Revolving Credit is a type of loan facility which gives you a credit limit, allowing you to borrow funds as and when you need them up to that limit. If you found yourself short of cash or facing an unexpected bill, you could withdraw funds from your Revolving Credit to help top up your bank account.
All loans are subject to affordability and our lending criteria.
✓ All applicants must be aged 18 or over and a UK resident (excluding Channel Islands and Isle of Man).
✓ You’re in paid employment of have a regular income.
✓ Only members of the Credit Union can obtain a loan (you can apply for membership within your loan application).
How Revolving Credit Works
You can apply for a credit limit which ranges from £500 – £5,000. We offer eight different credit limits and each limit (detailed below) has a minimum monthly payment. You must commit to paying this amount whether you have borrowed from the facility or not. However, if you have no outstanding balance, this payment will be placed in your Member Account.
In the months you do not use your credit facility your monthly payment will be transferred to your Member Account to increase your savings balance. However, once you have withdrawn from this facility your monthly payment will be used to make repayments towards the outstanding balance and interest (paying an interest rate of 12.68% APR on the balance borrowed).
You are welcome to overpay or repay in full at any point if you wish to repay your balance quicker. There are no fees for doing so and it will save you money in interest. You can also commit to a monthly payment higher than the amounts mentioned on the table below as it could help you repay any debt faster, or top up your savings further.
You can withdraw funds from your Revolving Credit through our app or website, by emailing us, or over the phone – whatever suits you. Your funds will be transferred to your designated bank account via Faster Payment, which can take up to two hours.
Interest rates for Revolving Credit
|Annual Percentage Rate||12.68%|
|Interest charging information||Interest is charged at 1% per month. Interest accrues daily and is charged on a monthly basis.|
Key Product Information
|Repayment information||You will make a minimum monthly payment (detailed below), this is dependent on the agreed credit limit as there are eight different limits available. If you have withdrawn from your Revolving Credit, the monthly payment is used to repay capital and interest and if you have not used your credit facility this is used to increase your savings balance. If you choose to pay more than the monthly minimum this would help to repay your balance more quickly and reduce the amount you pay in interest.
You can repay your loan by payroll deduction or Direct Debit.
First payment due on the next available agreed date after the drawdown of loan.
|Repayment period||There is no maximum repayment term for Revolving Credit, however all accounts are reviewed every 36 months. This is to ensure the product still suits your needs. All borrowing must be repaid by your 70th birthday.|
|Amount of loan available||There are eight different credit limits which you can apply for ranging from £500 – £5,000. You can select the credit limit you require within your loan application.
There is a maximum borrowing limit of up to £35,000 across all our unsecured loan products, however this does not include the Commutation Loan.
|Application/Arrangement Fee||No application or arrangement fees apply.|
|Early settlement||You can repay the loan at any time fully or partially without charge. You can clear the balance at any time and make payments above the monthly minimum.|
|Changing credit Limit||If you wish to increase the credit limit on your Revolving Credit you will need to submit a loan application for this product with the new requested limit. This will undergo a full affordability assessment.
If you wish to decrease your credit limit you can do this easily by contacting the office via phone or email and discussing your request with a Loans Officer.
|Other information||This loan is not a regulated consumer credit product. This does not affect your Financial Ombudsman rights.|
Download key documents here
|Revolving Credit Terms and Conditions|
|General Loan Terms and Conditions|
Credit Limits Available
The following table shows the credit limits which are offered on this product, alongside the minimum payment we expect you to pay each month.
|Limit||Minimum Monthly Payment|
Revolving Credit Example
If you had a limit of £3,000 on your Revolving Credit, you would pay a minimum of £96 every month into the Credit Union alongside your regular savings contribution. During each month where your facility remains untouched, your £96 will be transferred into your Member Account to top up yours savings as there is no cost if funds are not borrowed.
If you then withdrew £2,000 from your Revolving Credit, your £96 would be used to start making repayments towards the amount borrowed and the interest on this. You can repay in full or overpay at any time with no additional fee. You would still have a further £1,000 you could withdraw until you have reached your £3,000 limit.
The facility costs 12.68% APR once you have borrowed funds from it. If you have not used your credit facility, the committed monthly payment will help to increase your savings balance and improve your financial resilience.
Life Protection is included with all our loans and covers you up until your 70th birthday. This does not cost you anything, it is simply another benefit of borrowing from the Credit Union and has been created purely to help our members.
Loans are protected up to a maximum of £40,000 per member. This means your loan would be cleared, ensuring your debt does not remain outstanding, subject to our terms and conditions.
All benefits are paid at the discretion of our Board of Directors. Life Protection is not an insurance policy and is not guaranteed. For more information please click here.
If you have an existing loan with us and want to borrow extra, there are two options available. Click here to see more information.
If you are experiencing financial difficulty, or are struggling to repay your loan with us, please contact us as soon as possible and a member of our team will be able to assist you.