Swap & Drop

Swap & Drop Loan

See if we can save you money on your existing credit repayments

Do you have outstanding credit? Are you paying over the odds for your Christmas spending? Why not Swap & Drop – you can save money by switching to a lower rate and choose one simple, smaller payment instead of budgeting to make numerous monthly payments. You can clear those expensive credit card bills and pay less, so apply online or in branch and let us simplify your finances. You can also choose to save as you borrow, with repayments split between your loan and savings. This means when you have repaid your loan, you will have built up some handy savings too.

  • Borrow up to £20,000
  • Interest starts from 6.5% APR
  • Direct payments to your creditors
  • No hidden fees, charges or repayment penalties
  • Interest charged on the outstanding balance only
  • Free Members' Death Benefit Scheme (terms and conditions apply)
  • 5 Star Fairbanking rating

To apply for this Loan, you'll need to be on the voters roll with your own bank account.

Apply online

  1. Prepare two or three acceptable items of identification (if you're not already a member), proof of your income, and current statements showing the amount(s) owing on the credit you wish to pay off with this loan. You'll need to scan and upload these documents when prompted - we cannot acknowledge your application without them.
  2. Complete the online application form.

Apply in branch

Alternatively, you can complete your application form(s) at a branch. You'll just need to bring two or three acceptable items of identification (if you're not already a member), proof of your income, and current statements showing the amount(s) owing on the credit you wish to pay off with this loan.

All loans provided by Hull & East Yorkshire Credit Union are subject to status and our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for a Swap & Drop Loan?

You must be: a) a member of Hull & East Yorkshire Credit Union, b) aged over 18, c) registered on the voters roll, d) have your own current account.

How can I apply for a Loan?

Complete our online application form, or alternatively, download and print the loan form (and membership form if you aren't already a member. If you’re not already a member, you'll also need to provide at least two acceptable proofs of ID.) We will also need current statements showing the amount(s) owing on the credit you wish to pay off with this loan.

What will you need as a proof of my income?

If you receive:

  • Benefits - Recent bank or Post Office statements, showing at least a months’ worth of income.
  • Wages (employed) - Last three payslips and a recent bank statement showing at least one months’ worth of income.
  • Self-employed income/ Student grant income/ Bursary income – Please speak to us before making an application.

Do I need to be employed to apply for a Loan?

No, as long as you can provide proof of regular income as stated above.

Do you do a credit check?

Yes. Each Loan application is assessed on an individual basis and takes into consideration a variety of factors including the affordability of the Loan, previous savings and borrowing patterns with the Credit Union, credit history and so on. Information on how we use Credit Reference and Fraud Prevention Agencies to check your credit history is supplied separately on request and on our website.

Do I have to save with the Credit Union to get a Loan?

We may be able to offer you a better loan rate if you agree to “pledge” your savings with us (although this is not a condition when we offer you a Loan). If you do agree to “pledge”, we will require you to save at least £10 per month (£2.50 per week) alongside your Loan payment, into your Membership Account. Your Membership Account will be “pledged” to the Loan, which means that you cannot withdraw from it until your outstanding Loan is less than the amount in the account (the difference may then be drawn). You can also have additional and separate Instant Access Accounts which you may draw from at any time.

How long does it take to make a decision?

Once your application is complete with all supporting documents, we aim to make a decision within 5 working days. It may take a little longer at busy times such as Christmas and holiday seasons.

How much can I borrow?

You can apply for a Loan from £100 to £20,000.

When can I apply for another Credit Union Loan?

For loans up to £1,000, you can reapply once you have repaid half of your existing Loan by regular instalments. For larger loans, at least one-third of the existing Loan should be repaid.

Do you offer joint Loan accounts?

Not currently.

How do I repay my Loan?

All Loans are to be repaid either through your own bank account by bank standing order or direct debit, or by payroll deduction.

How often must I make repayments?

According to the frequency of when you receive your income. Repayments should be made regularly (weekly, fortnightly, 4-weekly or monthly).

