If you have never heard of a Credit Union or simply don’t understand what they are now is the time to get your facts straight, the essence of a Credit Union is Community Lending.
They fill an ever expanding gap in the loans market, where people are struggling to find competitive interest rates and achievable credit ratings to secure a loan that many of the banks cannot or will not offer.
They prevent the need to use a payday loan or doorstep lending, which on the surface offer instant cash but on closer inspection should be steered well clear of.
An Example of a PayDay loan terms
"Representative 1734% APR. Representative example: Borrow £50 for 30 days. The total charge for credit is £14.75Interest is fixed at a rate of £14.75 per £50 loan (359% per annum). The Total Repayable is £64.75."
An Example of a Credit Union Loan Terms
"Most loans are made at a flat rate of either 1% or 2% per month on the reducing balance of the loan, which represents an APR (Annual Percentage Rate) of just 12.68% or 26.8%"