Phrases like ‘low APR loans’ can be as annoying as they are confusing to the ordinary person on the street.

After all, it’s not as if we’re taught about financial services at school. Yet the older we get, the more often we seem to come across terms like ‘representative APR’, ‘credit score’ and ‘fixed interest rate’.

Now, you’re not going to get much help from PCCU if you come to us asking about politics or science, but when it comes to low APR loans, well, we do consider ourselves top of the class.

That’s not just because we understand how low APR loans work, but because we understand how they work best for you.

What does representative APR mean?

Before we go into what low APR loans are, or what representative APR is, we should explain what APR actually stands for.

Simply, APR is the overall cost you pay each year to borrow money. This is expressed as a percentage – your Annual Percentage Rate.

The best way to compare loans or other sources of finance is representative APR. This paints the fullest picture, taking into account the interest rate, along with any additional charges/fees.

What you tend to find is that the majority of lenders will advertise a ‘representative APR’. This is the rate that at least 51% of those accepted for credit will get.

However, this means that almost half the people who are approved for the loan or credit may not be eligible for the advertised rate, leaving them hit with a higher rate of interest and a higher rate of borrowing.

With PCCU, the rate we quote you is the rate you pay, every single time.

And remember, all lenders have to tell you what their APR is before you sign a credit agreement.

How is PCCU able to offer such low APR loans?

You can’t spend longer than a minute on our website without seeing the words ‘not-for-profit’. Those three little words are extremely important to us.

Being not-for-profit enables us to keep our interest rates as low as possible. How low? Well, this table – www.pccu.co.uk/family-loan/ – shows how much you’d be expected to pay back on a £500 family loan in comparison to other lenders.

We can offer these rates because we’re not here to line external shareholders’ pockets. We’re here to help people in the community access ethical savings.

Credit unions can only charge a maximum of 42.6% APR. However with PCCU, the higher the loan value, the lower the APR will be. And with loans ranging from £500 to £15,000, that can make a big difference.

Whatever the APR of your loan, rest assured, repayments will be tailored to suit you and your financial circumstances.

If you want to talk about low APR loans, or anything else related to borrowing, feel free to speak with one of our highly trained members of staff today.

PCCU’s quotations are free, and involve no set-up fees. This means you have all the time in the world to find the best loan out there for you.