YourCU extends affordable credit
14 Dec 16
Kensington-based Your Credit Union is making it easier for people on benefits to access affordable credit.
Many people on benefits find themselves rejected by mainstream lenders or facing very high interest rates from specialist lenders, so the credit union has stepped in to help people in this situation to find an affordable loan to help cover the cost of Christmas.
By instructing Government bodies to pay their benefit direct to their credit union account, individuals can ensure they will always have funds to make their loan repayments, giving the credit union confidence – once it has assessed the borrower’s income and expenditure to ensure repayments are affordable – to approve loans at fair interest rates which other providers might refuse.
Your Credit Union’s William Rhodes said: “Things are very tough at the moment; there are caps on state benefits, the cost of living is on the rise, and London is the most expensive place to live in the country.
“We see a number of people with nowhere left to turn. Some have had to pawn things like their wedding rings, or are in the grip of doorstep lenders or loan sharks.
“Even if people have poor credit histories, we are usually able to help them, because effectively we are getting a reliable way of the loan being repaid.”
Loans are typically in the region of £500 to £600 to help people get through the expense of the Christmas period.
As well as being encouraged to start saving regularly with the credit union, this responsible borrowing could also have a positive effect on people’s credit ratings, as paying their benefit direct to the credit union ensures payments are always made in full and on time.
Your Credit Union serves anyone who lives, works, studies or volunteers in The Royal Borough of Kensington and Chelsea, Hammersmith and Fulham, Westminster and the City of London. It currently has more than 1,200 members and has to date made loans worth over £1 million to local people.