Your questions answered
A credit union is a community savings and loans provider that exists to provide financial services to a common group of members.
Credit unions are owned and controlled by their members and offer a real alternative in the community for safe savings and affordable loans.
Members of the credit union pool their savings to provide the funds from which loans are made. The interest on loans pays for the running of the credit union and members get a share of the profit known as a dividend.
They are committed to doing business in a way that contributes to the community and meets the needs of members. Money is kept in the community by the savings on loan interest by borrowing from the credit union and because profits are shared amongst the people who use the credit union – the members.
Hoot, like all credit unions, is a member co-operative. This means that as well as getting the benefit of our savings and loan products, you are a member shareholder and get a share of the profit each year.
Anyone who meets the criteria for membership can join.
To join Hoot Credit Union you must be 16 years of age or older and live, work or study in the BL0-BL9, M25-M29, M38, M45 and M46 Postcode areas or be employed by a partner employer. For more details click here.
Firstly check you are eligible for membership
If you meet the criteria click here to apply
Alternatively, you can pop into our Victoria Square branch and complete an application form. Bring two forms of identification with you.
A list of suitable identification documents can be found here.
You can apply for a loan on this site without having to join first.
If you are successful you will have to open a membership account and save whilst you repay your loan.
This will all be arranged when you are signing your loan agreement.
There may be another credit union near to you that you can join. To check go to www.findyourcreditunion.co.uk.
There are many reasons why our loans are better for you than any other loan.
For example:
This all means that you will only get affordable loans from us.
You can apply for a loan on this site by selecting the button Check Eligibility and Apply. Make sure you are eligible then click through to the application form.
If you want to apply on a paper form you can apply in branch or by asking us to send you a form.
If you apply online we may ask you to forward a copy of bank statements. If you apply on paper you should attach your last 2 month's bank statements to your application.
Completing your loan application form
Here at Hoot we treat all of our loan applicants as individuals and take your particular circumstances into account when we look at your application.
Hoot makes its loan decisions carefully and in the interest of all credit union members. Be honest about the information we ask for, especially about your income and expenditure and details of any other loans, catalogues or credit you have with other companies. A credit check is done using the information you give to verify the information you put on the form.
Having a poor credit rating or other debt will not necessarily prevent you from getting a loan with us but if you leave out important information about your household income and expenses or your existing debt it may affect the decision we make.
Firstly, we will ask you about your personal details including where you have lived in the past 3 years. This is so we can verify that you are who you say you are.
The next part of the application is about your income and expenditure. Make sure you include everything that your household spends. If you have included a spouse or partner’s income, or if they pay some of the bills, you need to give their details too. We need this information to be sure that you can afford the loan repayments. We may ask you for bank statements to verify what you say.
The next part will ask you about any other credit you have and whether you have managed to keep up with payments. Don’t leave anything out, a credit check will show us what debt you have and how well you manage it. Credit could be loans, hire purchase, credit cards, catalogues, store cards, car payments or payments to places like Brighthouse. Having other debt will not necessarily go against you. I fact if you have a manageable level of debt that you are managing to pay well, it may go in your favour by showing us that you can manage your loan.
The application then moves onto how much you want to borrow and what for. We will ask you how often you want to pay and what payment date suits you.
Finally you must read the declaration carefully and then indicate that you are happy for us to look at your loan application.
Do you do a credit check?
We will usually do a credit check to help us decide if you are not overindebted or are struggling to pay your existing credit. Click here for more information about how your information is used when you apply for the loan.
When will I get a decision?
We aim to get a decision back to you as soon as we can, usually within 4 working days. This may take longer at busy times. If you are successful we will arrange for you to sign the loan agreement and make repayments.
If you need help completing your loan application, please contact us.
Hoot LoansYes, we carry out a credit check on all loan applications. This is to help ensure we are lending sensibly and protecting the interests of all members who save with us.
The credit check will in part be used to verify the information that you provide when you apply for your loan. It is therefore vital that you accurately enter your information correctly in your application, including any other outstanding credit you may have.
Click here for information on how we use credit reference agencies.
We do not front load interest at the start of your loan. Instead, interest on Hoot Credit Union loans is calculated on a daily reducing balance basis. As a result, with each repayment you make, the interest which has accrued since your last repayment is cleared and your loan balance reduces. Interest will then be calculated on the reduced balance. As your loan progresses, your outstanding loan balance will continue to reduce and you will therefore pay less interest. We believe this to be the fairest way to charge interest.
You can repay your loan in several ways:
By standing order
Cash repayment in our Victoria Square branch
At your local Post Office or Paypoint
By phone using your debit card
The loan officer will discuss your options and arrangements for payment when you are signing your loan agreement.
If you think a payment is going to be late, please contact us and let us know. You will not be charged anything for the late payment but we may need to look at your repayment arrangements to see if they are suitable.
If you have extra money you can pay this into your savings account at any time. When the balance of your savings account is enough to pay off the balance of your loan, you can do this.
