Money advice

If you need a loan for a variety of reasons, there are services which can help you, even if you suffer from a poor credit history.

Affordable loans

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Getting an affordable loan

If you need a loan – whether because you need help paying for unexpected outgoings, like a washing machine or cooker breakdown, or to cover the cost of school uniform, Christmas, birthdays or holidays, there are services which can help you – even if you have been turned down for credit in the past. However before you apply for a loan here are a few things to ask yourself:

  • Do I need the extra money?
  • Can I really afford the re-payments?
  • What if my circumstances change?

affordable loans

What happens if I can’t make the payments?

Some lenders such as payday loan companies, high street and doorstep lenders often charge high interest rates, have hidden fees, and offer unfavourable payment terms. Instead, here are some affordable money lending options you might want to consider.

  1. Credit Unions

Credit Unions are not-for-profit community organisations run by members, for members. If you live or work in an area where a Credit Union operates you can start saving with them and you may also be eligible to take out an affordable loan.

Some Credit unions offer instant loans without needing to save with them first. Take a look at the example below to see the difference a Credit Union loan could make compared to a doorstep lender;

  Doorstep Lender Credit Union
Amount Borrowed £300 £300
Duration of Loan 52 Weeks 34 Weeks
Weekly Repayment £10.50 £10
Amount Repayable £546 £333.86
Total Interest £246 £33.86

To find information on your local credit union visit www.findyourcreditunion.co.uk

  1. Moneyline

An alternative to using credit unions is Moneyline, another non-for-profit organisation. It offers lending to customers that is fair and flexible. You can also ask Moneyline for free and confidential advice before you borrow money from them. Their repayments are manageable and you can choose to pay back the money weekly or monthly.

Visit Moneyline for more details.

  1. Fair For You

Fair For You is a not-for-profit company, set up for the benefit of its customers. They provide small personal loans to buy new value brand items at affordable prices via their website. They offer good quality items such as kitchen appliances, furniture, beds, prams and electricals if you can’t get regular credit.

Repayments can be made on a weekly, fortnightly or monthly basis with no hidden fees and every item has a 12 month warranty. For more information visit www.fairforyou.org.uk

Avoid Loan Sharks

Don’t borrow money from Loan Sharks.

Loan Sharks are illegal lenders who often charge very high interest rates and sometimes use intimidation and violence to extort money from their victims.

If you are experiencing problems with a loan shark, have been approached by a loan shark or know of loan sharks operating in your area then report them in confidence here.

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