My friend recommended credit union to me, It’s a really convenient way to borrow, especially at Christmas. I pay with my child benefit so don’t have to worry about missing a payment. Norma, Chelmsley Wood

Yes, you can borrow using your Child Benefit! 

Don’t live in Birmingham or Solihull? Find a credit union near you www.findyourcreditunion.co.uk 

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We arrange with you for your Child Benefit to be paid in to your credit union account, £21.05 weekly for your first child plus £13.93 for each subsequent child.

Your weekly or 4-weekly benefit payment is split three ways:

  1. loan repayment
  2. £3 per week attached savings
  3. You can choose how much to save in your credit union savings or Christmas Club. If you prefer, we can pay the balance back to your bank account or Engage debitcard Account. The choice is yours!

£3 doesn’t sound much, but it’s amazing how quickly your savings can grow

  1 year 2 years 3 years
£3/week £156 £312 £468

And your savings earn a dividend – 1% for the last three years. 

Loans are subject to affordability check and a free money health check. New members are likely to be offered a FirstChoice loan. Our loans are by far the most competitive in the market, see how a £400 loan compares with other lenders:


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We recommend that you try our Budget Planner to ensure you can afford repayments of your Child Benefit Loan.

You will build up a history of saving and borrowing with Advance Credit Union as you repay your Loan. If you keep up with your payments you will qualify for an EasyPlan loan at a lower interest rate and lower weekly repayments then our FlexiPlan revolving credit.


  • Fixed interest rate during the term of your loan
  • The quicker you repay, the less interest you pay.
  • Free money health check; we will let you know if we spot any concerns about your finances
  • Save-as-you-borrow £3 per week added to your savings
  • Free Life Insurance (conditions apply)
  • Borrow up to £1,000 (conditions apply)
  • Loan amount paid direct into your bank account or into an Engage Account
  • Boost your credit history

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Apply for a loan

You will also need to provide your proof of income and identification:

  1. Pay slips/ proof of benefit for the last three months (or equivalent)
  2. Bank Statements for the last three months
  3. ID – 2 forms of Identification. See our Join page for the list of Suggested forms of Acceptable ID
  4. Information on all existing loans, credit cards and other debts
  5. Proof of your National Insurance Number
  6. Proof of any other income (e.g. CSA payments)

We will send you an email or text message when your loan decision is made, usually within 3 days, but it can take up to 7 days for a loan decision depending upon demand.

If you provide your email address we will email the loan agreement for you to sign, plus your repayment schedule.

Please also be sure to read our Loan Guidelines

Note that loan repayments are still due if you no longer receive child benefit during the term of the loan. Failure to make scheduled loan repayments will lead to arrears action. Non-payment can affect your credit history and your ability to borrow from other providers.