Credit unions are not-for-profit lenders, so their decisions are guided by what is affordable and sustainable for you, not by profit margins. Credit unions look at your income, your outgoings, and your credit history. Their goal is to find out whether a loan is a good fit for you right now.
You’ve been referred to NestEgg because a credit union may be able to help where other lenders couldn’t. If you’re wondering how that decision gets made, or whether it’s worth applying, this article explains exactly what credit unions look at and why.
What do credit unions actually look at?
Two things: whether you can afford to repay, and whether your borrowing history shows you're likely to.
Affordability. They'll look at your income against your regular outgoings — rent or mortgage, bills, existing credit repayments — to check there's enough headroom to repay comfortably.
Some credit unions use Open Banking to see your recent transactions directly. This can work in your favour if your credit file doesn't tell the full story.
Credit history. They're looking for signs of responsible borrowing over time, not a perfect record. A past difficulty that's since been resolved is treated differently from a recent or ongoing pattern of missed payments.
Most credit unions don't rely on your credit score alone. That said, very recent missed payments, defaults, or CCJs are likely to affect the outcome.
Can I be declined even after being referred?
Yes. A referral means a credit union was identified as a possible option. It's not a guarantee. If a loan wouldn't be affordable or sustainable for you right now, they may decline or offer a smaller amount. That's a responsible lending decision, made in your interest as much as theirs.
What to do next
Check your matches - review the credit unions NestEgg has matched you with before applying, to make sure they’re the right fit for you.
Gather your information - having a clear picture of your monthly income and online or mobile banking to hand will make the application smoother.
Apply through the NestEgg platform - your application will be sent to the right credit union for you.
Speak to a person - if you have questions about your specific situation before applying, contact our support team and we’ll help you understand your options.