Credit Rebuild Loan

Credit Rebuild Loan

A loan to help members rebuild their credit history

Helping our members rebuild their credit rating

A Credit Rebuild Loan aims to help members start to rebuild their credit history. It is only available to members who have not borrowed from the NHS Credit Union before.

  • Borrow a fixed amount of £500
  • Interest rate of 2% per month (24% pa)
  • Loan term of 12 months (can be extended to 24 months)
  • Repayment by payroll deduction or direct debit

Product Features

  • Assists members with poor credit history to help rebuild their credit rating
  • Assists members in accessing future mainline credit union borrowing
  • Assists the member in achieving a more positive credit score/report
  • Assists members where only high cost options are available to them
  • Supports members in improving their approach to borrowing and managing finances


  • To be eligible to apply for a Credit Rebuild Loan, you must have savings in your share account equal to at least the cost of one monthly loan repayment PLUS £5 (which is the minimum shareholding). 
  • Members must have contributed at least one monthly or four weekly payments to their savings account before they can apply.
  • Members must not be Bankrupt, entered into a Trust Deed, DAS, IVA or DRO, and must meet the eligibility criteria to repay the loan.

General Information

Credit Rebuild Loans are designed to help members rebuild their credit rating. They are particularly suitable for those members who find it difficult to obtain loans because of their credit history, but could afford the repayments necessary for the credit rebuild loan.

The product can help members access future mainline credit borrowing; help them achieve a more positive credit score - and help members whose only other finance option might be high-cost "pay-day" loans.

Another intention of the credit rebuild product is to support members in improving their approach to borrowing and managing finances, and encourage them to make arrangements to pay off debts.

Product Terms

Applicants for a credit rebuild loan:

  • Must be an active member who has never borrowed from the credit union
  • Must be a UK resident
  • Must be over 18 years old 
  • Must be contributing through payroll deductions or direct debit
  • Must not be Bankrupt, entered into a Trust Deed, DAS, IVA or DRO
  • Must agree to savings being pledged as security for the loan
  • Must agree to pay an interest rate of 2% per month = 24% annually
  • Must agree to repay loan over 12 month period (up to 24 months if income and expenditure dictates).
  • Must agree to make arrangements with existing creditors
  • Must agree to interest being charged daily and being added to the loan account monthly.
  • Must agree to interest being charged for the complete duration of the loan, including the period between the start of the loan and the first monthly repayment
  • Must contribute at least £10 towards savings each month in addition to monthly loan repayment
  • Must satisfy an affordability and credit check being carried out

Early repayment is permitted without penalty

Overpayments accepted without penalty

Repayment Information

Loan Repayments are taken from your savings account on the 1st of each calendar month. Your first loan repayment will be deducted on the 1st of the month following the loan completion date. Loan repayments can't be deferred, and repayment holidays are not permitted.

Loan Protection

Loan Protection is a free safeguard offered by the NHS Credit Union. Your loved ones can be secure in the knowledge that your NHS Credit Union debt (up to a maximum of £15,000) can be paid off, giving them peace of mind at a difficult and uncertain time.

Loan Protection is provided as a member benefit by the NHS Credit Union. It is free to every member, subject to the terms and conditions. However, it should be remembered that the terms of this free member benefit may change from time to time. The applicable rates / amounts covered are those prevalent at the date of death.

NB: Individual members do NOT have an insurance policy – they share in a free benefit offered by the credit union.