If you need a loan, there are a number of services which can help you, even if you have been turned down for a loan in the past.
You may need a loan to replace essential white goods, cover the cost of new school uniforms or to prepare for Christmas, birthdays or an upcoming holiday.
Before applying for a loan, ask yourself:
- Do I really need the extra money?
- Can I really afford the repayments?
- What if my circumstances change?
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 unreasonable payment terms. Instead, here are some affordable money lending options you may want to consider.
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 your local Credit Union, please click here.
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, please click here to visit Fair For You’s website.
Loan sharks
Always avoid borrowing from loan sharks. Loan sharks will often offer cash loans with no paperwork and add huge amounts of interest or APR to your loan, making it very difficult to clear any debt. If you are struggling financially, please call our Welfare Benefits team on 0330 303 2222 and select option 7 when prompted.