If you wish to repay your total outstanding loan early you can do so in one payment. There are no early repayment charges for this.
Hoot Credit Union is a financial community co-operative that promotes savings as well as loans.
We expect all of our members to save as much as they can afford, even if they are repaying a loan. As a rule of thumb we would ask you to save 10% of your regular repayment up to at least 10% of your outstanding loan balance.
We then ask that you keep 10% of your outstanding loan balance in your savings as your commitment to saving. If you can't afford that level you can talk to us about what you can afford.
For example:
If you borrowed £200 over 52 weeks you would be asked to pay £6 per week. £4.60 to repay your loan and £1.40 in savings.
At the end of the year you will have repaid your loan and have £72.80 in savings!
Our loan officer will explain this to you when you are signing your loan agreement.
If you are experiencing hardship and need access to some of your savings, please ask a member of staff.
We know that from time to time people may struggle with money because of the demands of everyday life. Loss of your job, unexpected expenses or other circumstances can sometimes overwhelm you and cause worry and stress about how you can keep up with payments. Sometimes we know that it is a short term problem and you just need a little time to get back on your feet.
Talk to us
Credit unions value their members and are here to help so we dislike taking any kind of action with regard to people who cannot pay their loan. The money you have borrowed comes from the savings pot of other members. We therefore have a responsibility to help you to pay us back. You should remember that, if you do not repay your loan, your credit rating will be affected and you will find it harder to get credit. Not only does it add more costs to your debt but can affect you for years into the future when you apply for credit, mobile phone contracts, car finance, opening some bank accounts or even passing pre-tenancy checks when you want to move house.
We may be able to help
It is important that you contact us straight away if you are struggling with your loan repayment. It is better to talk to us as soon as you can so don't be embarrassed about contacting us. We will be happy that you have contacted us to put things right
If you are having difficulty with your repayments, please contact us.
Make sure you compare like with like
APR% will help you compare loans but you should remember to compare only loans that you would be eligible to get. For example, if you have a poor credit history, comparing with a bank loan with a low APR% that you would need an excellent credit rating for, wouldn’t give you a true picture of what your options are.
You may see lower APRs advertised but we recommend that you check whether the advertised rate applies to the loan amount you actually need. Often, the lowest advertised rates from major financial institutions only apply to the higher value loans and are quoted as a “representative” rate, which means that may not be the rate that you are offered. Many of our customers have reported to us that bank's offered them a loan at a much higher rate than advertised. With us, what you see is what you get.
You might find that they won’t even provide the loan amount that you need at any rate.
Also, check what you will actually pay monthly and what is included. We charge interest on the reducing balance only, whereas they might apply interest up-front on the total loan.
In addition, you build up savings so that you can pay off your loan early or, if your loan runs its full term, you have a savings balance to keep.
As we are a regulated credit union, you know that you are not paying for outside shareholders or profits. Surpluses, after operating costs and allocation to reserves, are used to pay dividends to savers.
You can save as little or as much as you like, it's up to you.
We expect all of our members to save, even when repaying a loan. This way you begin to get into the savings habit and build up a nest egg to use as you want.
It's entirely up to you.
Within your account you can have up to four savings pots:
Savings 1 is your general savings pot - use this one if you want to withdraw savings regularly
Savings 2 is usually used to save up to 10% of your loan balance - something you agree to do when you get a loan from us.
The Christmas pot is just that, save as much as you can afford in the year for Christmas
The Nest Egg pot is for you to save for whatever you want - wedding, holiday, car or just a rainy day fund.
You can nominate how you want your deposits to be split.
Speak to your staff for more details.
Yes, any relative living in your household can join the credit union and save.
We have Young Saver accounts for children and young people up to the age of 16.
You can deposit cash at our Victoria Square branch or set up a standing order from your bank account.
Deposits are also accepted by debit card over the phone but maximum limits apply.
If you are employed by one of our payroll partners you can save via payroll deduction. Click here for more details
You can withdraw your savings in three ways:
In cash at our Victoria Square branch (maximum of £250)
By bank transfer by registering your bank details with us in advance
Onto your Engage Prepaid card.
Yes, in fact we expect you to continue saving at a level you can afford.
We would normally expect savings of 10% of your loan repayment but you can save more.
Hoot savings accounts do not earn interest but as a co-operative you are a shareholder and will get a share of the profit (a dividend) in proportion to your savings each year (subject to credit union performance).
Your savings are automatically insured free of charge, so that if you die your savings may be doubled and paid out to your nominated beneficiary.
As loans also include free life insurance. In the event of your death your loan balance is cleared and your savings doubled to help support those you leave behind.
As with most insurance some exemptions apply; for example you may not be covered if you have a pre-existing medical condition or are over a maximum age. Contact us for latest up to date details.
You can check your balance easily by texting HOOT to 80818. Please ensure that you have registered your current mobile phone number with us first.
