Finance Glossary
Credit Union
A member-owned, not-for-profit financial cooperative that offers savings accounts and loans to its members. Credit unions in the UK are regulated by the FCA and Prudential Regulation Authority. They typically offer lower interest rates than payday lenders and are a good alternative for borrowers who qualify for membership (usually based on employment, location, or community ties).
Example
A local authority employee joins their employer's credit union and borrows £800 at 12.7% APR — far lower than the 299% APR of a typical payday lender.
Related terms
Responsible Lending
The principle — and legal obligation under FCA rules — that …
Financial Conduct Authority
The UK's financial services regulator, responsible for overs…
Unsecured Loan
A loan not backed by any collateral. The lender relies solel…
Payday Loan
A short-term, high-cost loan typically designed to bridge th…
Now you know what Credit Union means — find your best loan
Free to use. Click directly to any lender to apply.
Compare all lenders →