What is a credit union?

A credit union is an alternative form of financial borrowing which many people will use if they do not qualify for a high street bank loan.

Credit unions are often small and will be a non-profit organisation. The individuals that set up a credit union will have something in common whether that be that they are from the same community or work together.

The purpose of a credit union is to share advice with people within your union is hope to encourage them to save money. As well as sharing advice the union will share finances in times of difficulty but if the union is successful the member will learn to save and to not borrow more than they can repay.

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About Information About Credit Ratings 2016

What is a credit union?

A credit union is an alternative form of financial borrowing which many people will use if they do not qualify for a high street bank loan.

Credit unions are often small and will be a non-profit organisation. The individuals that set up a credit union will have something in common whether that be that they are from the same community or work together.

The purpose of a credit union is to share advice with people within your union is hope to encourage them to save money. As well as sharing advice the union will share finances in times of difficulty but if the union is successful the member will learn to save and to not borrow more than they can repay.

Information About Credit Ratings and How to Improve Them 2016

Credit Rating

During times of financial difficulty many people will turn to banks in the hope to get a low interest loan, unfortunately for some this is not an option due to obtaining a low credit rating.

Financial difficulty can become a problem for the most financially organised person, sadly unexpected circumstances can occur in life with assets which cause you costs which you cannot afford. Anything from your car breaking down to damp appearing in your property. There are solutions but they come at a price.

There are alternatives methods available for those that need to borrow money and cannot get a high street bank loan:

What Negatively Impacts Your Credit Rating

There are some simple mistakes that you make financially that can cause your credit rating to worsen such as missing a payment on any contract including credit cards, gym memberships and electricity bills.

A common way in which people cause themselves to have bad credit ratings is through having previous or current debts. The longer you obtain the debt and do not pay it, the worse your credit rating will become.

Ways to Improve you Credit Rating

It is much more difficult for you to get rid of a bad credit rating than to get one. If you are trying to improve your current credit rating because it is poor, there are a few steps that you can follow;

  • cancel any credit cards that are in your name but you do not actively use
  • do not apply for credit if you know that there are problems on your personal credit file
  • sign up to the electoral role, if you are not on the electoral role it will be much harder to get credit from banks

(This information website has no relevance to Communisave South Birmingham Credit Union)