Credit Unions are a good alternative way to borrow money or to start saving, especially if you are living on a low income. Some Credit Unions also offer basic bank accounts. In order to use a credit union, you must first become a member. They are also owned and managed by their members, on a not for profit basis.
With a Credit Union you can save as little or much as you want, and they have local service points so they are easy to get to.
As a member you can also apply for a loan. Everyone is considered, even those who would normally be turned down for a loan by a bank. The interest rates are much cheaper than doorstep lenders and the repayments are tailored to your individual circumstances.
Credit Unions will often offer even better (preferential) interest rates to members who have saved with them prior to taking out a loan.
The table below shows how much you could save by borrowing £500 from a Credit Union rather than a Doorstep Lender.
| Lender | Interest rate | Total amount repayable | Total charge for loan |
| Credit Union – standard interest rate | 26.8% | £561.13 | £61.13 |
| Credit Union – preferential interest rate | 12.7% | £534.06 | £34.06 |
| Doorstep Lender | 272.2% | £910 | £410 |
Some Credit Unions also offer current accounts. These will normally allow wages and benefits to be paid in, and offer standing orders and direct debit facilities to make paying your bills easier. There may be a fee charged for having a current account.
There are four Credit Unions in Cornwall, Cornwall Community Banking which can accept members from anywhere in Cornwall, Kerrier and the Fal Credit Union, North Cornwall Credit Union and Seccure for those in South East Cornwall.
Contact details
Credit Unions will have local service points, but the contact details for their main offices can be found below.
Cornish Community Banking
Address: 11A Frances Street, Truro, TR1 3DN
Telephone: 0800 0556873
Website: Cornish Community Banking
Kerrier and Fal Credit Union
Address: 57 West End, Redruth, Cornwall, TR15 2SQ
Telephone: 01209 314 449
Website: Kerrier and Fal Credit Union
SECCURE Credit Union
Address: 21 Dean Street, Liskeard, Cornwall, PL14 4AB
Telephone: 01579 346 999
Website: Seccure Credit Union
North Cornwall Credit Union
Address: Council Offices, College Road, Camelford, Cornwall, PL32 9TL
Telephone: 01840 213841
Website: North Cornwall Credit Union
Some terms explained
Direct Debit
A way of paying bills from your credit union account. You sign a form allowing the company you are paying to take the money directly from your account on specific dates. This form is returned to the company.
They then take the money from your account automatically on the agreed dates. They have to notify you in advance before changing the amount or the dates of the payments.
Interest
A charge for borrowing money, or a reward for saving money. It is usually shown as a percentage of the amount borrowed or saved.
Standing Order
Another way of paying bills from your credit union account. The company you are paying will send you a form. This sets out the amount to be paid and the payment dates. You then give this to your credit union.
The credit union pays the amounts from your account automatically. If the dates or amounts need to change, only you can change them by getting in contact with your bank. The company that you are paying cannot change them.
