Credit Saver - The Co-op Credit Union

Credit Saver is our new revolving credit account which gives you fast access to credit whenever you need it.

Get a pre-approved credit balance of up to £2,000 – so there’s no need to re-apply each time you want to borrow. APR is charged at 34.8% when the credit facility is used.

Enjoy same working day access to withdraw cash up to your credit limit.

Just make a minimum payment each month. It grows your savings when you’re not using the credit facility – and repays your loan when you are.

Apply now with Nivo

Applications are via our secure app, Nivo – find out more about Nivo

How does it work?

It’s a bit like a credit card or overdraft facility, without the plastic card.

You apply for a pre-approved credit limit of £500, £1,000 or £2,000 which will be available for you to use whenever you need it.

Each month, you’ll pay in a fixed minimum amount to your account. If you’re in credit, this goes to build your savings, or if you’ve used the credit facility, this goes towards paying it off.

You may overpay without any penalty at any time and may choose to repay at a higher rate than these minimum fixed repayments provided these higher payments are affordable to you

The fixed minimum amount* is based on the repayment needed to clear a loan of the same value as your credit limit over a reasonable period (see table for details).

*You will also need to save £10 per month in your regular shares account.

As a responsible lender, our Credit Saver account is different to a bank credit card where making only the very minimum payments can leave you paying interest for years and years without reducing the debt. Our repayment plan ensures you keep on top of any borrowing and helps you build up savings when you’re not using the credit facility.

Is it right for me?

The product has been created for members who would like a flexible borrowing and saving facility for occasional borrowing requirements.

It offers the convenience of knowing credit is available to dip into if needed without the need re-apply each time, and the consistency of a fixed payment amount each month, which is added to savings when the credit facility is not being used.

However, Credit Saver is not suitable for members who wish to access the full credit limit indefinitely. If you are not intending to make regular savings at the level of the minimum repayment amount, then you should consider if a standard personal loan product may be more suitable for your needs.

Note: Credit Saver accounts will be reviewed at least once per year to assess whether the product continues to work well for you. If you pay in and draw down at or around your full credit limit consistently then we would work with you to repay the balance sustainably, including possibly converting your loan to a standard personal loan without a credit limit. This is a limited pilot product and therefore we will only be offering it to a small number of members initially. During the pilot the product will only be available to apply for and manage via the Nivo app

Terms and Conditions and Key Features

Credit limit

You can apply for a credit limit of £500, £1,000 or £2,000, which once approved, you are permitted to draw down at your discretion.

Members may apply for Credit Saver in addition to an existing loan product.

Fixed repayment amount

You will agree to a fixed repayment amount based on the assumption of repaying the full credit limit within a reasonable time frame (1 year, 18 months or 2 years for £500, £1,000 or £2,000 respectively). This fixed repayment will be made continuously, whether or not you have an outstanding credit balance, and where you have no outstanding credit limit your payments will result in an accumulation of savings

Interest

Using the Credit Saver credit facility will incur a fixed interest rate at 34.8% APR.

Savings

The credit facility is linked to a flexible savings account which can be drawn upon at any time and into which payments will accumulate when no credit balance is outstanding. You have the choice whether or not to use savings before drawing on the credit facility. You also have flexibility to use the savings while you have a credit balance.

Your savings with Credit Saver are eligible for an annual dividend, as per your regular shares.

Periodic account review

The product is not intended to be used such that the full credit balance is exhausted and you remain at or around your credit limit, for example, drawing down on new credit repeatedly as payments are made in. Credit Saver accounts will be reviewed at least once per year to assess whether the product continues to work well for you. If you pay in and draw down at or around your full credit limit consistently then we would work with you to repay the balance sustainably, including possibly converting your loan to a standard personal loan without a credit limit. All accounts will be reviewed at least annually regardless of the nature of use.

Credit Saver applications are subject to our usual lending policy and affordability checks. If you have been unsuccessful with a loan application with us in the last 3 months or have CCJs or defaults elsewhere you are unlikely to be successful. See further details below.

Minimum term of loan – 1 week. Maximum term of loan – 2 years. APR 34.8%. Please see our terms and conditions and privacy policy for details on the use of your personal information by ourselves and credit reference agencies.

Good to know: funds held in all your credit union accounts combined are protected under the Financial Services Compensation Scheme up to £85,000. Visit fscs.org.uk for full details.

All loan applications are subject to our Loan Approval Policy. Members who have been declined for a loan with us in the last 3 months are not eligible to apply. We will check your credit history and assess the affordability of loan repayments by reviewing your bank account(s). We may also request additional supporting information depending upon your circumstances, such as payslips, ID documents or immigration paperwork. All lending decisions are ultimately at the discretion of our team. We always do our best to say “yes” but unfortunately that is not always possible. We will be happy to provide information about how we made any decision upon request.