A Credit Union is a money co-operative (community bank)which is owned and run by its members. Members regularly save as little or as much as they like, which creates a pool of money from which they can borrow. Members can apply for a low interest loan after just ten weeks' saving. The amount you can borrow will depend on your savings and loan repayment record-not external credit checks.
Pitsmoor Credit Union is a locally managed savings and loans co-operative whose members live in the Burngreave/Pitsmoor area. Members are encouraged to save regularly, from as little as £1 a week. Savings help them to cope with unexpected larger expenses, and can also be used as (part) security for a cheap loan when necessary.
Once members are used to making regular savings payments, even from a low income, regular loan repayments are not a problem. Payments are made by standing order, at a post office or at local collection points run voluntarily by members. The interest charged on loans (1% a month) helps with the costs of running the office, insurances and fees to the Financial Services Authority (FSA). All credit unions are regulated by the FSA.