How do I collect my Loan money?

Your Loan will be paid directly to your lenders.

What interest do I pay?

Credit Union Loan rates start at 6.5% APR and are capped at 42.6% APR.

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest.

What term do I pay my Loan over?

Up to ten years.

Are there any penalties or hidden charges for clearing my Loan off early?

No.

How often will I get a statement?

Statements are provided upon request, or you can check your balance by registering with us on our website.

What if I cannot afford my repayments?

Get in touch with our Credit Control department without delay to discuss a reduced payment plan. Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

What about insurance?

We don’t offer insurance as such, but your Loan may be covered by our free Members’ Death Benefit Scheme

Updated 15.5.17

All loans provided by HEYCU are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.

When taking up a Swap & Drop Loan with Hull & East Yorkshire Credit Union, the Borrower will sign a Loan Agreement which sets out the following terms and conditions:

1) The Borrower will repay the Loan that the Lender has advanced them, plus interest.

2) The Borrower will continue to make repayments until the Loan and any interest on the Loan due to the Lender have been repaid in full.

3) The Borrower has the right to settle the Loan early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the Agreement.

4) The Borrower agrees to inform the Lender immediately of any change to their financial circumstances which may affect their ability to repay the Loan or of any change in their address.

5) If the Borrower fails to pay any amount due to the Lender under the Loan Agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all of the balance of the Loan outstanding, together with any unpaid interest.

6) The Borrower agrees to be liable for all costs, charges or expenses of whatever nature of recovering any sums due under the Loan Agreement.

7) The Borrower agrees that if they default on their repayments, information about their Loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.

8) The Borrower assigns to the Lender all paid shares held now or in the future in the Credit Union, as security for payment of the Loan and for interest or expenses which may be due and authorises the Lender to apply any or all such shares towards payment of the Loan, interest or expenses which are owed.

9) We, as the Lender, may use credit reference and fraud prevention agencies to help us make decisions. If you would like to read the full details of how your data may be used please see our Privacy Policy


We can offer some of our members a better Loan rate if they agree to ‘pledge’ their savings until their Loan is repaid. The below terms and conditions will apply in those circumstances.

When taking up a Swap & Drop Loan (with pledged savings) with Hull & East Yorkshire Credit Union, the Borrower will sign a Loan Agreement which sets out the following terms and conditions:

1) The Borrower will repay the Loan that the Lender has advanced them, plus interest.

2) The Borrower will continue to make repayments until the Loan and any interest on the Loan due to the Lender have been repaid in full.

3) The Borrower has the right to settle the Loan early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the Agreement.

4) The Borrower agrees to inform the Lender immediately of any change to their financial circumstances which may affect their ability to repay the Loan or of any change in their address.

5) If the Borrower fails to pay any amount due to the Lender under the Loan Agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all of the balance of the Loan outstanding, together with any unpaid interest.

6) The Borrower agrees to be liable for all costs, charges or expenses of whatever nature of recovering any sums due under the Loan Agreement.

7) The Borrower agrees that if they default on their repayments, information about their Loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.

8) The Borrower assigns to the Lender all paid shares held now or in the future in the Credit Union, as security for payment of the Loan and for interest or expenses which may be due and authorises the Lender to apply any or all such shares towards payment of the Loan, interest or expenses which are owed.

9) We, as the Lender, may use credit reference and fraud prevention agencies to help us make decisions. If you would like to read the full details of how your data may be used please see our Privacy Policy

10) The Borrower agrees that the balance held in their Membership Account, including any deposits made after the date of this agreement, up to the value of the outstanding Loan will be attached to this Loan and may not be withdrawn. Withdrawals of any balances in excess of the outstanding Loan (less £1), or held in other savings accounts, may be made.


Glossary

Borrower - The member named on the Loan Agreement

Lender - Hull & East Yorkshire Credit Union

Loan - the sum that the Lender has advanced to the Borrower, plus interest

Shares - The amount in your savings account(s) with Hull & East Yorkshire Credit Union.