More people will be able to join credit unions

The government is changing the rules on who can join credit unions to open them up to more people.

Ministers believe expanding access to low-cost borrowing and secure savings will help households with the cost of living.

What are credit unions?

Credit unions are community-based financial organisations that exist to benefit their members rather than to make profit.

Members save together so they can offer each other fair, low-interest loans.

The members of a credit union will share something in common.

For example, they might:

• live in the same area
• work for the same employer
• belong to the same community group 

And unlike alternatives like loan sharks, credit unions are authorised and regulated, which means your money is protected.

What’s changing?

Under the new system:

• credit unions will be able to serve larger areas - up to 10m potential members instead of 3m
• students can join
• more family or household members can join the same credit union
• people can remain full members after they retire or join later in life

“These reforms will help more people get access to affordable credit and a safe place to save, so families have a real alternative to high-cost credit,” said economic secretary to the Treasury Lucy Rigby.

She added that the reforms are "another step in making financial services more accessible and supporting people to build financial resilience".

How to get a credit union loan

If you think a credit union loan is for you, follow these steps:

• Search: see if there’s a credit union you can join at findyourcreditunion.co.uk.
• Join: apply online, by phone or in person. There might be a wait while they process your application.
• Save: some credit unions may ask you to start saving before applying for a loan.