Tel: 01274 434100 Fax: 01274 432830 Email:

18 August 2017

What is a Credit Union?

Credit Unions are mutual savings and loans societies. Membership is based on a ‘common bond’, something which links members together. Our common bond is that members either live or work in the Bradford District. There are about 700 credit unions in Great Britain with over 300,000 members and around £200m in assets. There are credit unions around the world, with very high memberships in the USA , Canada , Ireland and Australia.

Can I be a member of Bradford District Credit Union?

If you either live or work in the Bradford District, you are eligible to become a member of the Credit Union. Please download an application form. Alternatively, contact the office and we will send you an application form.

Who runs the Credit Union?

The Credit Union is owned and controlled by the members. A Board of Directors is elected annually and they make decisions on the running of the Credit Union.

How is the annual dividend calculated?

After operating costs Credit Unions must set aside reserves out of their profits to cover tax and other contingencies. The remainder of the profit is given back to members as a dividend. The members of the Board of Directors decide how much to set aside and what the dividend will be.

How is a loan paid to me?

When a loan is approved and the loan agreement signed, the money is normally released by a BACS transfer to your bank account, or by a cheque made payable to you.

How do I make repayments?

Repayments are normally taken by payroll deduction or standing order, but we can also accept cash payments in the Office or via the Kiosks. Loan repayments terms can be tailored to your needs & are usually between 6 Months & 3 Years, for loans over £5000 the term can be extended to a maximun of 5 Years..  


How is interest calculated?

Interest in calculated daily on the reducing balance of your loan. Our lowest interest rate is 1% per month equivalent to 12.7% APR, our current maximum interest rate is 3% per month or 42.6% APR.

What are the interest rates?

Loan amount Interest rate
£501 – £1000 APR 26.8%
£1001 – £2000 APR 19.5%
£2001 – £7500 APR 12.7%

How are loans approved?

Loan applications are considered by experienced officers and include an assessment of your ability to make repayments. We will work with you to ensure you can afford your loan.

We may use credit reference and fraud prevention agencies to help us make decisions. A condensed guide to what we do and how both we and credit reference and fraud prevention agencies will use your information is detailed in the leaflet "A condensensed guide to the use of your personal data by Bradford District Credit Union and Credit Reference and Fraud Protection Agencies." 

 Please tell us about any County Court Judgements, Attachments to Earnings, or other payment arrears, together with an explanation of the circumstances.

Can I get a loan for anything I want?

Loans may be approved for ‘any provident or productive purpose.’ This could be car repairs, a new kitchen, a holiday or just paying for Christmas. Try and give us as much information as possible on the application form. We may need a breakdown of costs for certain loans – for example if your loan was for “home improvements” we would want you to include a breakdown of the work planned and individual costs. Loans for annual events such as holidays or Christmas should be repaid over one year.

How do I get a loan?

Once you have joined the Credit Union and have been saving for one month you can apply for a loan. You can now apply online or just fill out a loan application form and send this with all the supporting documents to our main office at City Hall. Please check with the office to find out what you will need.

Who can apply for a loan?

All members may apply for a loan to a maximum of £7,500 – subject to repayment ability. Please be aware that on first time loans the amount offered maybe less. We will work with you to make sure you do not borrow more than you can afford to repay.

How do I make withdrawals?

You can access your savings at any time withdrawing any amount you want, when you want. Please be aware that to remain an active member you are required to have at least £5 in your savings account.

Straight into your Bank Account
We can transfer any amount directly into your bank account via a BACS transfer. Many of our members prefer to set up a BACS facility as this means they can just email us whenever they want to access some of their savings without having to come into either of our offices in Bradford. We will then contact you to confirm the request before sending funds to yoiur Bank.  You can download a form to set up a BACS transfer facility.

Cash Withdrawals
There is a limit of £100 cash withdrawal over the counter at either Office.

We can issue personal cheques for any amount. We also have a special arrangement with Lloyds Bank Hustlergate Branch in  Bradford who will honour cashable cheques up to a value of £500, (Credit Union card & one other form of photo ID required)

How are members funds safeguarded?

The activities of Credit Unions are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Members savings are protected by the Financial Services Compensation Scheme, in the same way savers with banks and building societies are protected.

Bradford District Credit Union is also a member of the Financial Ombudsman Scheme.

How much do I have to save?

Members agree to save a minimum of £13.00 per month or £3.00 per week if you are waged, or £5 per month or £1 per week unwaged.

Does it cost anything to join?

An annual admin fee of £2.00 is charged (at the same time as the dividend is paid) to cover costs such as issuing statements and newsletters.

Why do I need to prove my identity to become a member?

In common with other financial organisations, the Credit Union has to comply with the Criminal Justice Act 1993 and Money Laundering Regulations.

In order to comply we have to ask you to provide evidence of your identity. There are a number of acceptable forms of id. If you don’t have any please contact the office and we will help you find alternative ways of proving who you are.

Bradford District Credit Union Tel: 01274 434100 Fax: 01274 432830 Email: Web: