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Definition · Glossary

Credit union

In plain English

A not-for-profit financial co-operative owned by its members. Credit unions offer savings accounts and loans, typically at lower rates than commercial lenders. You must meet their common bond to join (e.g. local area, employer).

Example

Your local credit union offers a £2,000 personal loan at 12.7% APR — lower than most high-street banks.

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