Swansea's Credit Union

A Credit Union, what's that then?

Credit Union's are a brilliant idea. These financial organisations are able to help anyone who has perhaps found themselves in a position of financial difficulty, unable to get credit and finding it difficult to save for that rainy day!

They are a superb and ethical alternative to the high interest door to door credit companies, for those who feel that these are the only avenues of credit available to them.

Even if you do not fall into either of these categories, Credit Union membership is available to anyone who might wish to save a little extra with an independent financial organisation other than the bank or building society.

Why are they so brilliant?

That is the best part! A Credit Union is owned and operated by its members, but regulated by the FSA (Financial Services Authority); these are the same people that regulate our Banks, Building Societies and all major licensed credit companies. However, because a Credit Union is owned by its members, this means that everyone has a vested interest, so therefore they do not need to charge exorbitant interest rates. For example, did you know that if you borrow £100 from the Credit Union you will repay just £12 in interest! That cannot be bad!

How does it work?

Easy, everyone who is a member saves money. This money is then "pooled" together. Then when you want to borrow some cash, your loan is "drawn" from this pool of money; your own savings are not touched! Good eh! This means you are able to borrow AND continue to see your savings grow at the same time.

And, because all loaned money is drawn from the same pool, a Credit Union does not need to charge its members (or itself in effect) ridiculous interest rates.

That's not all, if there is a surplus at the end of each financial year; every member receives a dividend on their savings. The rate of the dividend is variable, but can be as much as a maximum of 6%.

Hang on, isn't that a bit self serving?

Well yes. But that is the whole idea, a Credit Union offers its members "a better way to save and borrow". It makes mutual financial sense for everyone. The Credit Union earns a little interest so that the pool of money continues to grow, thus enabling it to help more people. At the same time its members benefit from borrowing money at a sensible rate.

Of course you do not need to borrow, you can choose to just use your account to save and at the end of the year receive a dividend on your savings.

How do I find out more

Pop along to Forge Fach on a Wednesday between 12 and 1pm, and we will be delighted to tell you more, including how you can join.

Or alternatively, you can ring LASA Credit Union on: 01792 643632, where someone will be delighted to talk to you.

You can also visit their website at: www.lasacreditunion.org.uk