Friends, family & credit unions

Lesson 10 of 12 in our free Borrowing guide: a 5-minute money game with the key points below.

Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Borrowing is free for everyone.

Questions you'll answer

What makes a credit union different from a high-street lender?

Agreeing a repayment date in a message you both keep → Green flag. Clear and kind. Nobody's guessing.
'I'll pay you back when I'm rich' → The ick. That's not a date. That's a vibe.
Only lending what you could afford to never see again → Green flag. Nana's rule: it protects both your money and the friendship.
Borrowing from one mate to pay back another → The ick. Debt musical chairs. Someone ends up without a seat.
Fact: “Credit unions are usually linked to where you live, work or study.” — Membership is based on a 'common bond' like an area or employer.
Myth: “Lending money to friends never affects the friendship.” — Money stress is a classic friendship-ender. Clear terms help a lot.
Fact: “Money deposited in a UK credit union can be protected by the FSCS.” — Authorised UK credit unions are covered by the Financial Services Compensation Scheme.