If you have not already done so, you can register on the members' area where you can access your account 24/7 keeping you right up to date.
To register, click here
You can call us on 01204 365024 to check your balance and ask any other queries.
For our opening hours and contact details, click here
You may contact us about your account by telephone by calling us on 01204 365024 during opening hours
We will ask you some security questions. Some transactions, such as loan agreements, will always need to have your signature before they can be processed. We cannot take withdrawal instructions over the telephone.
We can help you with account balances, bank transfer requests, debit card payments or any other queries you may have.
Please note that we cannot take new bank account details for withdrawals over the telephone.
You can deposit cash at our Victoria Square branch or set up a standing order from your bank account.
Deposits are also accepted by debit card over the phone but maximum limits apply.
If you are employed by one of our payroll partners you can save via payroll deduction. Click here for more details
You can withdraw your savings in three ways:
In cash at our Victoria Square branch (maximum of £250)
By bank transfer by registering your bank details with us in advance
Onto your Engage Prepaid card.
If you think your balance is wrong, call us on 01204 365024 or email enquiries@wisewithmoney.org.uk.
A credit union is a community savings and loans provider that exists to provide financial services to a common group of members.
Credit unions are owned and controlled by their members and offer a real alternative in the community for safe savings and affordable loans.
Members of the credit union pool their savings to provide the funds from which loans are made. The interest on loans pays for the running of the credit union and members get a share of the profit known as a dividend.
They are committed to doing business in a way that contributes to the community and meets the needs of members. Money is kept in the community by the savings on loan interest by borrowing from the credit union and because profits are shared amongst the people who use the credit union – the members.
A credit union is a community of its members, whose aims are to promote their financial wellbeing through savings, affordable and appropriate lending opportunities, and through the promotion of greater financial awareness.
Banks have a duty to generate profit for shareholders. In a credit union members are the only shareholders and are the only ones who benefit from its success by a share of the profit. There are no fat-cat city shareholders to satisfy so the credit union is focused on the needs of members, not external shareholders.
As community co-operatives credit unions can offer financial services to a broad section of the community and can become a lifeline for people who may otherwise have to resort to payday loans or doorstep lending which often carry incredibly high interest rates.
The key objects of a credit union are:
Responsible lending
Hoot is proud to be among a small number of financial institutions that have achieved 5 stars from the Fairbanking Foundation for its loans. The mark has been awarded for the fair and responsible way that Hoot treats its members when they apply for and manage their loans.
Loans from £200 to £15,000 are available to members at an interest rate appropriate for the member’s affordability, income and credit rating.
A community benefit business
We estimate that we save our members up to £450,000 per year in loan interest, had they taken comparable loans from other lenders. This community dividend enables our members to support each other whilst at the same time getting a good deal.
As a community-oriented business Hoot has a very strong relationship with businesses, community groups and local government organisations and collaborates on a number of projects aimed at promoting fair finance and money management skills.
Our vision is to unite our community for a fairer financial future
Mission
Hoot’s mission commits to serving members by:
• Providing you with a range of affordable loans and accessible savings
• Helping you to be wise with your money
• Providing information and services that help you to manage your money better
• Valuing and rewarding you by sharing our profits
• Listening to you – online, mobile or in person, treating you as an individual
• Considering your interests in every decision we make
Values
As a co-operative financial enterprise, Hoot Credit Union strives to be:
• Ethical
• Professional
• Honest
• Fair
• Innovative
• Inclusive
Our Objects
The promotion of thrift among its members of the society by the accumulation of their savings.
The creation of sources of credit for the benefit of its
Members at a fair and reasonable rate of interest.
The use and control of members’ savings for their mutual benefit.
The training and education of members in the wise use of money and in the management of their financial affairs.
Our Social Goals
To contribute towards the alleviation of poverty within the community.
To contribute towards the economic regeneration of the community.
Yes. Member savings are protected by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme. Find out more about the Financial Services Compensation Scheme.
We are also authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This means that we meet strict conditions for trading, we are required to submit information on our financial performance to the regulators every three months.
Hoot has to follow a strict regulatory and compliance regime that ensures that everything is done as it should be and for the benefit of members.
Directors of the Hoot Board are elected by members at the AGM to represent their interests and to oversee the strategic direction of the credit union.
The Board meets monthly to discuss and make decisions on matters of strategy, business development and regulatory compliance, and also determines policy and has maintained an ongoing schedule of policy review.
During the year Directors meet with the Chief Executive Officer to review, develop and determine the ongoing strategic and business plan. The Chief Executive is employed by the Board to deliver the business plan and to run the credit union on a day to day basis.
Credit unions form part of the wider international co-operative movement and can be found in 103 countries, with over 208 million members. In the UK there are 362 credit unions with 1,197,000 members. Further information about the wider movement can be found here.
We are a member of ABCUL
Your money is protected up to £85,000
Authorised and Regulated by
