Question 1

Who can apply for a loan?

Accepted Answer

You’ll need to be:

• Between the ages of 21 and 65
• Living in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man)
• Employed and earning £18,000 or more (it doesn’t matter if you’re paid monthly or weekly

Please note that we are not currently accepting self-employed applicants.

Question 2

What’s a soft credit search?

Accepted Answer

A soft credit search gives a view of your credit history without impacting your credit score. Other lenders won’t be able to see the search has been made. We run a soft search when you request a personalised quote, and then show you the APR you will be offered if you go onto take out a loan with one of the credit unions we work with.

If you go onto accept your loan agreement and apply for the loan, we will run a hard credit search and get more detailed information about your credit history. Unlike a soft search, this can affect your credit score and other lenders will know about it. If you have a lot of hard searches in a short period of time, it can make lenders less likely to want to lend to you as it could look like you are becoming reliant on credit.

Question 3

What is an easy access savings account?

Accepted Answer

An Easy Access Savings Account allows you to deposit and withdraw your money at any time without being charged fees. In addition, you earn interest on the balance. The interest rate is usually lower than Fixed-Term Savings Accounts (link) but provides more flexibility in accessing your money.

This makes the Easy Access Savings Account a great option for money you may need to access in an emergency, like your car breaking down, or for short-term savings.

My Community Finance introduces customers to credit unions who offer Easy Access Savings Accounts with competitive interest rates and no fees.

Question 4

What are credit unions?

Accepted Answer

Credit unions are not-for-profit financial organisations providing savings, loans and other financial services. Just like high-street banks, the credit unions we work with are authorised and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).

Their reference numbers are as follows: Castle Community Bank – FRN 213877 and My Community Bank – FRN 213245.

To open a savings account with one of our the credit unions we work with, you’ll need to become a member. Between them the credit unions we work with accept members from almost all areas of employment, as well as those part of organisations such as the Co-Op, National Trust and some Trade Unions and other associations – see the next FAQ for more details about credit union membership. There are no costs associated with membership.

Credit unions use their members savings to offer fair and affordable loans.

Question 5

How do I apply for a savings account?

Accepted Answer

To apply for a savings account you'll need to:

Choose between a Fixed Term Savings Account and an Easy Access Savings Account
Fill in the application form for the account you want to apply for
Accept your savings account terms and conditions

The credit union you’ve been matched with will then review your application and get in touch if they need any further information.

Question 6

Where are my savings held?

Accepted Answer

Your savings will be safely held with one of the credit unions we work with. Your money is protected by the Financial Services Compensation Scheme (FSCS) up to a value of £85,000 per person.

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