Check If You Qualify

I need a personal loan but have a poor credit score, can a credit union help me?

Sharon McDougall - Updated - 2nd February 2024 - 2 minutes to read

What are Credit Unions in Scotland?

Credit unions in Scotland provide services to more than 375,000 people and one in 20 Scottish residents are members. 

Credit unions are an alternative way to build savings, or take out affordable loans. If you have a bad credit rating and are considering taking out a personal loan to consolidate your debts, a credit union is more likely to accept your application than a bank. Credit unions look at your personal situation too, rather than just your credit rating.

A credit union is a ‘not for profit’ organisation. Instead of shareholders obtaining a profit, money made by a credit union is spent on improvements to the services and rewards for their members.

Debt Calculator

Get a rough indication of what your monthly repayments might be under each of our different debt solutions.

How can you join a Scottish credit union?

To become a member of a credit union, you must share a common bond with other members, such as working for the same employer or living in the same area.

There are over 100 credit unions currently operating in Scotland, with around £200m in savings and £170m presently loaned to customers. Recently, the Scottish government’s Third Sector Enterprise Fund invested more than £1.3m into Scottish credit unions, which improve services and also encourage them to thrive and expand their customer base. Credit unions are also regulated by the Financial Services Authority, to ensure your money stays safe.

What happens if you take a loan from a credit union?

When you take out any loan, often there are hidden charges. If you’re lucky enough to be able to pay the loan back in full before the end of the agreed term, there are often penalties too. Borrowing from a credit union is different: there are no penalties for paying a loan early and no hidden charges either. Interest rates can vary, so if you’re unsure, it’s best to speak to a financial advisor before committing to anything, who, if it’s right for you, can then advise on how to apply to a credit union.

Usually, the length of a loan with a credit union is around five years (unsecured) or ten years (secured). For more information on what constitutes a secured or unsecured loan, why not contact our friendly, impartial team at Scotland Debt Solutions for confidential advice on what type of loan suits your personal situation.

What other options are there?

As well as loans, credit unions offer a range of savings packages, which allow you to save as little or as much as you like. Because credit unions are not run by profit-making shareholders, any money made from your savings benefit people just like you, often through yearly dividend payments.

So if you’re looking for a way to consolidate your existing debts into one loan, but your credit rating is holding you back, why not speak to our qualified experts about credit unions today as a possible solution to your debt problems.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners