Frequently Asked Questions
This collection of frequently asked questions (FAQs) provides brief answers to many common questions about Cambrian Credit Union (CCU) loans.
If your question is not answered then please contact us.
How much can I borrow?
CCU offer basic loans from as little as £50 up to £15,000 depending on individual circumstances. This means we look at your income and expenditure to see how much disposable income you have (what is left over after you have paid for your essential living expenses). This tells us how much you could afford to pay back every week, fortnight or month. If you have requested more than you can afford to pay back we may offer you a lower amount.
What repayment options are available?
There are three main ways to make loan repayments. These are by standing order from your current account, having benefits paid into your account or via payroll deduction where the loan repayment is deducted directly from your wages/salary.
Why won’t you call at my door like other companies?
As an ethical lender we aim to keep the costs of our loans at an affordable rate of interest. If we were to provide doorstep lending this would dramatically increase our costs and therefore increase the rate of interest we can offer.
I have a poor credit history, can I still get a loan?
We consider all loan applications carefully. If you can provide evidence that you are trying to repay and resolve your previous debts we will consider giving you a loan. In addition we may be able to help you consolidate some or all of your existing debt into one affordable repayment. We assess each applicant individually analysing income and expenditure so our loan decisions are based on your ability to repay the amount you borrow. If we feel you would be worse off by borrowing we will refer you to an agency that can help. You can find more from our financial health page
Why do I have to provide so much information?
As we do not use a point-scoring system we need to get to know you as an individual and to fully understand your financial position. The information you provide gives us an overall picture of the amount you can afford to repay on a loan amount requested and will inform part of our decision on whether to grant the loan or not. All the information you provide is confidential and only used to assess your loan application.
We always try to provide a well balanced approach to our lending as well as safeguarding the interests of our members. One of the most important considerations in making a loan is the applicant’s capacity to repay. As a responsible lender we always ensure that any borrower has the ability to repay without sacrificing other basic priorities such as rent, mortgage, and utility payments or even in extreme cases, putting food on the table. If you are in difficulty repaying any financial commitment see our financial health page for tips and suggestions on how better manage your money and about getting help managing debt
What is a credit rating?
A credit rating is a summary of your borrowing history. Every time you apply for credit such as an overdraft, loan, credit or store card the lending organisation will do a search on your name and address to see whether you pay back your loans. If they grant you credit and you fail to make a payment or are late in making a payment they will record this with a credit reference agency. If you pay on time this is also noted. Paying on time increases your rating, paying late or failing to pay decreases your rating. You can check your credit history by visiting Experian, Equifax or Call Credit.
How can I improve my credit rating?
Your credit rating will be low if you have never borrowed money or you have never paid for household bills in monthly instalments (a form of credit). It seems strange, but it tells a business that is interested in your credit worthiness that you cannot prove you are able and willing to pay back a loan/credit card/mortgage/bill etc.
One of the first thing you should do if you want to build a good credit history is to register where you live with the electoral roll.
To find out more about building a credit history we couldn’t do better than Martin Lewis’s advice on his money expert website. There is also a useful tool to help you understand your own credit history which you may find helpful before applying for your loan.