When consumers think about easy loans, they tend to visit payday loan companies and end up paying an exorbitant amount of interest. However, experts are pointing out that credit unions also offer easy loans, and usually offer much better rates. Credit unions are more regulated and you won’t see the same 400% interest that you would with a payday loan company. For those seeking easy loans, this may indeed be the best solution.”Credit unions offer a great alternative to money shops and payday loans for people needing small loans over relatively short periods,” explains Lucia Webster, Head of Membership Services at ABCUL. “Credit unions charge no more than two per cent on the reducing balance of a loan and many charge just one per cent, which would mean that £1,000 taken out for a month and paid back weekly would accrue just £5.76 in interest at one per cent.She continued, “I would recommend that anyone needing a small loan first looks to their own bank or building society or credit union for a loan, rather than using doorstep lenders or money shops, if they want a good deal. Credit unions are not as well known in Great Britain as they should be but they are basically financial co-operatives which aim to get the best deal for their members. In the US and Ireland, for example, credit unions are very much mainstream financial institutions with millions of members.”
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