Credit unions offering personal loans

Wed, 07 May 2008

Credit unions offer a great alternative to taking out a short-term personal loan, it has been claimed.

Lucia Webster, head of membership services at the Association of British Credit Unions (ABCUL), explained that people who took personal loans from so-called money shops face paying extortionate rates of interests .

She said: " 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."

Anyone looking for a good deal on a short-term personal loan should look to a credit union first, rather than a money shop, as they will get a better deal if they do so.

Last week, Michelle Slade of Moneyfacts.co.uk, analyst at Moneyfacts.co.uk, stated that there are still some good personal loans of offer if people shop around.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

SimplyHealth Dental Plan
Get covered from £7.70 per month!
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form