OTHER CREDIT SOURCES

OTHER CREDIT SOURCES

There are other ways to get credit if you cannot get a bank, building society or credit union loan, or if you want to borrow a smaller amount than a bank will give, or need a specific item. If, for example, you are looking for household goods, and are thinking of using a high street rent to buy organisation, such as Bright House, or a doorstep lender like Provident, or even a catalogue, there may be a cheaper alternative.

You might also have heard about someone in your community who will give you a loan, no questions asked. This is likely to be an illegal lender or loan shark who may seem friendly at first, but:

•   You might be pressured into borrowing more money to repay one loan with another and end up in a spiral of debt that you can never repay.

•   You or your family might be harassed or threatened if you get behind with your repayments

•   You will pay far more in interest than you would through any legal borrowing.

See our film below for more information on Loan Sharks and how they operate

 

It’s always best to use a reputable, legal lender like a credit union or one of those below.

Fair For You is a not-for-profit organisation that provides a great range of products from washing machines, fridges and beds, to prams and car seats. Goods can be paid for on a weekly, fortnightly or monthly basis and the interest rate, at 3% per month (42.6% APR), is much less than High Street rent to buy stores. They can also uplift old items.

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Scotcash provide personal loans starting from just £50. A not–for–profit Community Finance Initiative, they provide a cost effective alternative for loans where a bank or building society cannot help. Loans are based on your current circumstances, not your past credit history. If you are looking for a quick, smaller loan you can apply to Scotcashonline. They also have an office on High Street in Glasgow.

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The Responsible Finance website has a search function here which gives you options for fair credit in your area.

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