How often have you seen lenders advertising a ‘low APR loan’ only for you to be left feeling even lower when you read the fine print?
‘Headline rates’ are often used to lure potential applicants in, but when dealing with unscrupulous high-street lenders, they rarely tell the full story.
You may have heard the term ‘representative APR’.
APR – or annual percentage rate – is the total cost to borrow money. It takes into account interest rates, as well as other fees associated with the loan.
A ‘representative’ rate is the rate that at least 51% of people can expect to be offered. What the words ‘representative’ and ‘low APR loan’ won’t reveal on first inspection is that almost half the people (49%) who are approved for the loan or credit may not be eligible for the advertised rate. This then means a higher interest rate and larger repayments.
Remember, if something seems too good to be true, it probably is.
Unless of course we’re talking about a low APR loan with PCCU. Because what you see is what you get with PCCU.

How is PCCU able to offer such a low APR loan?

Well, firstly, we care! Our account holders aren’t just numbers on a spreadsheet to us. Unlike with some lenders; our account holders are part of the PCCU family.
PCCU is an ethical lender, a not-for-profit co-operative, with no outside shareholders’ pockets to line.
When we’re looking at interest rates and calculating repayment plans – the only thing we’re concerned with is whether you’re getting the best deal.
Banks are about profits; PCCU is about people. Any money we do make goes straight back into the community where you, your family, and your friends, are able to benefit from it.
Credit unions can actually 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 £150 to £15,000, that can make a big difference.
If you’d like to see how we compare with other lenders at £500, the table here will show you.
And remember, with PCCU, the rate we quote you is the rate you pay, every single time.

Will bad credit harm my chances of getting a low APR loan?

Bad credit doesn’t have to mean bad news when it comes to getting a low APR loan.
PCCU understands that people’s finances are rarely black and white. That’s why all applications are assessed by highly trained members of staff, not unsympathetic, number-crunching computers.
We look beyond credit scores. We talk to people about how they have addressed their past borrowing; we look at income and expenditure and go over the best loan options available.
Once we have all the information we need, we will look to make a decision within two working days.
If you have any questions concerning low APR loans, don’t hesitate to contact our friendly and knowledgeable team, who will be more than happy to help.