Review of London Plus Credit Union: Beneficial for You?

London Plus Credit Union (London Plus CU) is a not-for-profit credit union offering savings accounts, debit cards and loans with fair rates to its members. Those who live, work or worship in certain parts of London are eligible to join to take advantage of the benefits of membership.

• Review of London Plus Credit Union
  • Who Can Join London Plus CU?
  • Benefits of joining London Plus CU
  • Products Offered by London Plus CU

Our Thoughts: London Plus Credit Union Review

As a not-for-profit credit union, London Plus can provide financial benefits to their members. For example, those with savings can receive a dividend each year (based on the organisation's cash surplus) and access loans at a fair and reasonable interest rate. You become a shareholder when you join, which means you essentially own part of the credit union. In addition, loans have no arrangement fees and no penalty fee should you be able to pay back early.

As a credit union, London Plus encourages members to save money. A credit union doesn't have any money to lend out unless members save money, so savings are crucial not just for members' financial health but for the proper functioning of the credit union. A few ways in which London Plus encourages savings are:

Debit Cards: You aren't required to have a debit card with your account, but you can apply for one. Be aware that using a debit card linked to your London Plus CU account isn't free. Each debit card withdrawal in the UK costs £0.75, plus you need to pay a £2 usage fee every month you hold the card and a one-time £10 new MasterCard fee.

Does it Cost Money to Join London Plus CU? There is an £8 joining fee, £3 of which is a membership fee and £5 of which is credited to your savings account. This £5 must stay in the account whilst you're a member in order to keep your membership active. You can get it back if you ever close your account.

How Long Does it Take to Become a Member? It may take some time for your membership to be reviewed, especially at certain times of the year. For instance, when we checked in December the queue was around 8 days long. That is, applications were currently being reviewed which had been submitted 8 days prior. Actually getting an answer (e.g., approved) could take a few days longer.

Who Can Join London Plus Credit Union?

Credit unions are meant to serve the communities around them. The London Plus Credit Union is located on North End Road in Fulham, London, so those who live, work or worship nearby are eligible to join. Full details below.

London Plus CU Payroll Plus

Payroll Plus is a benefit offered to employees of organisations that have partnered with London Plus CU. Eligible employees can access loans with beneficial rates (e.g., the Payroll Plus loan APR is 12.7%, lower than the Premium loan's 18.9% APR). Plus, with Payroll Plus members are encouraged to save—decide how much you want to save each month and this amount is deducted from your salary via the employers payroll and transferred into your Payroll Plus savings account. This money can later be accessed by emailing London Plus CU using your work email address, at which point they'll transfer the money back to your main London Plus CU savings account.

Benefits of Using London Plus Credit Union

As a not-for-profit entity, members may benefit from a few perks not found from a for-profit financial institution. For example, the 42.9% interest rate on Instant loans is significantly lower than the typical payday loan interest rate, which can reach a whopping 1,500%.

Products Offered by London Plus Credit Union

The primary products offered by LMCU are current accounts, savings accounts and loans. Below we give an overview of each product, including details such as eligibility requirements and interest rates.

London Plus Credit Union Loans

London Plus CU offers a wide selection of loans to serve a variety of needs, with loans available from £50 up to £15,000. Rates are fair and may be cheaper than you'd find elsewhere (e.g., compared to a traditional payday loan).

To encourage savings, many London Plus CU's loans require you to set money aside into your savings account as you pay back the loan. That way, when your loan is paid back, you also have a small pot of other money saved up. Some loans are eligible for a quick decision—for this you'll need your last two bank statements and your last payslip or benefit letter if you're not working.

London Plus CU Savings

All members get a Membership Account, which is a savings account that pays a dividend based on LMCU's earnings and the amount of money in your account. LMCU also offers Holiday and Christmas savings accounts to help members save up money for these costly events by contributing small amounts on a regular basis throughout the year to later use for a holiday or Christmas spending. Christmas and Holiday savings accounts do not pay a dividend, unfortunately.

London Plus CU Debit Cards

Opening a debit card linked to your London Plus CU account is optional, but can be useful for paying for goods and services in-store or online, making cash withdrawals at ATMs and immediate access to approved loans. The card costs £10 initially, plus you'll pay usage charges per month and per use, as shown in the following table:

For more information on any of these products, see the London Plus CU's website. To see how the London Plus Credit Union compares to others, you can take a look through our review of the London Mutual Credit Union or London Plus Credit Union.