To say payday loans online come with a bad reputation would be somewhat of an understatement. On the surface, they might not seem all that harmful. You have a financial emergency, a payday lender loans you £500, and you have a few weeks to pay it back. Straightforward enough.
However, it’s what lurks beneath that seemingly innocent agreement that can leave you trapped in what feels like a never-ending cycle of debt. Payday loans come hand-in-hand with high interest rates, as they target people who don’t have access to other, more affordable sources of credit.
They also bring the possibility of additional charges to deal with due to the very small window of time you have to pay back the loan. Before you know it, that financial emergency has suddenly become an extremely expensive one.
Thankfully, there’s a safe, secure and speedy alternative to payday loans online. Here’s everything you need to know:
Why are PCCU loans a better alternative to payday loans online?
The ‘U’ in PCCU may stand for Union, but it could just as easily signify ‘understanding’.
We understand that life isn’t always straightforward. We understand that financial challenges can arise unexpectedly. And we understand how a bad credit score can affect future plans.
That’s why, unlike the majority of lenders, we don’t rely on a computer to give us a green or red light. Instead, we take the time to understand a person’s circumstances. By carefully assessing each applicant’s personal situation, we are able to make our loan decisions based on affordability (not just credit scores), and tailor repayments to suit them; repayments that can be made by standing order or a direct benefit payment such as Child Benefit, Universal Credit or Tax Credits etc.
The main reason people prefer Credit Union loans to payday loans online though? Our loans are considerably cheaper. For instance, borrow £500 on our family loan and savings scheme over 12 months at 42.6% APR, and you will pay back just £96.92 in interest.
Even paying it back over a longer period will still be cheaper than a payday loan.
Are PCCU loans quicker than payday loans online?
At PCCU, we will always prioritise accuracy over speed. But that doesn’t mean we don’t understand the urgency that often surrounds loan applications.
Having that money land in your account within 48 hours as opposed to a week could be the difference between paying a bill on time or putting food on the table.
As long as we have all the information needed, you will have a decision within 48 working hours. And once the loan is signed, the money can be transferred into your account the same day.
We also offer free life insurance on all savings and loans, and you don’t need to worry about early settlement fees, either.
To find out more about why we’re a far better alternative to payday loans online, contact our team today on 01282 691333.
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