Credit unions are the first stop of any customer who finds their credit scores inadequate to get banks to finance them. However, credit unions only have limited funding, which is why they can only choose select customers they can finance. If you want to get an affordable financing from a credit union, take note of the following.

1. Credit Scores

You might have a low credit score, but most credit unions will not consider your credit score. Instead, they base it on your financial capability, employment stability and current financial capability. You will be asked for an interview with one representative.

2. Common Ground

As credit unions have smaller vaults than banks, they select customers who share a “common ground” with them in terms of profession, race, nationality, ethnicity or industry. Try to find your own common ground first before heading to apply for a mortgage or any financing with a credit union.

3. Limits

Credit unions can only provide you a certain amount when it comes to home, car or any type of financing. It might not promise that it can pay for your item in full, but it can certainly promise you lower interest rates and flexible repayment options. You even have the option to pay for your refinancing with a small top-up amount with your regular repayments.


Payment protection insurance is a general term for an insurance that repays loans, mortgages and credit cards when the customer suffers injuries or is unable to work. Being a general term, it can also be named differently, but still function similar to a PPI policy. Here are the different kinds of PPI that exist, and may continue to be sold in the United Kingdom, today.

1. Credit Life Insurance
Credit life insurance is what usually comes with credit cards and loans that provide financing repayment in case of customers having health and unemployment problems. This type of insurance is a variant of PPI, and it costs more than the average single premium PPI policy.

2. Credit Disability Insurance
Credit disability insurance, also mis sold alongside credit cards and loans, covers your repayments in the event you become unemployed. It does not cover your repayments when you get sick or you face an accident. This is a single premium PPI policy and can commonly be mis sold by insurance brokers and banks.

3. Credit Accident Insurance
This is sold alongside loans, credit cards and mortgages and is also a single premium PPI that pays only for your financing if you get into an accident. The insurance policy does not cover being unable to pay due to unemployment .