Can I join a credit union?

Are you curious about joining a credit union but not sure if you can, or need help with the process? 

In this guide, we’ll explain what joining a credit union involves, how to find out if you're eligible and how to apply. 

What is a credit union?

Credit unions are not-for-profit financial organisations. They support both borrowers and savers, though the specific products offered can vary between credit unions. 

Everyone who wants to open an account with a credit union needs to become a member first. 

Who can become a credit union member?

Each credit union has certain criteria you need to meet to be eligible for membership.

This often includes factors such as:

• Living or working in the same area as the credit union 

• Working for the same employer as other members 

• Belonging to the same church 

• Belonging to the same trade union 

The number of people eligible for membership can vary significantly across credit unions. Some have a very narrow criteria, for example working in a certain profession or living in a certain location. Others may accept multiple locations or professions. 

The credit unions we work with at My Community Finance have some of the broadest membership criteria. They welcome members from almost all fields of employment as well as those part of certain organisations, such as the Co-Op and the National Trust. When you submit an application for a savings account or loan through My Community Finance, we will match you with one of the credit unions we work with. 

In addition to more specific criteria related to employment, location and organisation membership, many credit unions also have basic age and geographic requirements. 

For example, to be eligible for membership from the credit unions we work with, you’ll also need to be:

• At least 18 years old

• Living in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man)

• Have a personal bank account in the UK 

If you're interested in joining a credit union, and want to know more about the membership criteria, it’s best to go to them directly for the latest information.  Nowadays, many credit unions have websites where this is published. Most credit unions make it easy to get in touch if you have questions on eligibility requirements. This could be by phone, email, webform or social media.

How old do I need to be to join a credit union?

Most credit unions accept anyone over the age of 18, as long as they meet their other membership criteria. Some credit unions offer youth accounts and allow members as young as 16 to join.

To be eligible to join the credit unions we work with, you’ll need to be aged at least 18. 

Can I still become a credit union member even though I'm not from the local area?

Whilst eligibility criteria for a lot of credit unions is based on location, there are still plenty where this isn’t the case. 

For example, some credit unions look for membership of certain professions or organisations instead. Some will even accept members who live in different countries, as long as they work for a company or organisation associated with the credit union.

A lot of credit unions with geographic requirements accept the location of your place of work, as well as your home. It’s therefore worth checking if this would qualify you instead.

It's best to do some research into the credit union you want to join to understand if they have geographic requirements and what these look like. If you’re not sure, you can contact them to see whether they’ll allow you to join, even if you live in a different area. 

If you’re open to which credit union you become a member of, consider applying via My Community Finance. The credit unions we work with don’t have any geographic requirements beyond living in the UK (excl. Northern Ireland, the Channel Islands and the Isle of Man).

Can I join a credit union if I'm self-employed?

As long as you work in a certain industry, many credit unions will still let you join if you are self-employed or a freelancer. 

Alternatively, you could look for a credit union where you meet the geographic or organisational requirements. For example, a credit union that is local to you or accepts members of organisations that you’re part of (the credit unions we work with accept members from organisations like the Co-Op, National Trust and more!)

Because of their different membership criteria, it’s important to research the credit union you want to join. This will help you confirm whether you’ll be accepted for your profession if you’re self employed or if you could be eligible through another criteria.

Can I join more than one credit union?

Yes, you are usually able to become a member of multiple credit unions, as long as you meet their different eligibility criteria. 

It can be a good idea to compare the different products and rates you could get with the credit unions you’re eligible to join. You can then decide if it makes sense to become a member of more than one. 

Does becoming a credit union member mean I can open any account I want with them?

No - depending on the account you want to open additional checks or eligibility criteria may apply. 

For example, if you are applying for a credit product, like a loan, you will need to pass affordability and credit checks for the loan you want. 

Other accounts are only available to members with certain employers. For example, some credit unions offer savings accounts where you can make deposits from your monthly income before it lands in your account. However, this requires your employer to be signed up to the scheme.  

Can I join a credit union if I have a bad credit score?

Having a poor credit history may not prevent you from joining a credit union. If you meet the eligibility criteria, most credit unions will let you join and open a savings account without even checking your credit score.

If you have a bad credit score, it may impact your ability to borrow money from a credit union. However, they each have their own lending policy so your eligibility to borrow will vary between credit unions.

Do I need to leave money in my account to remain a member of a credit union?

Yes - credit unions usually require members to have at least £1 saved with them to remain a member. 

The minimum balance may vary between credit unions, so check with the particular credit union you're considering to find out about their requirements for keeping your membership.

Can I still be a credit union member if I get a new job?

If you are eligible to be a member of your credit union for reasons other than your job, you should be able to stay a member if you move roles.

If your initial membership application was accepted because of your job, there’s a good chance you will still be able to remain a member once you move. This is because if you stay in the same industry, your eligibility may still count, or you could be eligible for other reasons such as your location or organisations you’re a part of. 

It is a good idea to check the membership policy of the credit union you're a member of to make sure you remain eligible after landing a new job. 

Can I still be a credit union member if I relocate?

If you are eligible to be a member of your credit union for reasons other than where you live or work, you should be able to stay a member if you relocate.

If your initial membership application was accepted because of your location, you may want to contact the credit union you’re with to confirm their policy regarding membership and relocation.

Whilst this can vary between credit unions, in many cases you can still maintain membership of a credit union even if you move.

How do I find a credit union to join?

To find a credit union that you're eligible to join you can:

• Search online: Use online search engines to get an idea of what credit unions are available in your area of for professions or organisations that you’re part of

• Use My Community Finance: If you apply for a loan or savings account via My Community Finance, we will try to match you with one of the credit unions we work with

• Through ABCUL: The Association of British Credit Unions (ABCUL) offer a search function to help you find credit unions you may be eligible to join

• Regulatory authority: The Financial Conduct Authority (FCA) can provide information about registered credit unions

• Ask loved ones: If you know friends or family who are members of a credit union, ask them about their experience and whether they can recommend a credit union for you. Sometimes you are automatically eligible to join a credit union if someone in your household is already a member