Affordable Credit
Of course, we all need to borrow money from time to time when it’s appropriate. But these days there is no need to pay through the nose.
It may be that you don’t have a bank account, have a bad credit history (or no credit history at all) and feel that you won’t be able to get the normal low cost credit available from banks or building societies.
You may think that the only option open to you is to get a loan from doorstep lenders or buy goods from shops that don’t do credit checks. Or worse still you might turn to illegal moneylenders for credit. All of these organisations charge extremely high rates of interest (usually in excess of 200% APR for doorstep lenders, and often 1000% or more for illegal money lenders). This means it could end up costing you many times the original amount to repay a loan.
But there may be organisations in your area, such as credit unions or money lines, who can lend you the money you need for much less. The table below shows the savings you could make:
| Lender |
Amount of Loan |
Typical APR |
Term of loan (weeks) |
Weekly repayment |
Total repayable |
Total interest |
| Illegal lender |
£300 |
1000% |
52 |
£55.50 |
£3000.32 |
£2700.32 |
| High cost credit provider |
£300 |
246.50% |
52 |
£17 |
£884 |
£495 |
| Doorstep Lender |
£300 |
177% |
55 |
£9 |
£495 |
£195 |
| Credit union |
£300 |
26.8% |
52 |
£6.55 |
£340.44 |
£40.44 |
Click here to find a Credit Union near you or by looking in the Yellow Pages under ‘Credit Unions’.
