Ditch the Doorstep Lender

06/10/2017

In the Summer, we once again saw negative press coverage relating to doorstep lenders – Provident Finance in particular. We already knew about their very high interest rates, but when we read about them charging customers more than 1,500% APR just to borrow £100 for 13 weeks, we couldn’t believe it!

“But, no one else does small loans. I need one for Christmas - I’ve got no choice.”. These are the words we hear every year from those who don’t yet know about credit unions. As a credit union, we want to spread the word that we can offer both small loans and large loans – all without charging a bunch of interest. You’ll never pay more than 42.6% APR on loans under £1,000 with the Credit Union.

“Interest rates mean nothing to me.”. We get it - it can be very confusing. Here are a couple of examples of a Credit Union Loan compared to one from the Provident. Focus on the total repayment and amount saved:

 

 200 paid over 52 weeks

 

 APR 

 Weekly Payment

 Total Repayment

Credit Union

42.6% 

£4.60 

£239 

 £135 saved

if you come to the Credit Union

Provident

299.3% 

 £7.20

 £374

 

 

 500 paid over 52 weeks

 

 APR 

 Weekly Payment

 Total Repayment

Credit Union

42.6% 

 £11.50

 £596

£340 saved 


if you come to the Credit Union

Provident

299.3% 

 £18.00

 £936


Check out our loan calculator to make further comparisons.

Now that you’ve seen how much you could save with a Credit Union Loan, why not give us the chance to help you out this Christmas? Ditch the Doorstep Lender.


Bonus: We’re currently running a refer-a-friend promotion with a special Christmas treat up for grabs and a prize draw entry to win a hamper worth over £50 - Read more.


All loans provided by Hull & East Yorkshire Credit Union are subject to status and our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.


* Representative example from www.providentpersonalcredit.com on 6/10/17.