There’s no getting away from the fact that people sometimes need to borrow money in a hurry. We don’t all have easy access to substantial savings, and many bank accounts don’t come with a built-in overdraft. Bearing that in mind, when an emergency occurs, or even an extra expense such as paying for a car to be fixed or a bolier breaking, people can’t be blamed for turning to payday loans for help.
The issue with most payday loans, of course, is the high-interest rates they charge. Although the actual rates may vary, they are generally much higher than loans available elsewhere and are generally provided to people who might find it hard to get credit through other means. That’s why we always advise our account holders to take out a loan with us instead, as the loans we provide are superior to payday loans in several different ways.
The first advantage a credit union loan offers over payday loans is based on those interest rates. Because we run as a, not for profit organisation we don’t have to charge excessive rates in order to bring more money in. Our interest rates are set as low as they can possibly be, and are completely transparent. That means, in contrast with some payday loans, that what you see is exactly what you get. We don’t offer special rates to a few borrowers, and there are no hidden charges or fees in the small print. Once we’ve discussed the amount we think you can afford to borrow, and the details of the repayment plan, you’ll know exactly where you stand.
The second notable difference, when compared to payday loans, is the ‘Save as you Borrow’ method unique to community bank. As part of your repayment, a small amount is taken out to build up savings, which will help to protect borrowers from expected expenses that may arise in the future by having a safety net in savings.
We are confident that loan applicants will be happy with the speed it takes from application to decision when compared to payday loans. Once you’ve provided all the information we ask for we’ll let you know if the loan has been approved within two days, and often by the very next day. What’s more, as soon as we say yes the money will be transferred to your account, leaving you free to spend it however you like.
Important though the money we save you is, there’s one more advantage we offer over payday loans, which is based on the way we deal with our account holders. When you borrow money from us you’ll be treated as a human being, dealing with our staff on a one to one, person to person basis, rather than having to fill in online application forms or speak to some remote call centre. We’ll make sure don’t borrow any more than you can comfortably pay back, and we’ll work with you to arrange the most convenient repayment plan.
While payday loans may seem convenient, they often lead to people borrowing more than they can afford to pay back or suffering the stress of dealing with sky-high interest charges. As an ethical lender, we don’t work like that. We realise that there is time when virtually everyone needs a little financial help, and we’re here to provide that help.
