit Union lets you build savings at the same time as borrowing³. This is a feature of credit union lending generally: members' savings are used to fund loans to other credit-worthy members, so saving and borrowing are two sides of the same system².

Across the sector, credit unions are saving schemes run by their members which also allow you to borrow two or three times as much as you have saved at a low interest rate¹⁹. If you are a member of a credit union, you can usually borrow at least two or three times the amount you have in savings, depending on the loan policy of your credit union²⁰. Some credit unions ask you to build up savings first before you can borrow²².

The practical effect is that regular saving with a credit union builds both a cushion and a borrowing record. If you join a credit union and start saving with them, you will also be able to apply to borrow money once you have proved you are a reliable saver¹⁹. For more on how savings accounts work and what to compare, see our guide to savings.

Who can join: the Liverpool City Region and surrounding areas

Membership of a credit union is based on a common bond, which means members share something in common such as living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union²³. Anyone can become a member, but you must share that common bond with other members²⁴.

Partners Credit Union's common bond covers people who live in the Liverpool City Region, Cheshire West and Chester, Warrington Borough Council, West Lancashire Borough Council and Wigan Metropolitan Borough Council⁴. Its team is Liverpool-based³. Other credit unions in the same region have similar but not identical boundaries: one covers anyone who resides or is employed in a Liverpool post code¹⁵.

To join, you apply online through the credit union's join page⁵. Credit unions generally ask you to visit or call to confirm what information you need to join, so it is worth checking the requirements before you start²⁴. Once you are a member, you can register for online services and download the app⁴.

If you are not in the eligible area, you can find a credit union that covers where you live through the sector's finder service¹². Our guide to credit unions explains how the common bond works across the UK.

How loan applications are assessed and why they can be declined

Partners Credit Union considers income, expenditure, existing borrowing, credit information and affordability when it assesses an application³. Credit unions always consider affordability when assessing loan applications¹.

An application can be declined for a number of reasons:

• the loan is not affordable³
• existing debt is too high³
• borrowing may cause financial harm³
• information is missing³
• the lending criteria are not met³

These are the credit union's own stated reasons, and they show that a decline is usually about affordability and completeness rather than a single credit score.

It is worth knowing where credit union lending sits in the wider rulebook. The Financial Ombudsman Service notes that for credit union loans, the standards a lender may have needed to meet before lending, for example the level of checks, will typically be lower than those imposed on lenders and loans covered by the Consumer Credit sourcebook²⁵. That does not mean credit unions lend irresponsibly; it means the regulatory expectations are different, and affordability is still central¹.

If you are declined, it is worth asking why and whether anything can be changed, such as clearing other debts or providing missing documents. Our guide to credit scores and credit reports explains what lenders see and how to check your own file.

Managing your account through the app and online services

Partners Credit Union uses the Incuto app, which you download from your app store or activate online⁴. The app gives you access to your savings and lets you manage your accounts and apply for loans²⁶. You can also register for online services through the credit union's website⁴.

You can make a payment into your own account, or another member's account, at any time using your debit card⁹. That is useful for paying into a family member's savings or loan account. Credit unions more widely accept payments by payroll deduction or through benefit direct accounts, through retail payment networks such as PayPoint and PayZone, by standing order or direct debit, or in cash at local offices and collection points²³.

If you are used to a high street bank, the main difference is that a credit union's app and online services are built around savings and loans rather than a full current account. Our guide to current accounts explains what a standard bank account offers if you need day-to-day banking alongside your credit union membership.

Help if your circumstances change

Partners Credit Union says it may be able to help if your circumstances change, with payment arrangements, reduced payments, extended terms and signposting to free advice³. That is a commitment to work with members who fall into difficulty rather than simply pursue them.

If your income drops because of a change in benefits, you have a duty to report it. If you get Universal Credit, you may be asked to confirm whether your circumstances have changed in a way that could affect your payments, and you report changes using your Universal Credit online account if you have one or by contacting the Universal Credit helpline²⁷. If you have difficulty reporting, you can leave a note in your journal or call the helpline²⁹.

If your financial situation gets worse, for example you lose your job, you can try to negotiate another arrangement with your creditors; if your circumstances improve, your creditors may expect you to increase your repayments³⁰. If you are worried your partner might control or misuse your money, you can ask your work coach for separate or more frequent Universal Credit payments confidentially³¹.

For free, impartial help with debt, you can contact a debt advice charity. Community-based debt advice services are available across the country, and our guide to debt sets out the options and your rights.

How your savings are protected

Savings with Partners Credit Union are protected by the Financial Services Compensation Scheme⁷. Credit union loans and savings are protected by the Financial Services Compensation Scheme, and all shares (savings) in an affiliated credit union are eligible for protection under the scheme¹. One credit union describes the protection as safeguarding savings up to £120,000¹⁸.

Partners Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority⁷. Its firm reference number is 213715, and it appears on the Bank of England's list of UK-incorporated credit unions⁸. Its FCA permissions include accepting deposits⁸.

The membership handbook forms part of your membership agreement and should be read alongside the rules and any individual credit agreement or product-specific terms⁵. The current version replaces all previous membership terms and conditions and any earlier versions of the membership handbook or membership terms⁵.