Searching for a cheap loan?

Monday, 17th May 2021

Put ‘cheap loans’ into Google and you will most likely see adverts for banks and price comparison sites – but you could still be missing out on the perfect loan for you.

The best way to decide how to borrow money cheaply is to think about how much you want to borrow, how long you will need it for, and how you are planning to pay it back. Also keep in mind what you want the money for - is it to purchase something new, or to repay other money you owe elsewhere?

Because of the way Credit Unions are run, we can offer affordable loans with varying repayment terms and, unlike many other financial institutions, we will consider applications from everyone – regardless of your financial background or credit history.

Be wary of offers that look too good to be true – loan sharks may offer low rates to start with but, without any paperwork, they can increase the amount you owe without warning and pay day lenders can make you pay over the odds to get money straight away.

It’s important to remember you have to pay back what you borrow. As a Credit Union we will never lend you more than you can afford to pay back or change your rates, and all our loans include an element of saving so when you have repaid the loan you have a pot of money to help improve your future. We can also get your money to you on the same day if you need it.

So, if our deals are so good why aren’t they included in price comparison websites?

Well, it seems the tide is turning, credit reference agency, Experian, recently announced it’s planning to include Credit Unions in their eligibility checkers. They made the decision after discovering that around 25% of their customers are not eligible for mainstream loans but still need a way to borrow safely.

We think this is a great move and makes it a lot clearer to people of all the options available to them – hopefully the other big comparison sites will follow suit so people looking for a loan will not only get the cheapest option but also the best option for their personal circumstances.

Tony Brockley, Chief Executive Darlington Credit Union