Wales Co-operative Centre
Canolfan Cwdweithredol Cymru

What is a credit union?

Credit unions are financial co-operatives, owned and managed by the members who use them.

They offer an easy way to save, access low cost loans and a range of other benefits.

Membership of a credit union is based on a ‘common bond’, usually linked to where a person lives or works.

Members of a credit union save in a common fund. This fund is used to make low interest loans to the credit union members.

All interest on loans repayments is reinvested in the credit union and nothing leaves the community. 

What are the benefits?

Access to low cost loans

A credit union loan is usually the cheapest way of borrowing £2,000 or less and is often more competitive than other lenders on larger amounts.

Good returns on savings

Despite the current economic climate, many successful credit  unions pay an annual dividend on savings.

Secure savings facility

Like banks and building societies, credit unions are regulated by the Financial Services Authority so you can feel confident that your money is safe.

Built-in life insurance

And other benefits.    

There are currently 22 credit unions in Wales. Internationally credit unions operate in 97 countries and serve over 186 million members.

Phone the Credit Unions in Wales Helpline 0800 496 0865 for more information and to find your nearest credit union.

CU@theCU

CU@theCU (external website) is a learning website about credit unions designed by secondary school students.

More information

Opening the door to financial freedom (.pdf)

Helping you to help families - financial support guide (.pdf)

Stop Loan Sharks - poster for those who provide support (.pdf)