A bridging loan is a short-term loan to support you while you make the transition to a credit union. It provides temporary stability and peace of mind while you build your personal balance sheet.
The benefits of getting into a credit union are tremendous; they offer competitive loans, flexible terms, and an overall health check on your finances. In many cases, bridging loans are available at no cost. The credit union will pay all costs that would normally be levied by a bank or other finance company.
Bridging loans are the best option for those who are:
- Considering a change to their banking habits.
- Wanting to save money rapidly. Or, if there is little or no ready savings in the bank account, to use savings that may be available from another source (such as an insurance policy, or your personal finances). However, it is not always easy to obtain additional cash quickly.
- You are close to making a lump sum payment, or have been told by a bank that you need to make larger payments in the near future.
- You need to quickly put together savings for emergency expenses. Or, you have an emergency budget shortfall and need to bridge this gap.
It is best to discuss your situation with your credit union loan adviser at the early stages of the loan, if given the opportunity, before discussing any other options with another lender.
The good news is that there are many financial institutions that offer bridging loans at no cost. You do not have to pay any fees or charges to bring in the bridging loan. This means that you can free up the cash in your bank account quickly, without having the stress of large payments while waiting for a longer-term loan to come through. In some cases, a credit union will even make available funds for you within 24 hours, so you don’t have time to apply elsewhere.
The largest housing association (Housing Benefit) in the United Kingdom, the Federation of Housing Associations, have produced a promotional video about bridging loans, featuring Stan Davis who has been working with thousands of Housing Benefit tenants to help them get into credit unions.
Stan is a full-time credit union consultant and was officially appointed by his local Credit Union Movement in 2009 to monitor Members’ needs in this regard. In addition, Stan is a Fellow of the Chartered Institution of Credit Unions (CICU) and serves on the Board of this prestigious CICU-nominated body. Stan has authored several books and articles and been interviewed on numerous radio and television programmes. He regularly speaks at credit union conferences in the UK and overseas.
Here is Stan’s video bridging loan promo, in case you are curious:
The Video titled “Bridging Loans are free at some credit unions”, from the Federation of Housing Associations.
Stan Davis, Author of the book Bridging Your Gap: How to get into a credit union without paying fees or charges.
Stan Davis is a full-time credit union consultant and was officially appointed by his local Credit Union Movement in 2009 to monitor Members’ needs in this regard. In addition, Stan is a Fellow of the Chartered Institution of Credit Unions (CICU) and serves on the Board of this prestigious CICU-nominated body. Stan has authored several books and been interviewed on numerous radio and television programmes. He regularly speaks at credit union conferences in the UK and overseas. Stanley Davis has been working with thousands of Housing Benefit tenants to help them get into credit unions.
