Payday Loans or Credit Unions?
In recent years, there has been a growing call for local authorities and other public bodies to provide their staff with the option of a payday loan when they are struggling to make it to the end of the month. This just seems like common sense to a lot of people in today’s world and given the virtue of Councils with the status of stability. They also have access to low interest rates by which employees could seek the advantages of when they find themselves strapped for cash.

What is a payday loan?

A payday loan is a form of short term credit. To obtain it you will have apply for it and pay back interest on it. A payday loan works on the basis that you borrow the money to then pay it back come your next paycheque, so it is a popular choice for many who need money in-between paydays. The funds are paid directly into your bank account once the lender has approved your application, usually within 24 hours of approval, but it can be even quicker. Once the period of time is up, you pay the money back in full along with the interest. You need to be sure that you are going to be able to pay your loan back in full, with any interest and additional charges, before you apply. Failing to do so can cause spiralling debt; having to take out one loan to pay another off. If you are sure that you will be in a financial position to do so, a payday loan is great for those who need money at short notice. Applicants with bad credit scores may find it hard to get a payday loan. As you may be aware, the better your credit score, the more likely you are to get a good deal on a loan. There are many things you can do to improve your credit score, which you can check out here. However, if you do not have time to improve your credit score before taking out a loan, consider Payday Bad Credit. As a payday loans direct lenders, we can assist those borrowers despite their credit rating since we understand that keeping a good credit score is not easy and various circumstances can cause a less than perfect credit history. With us, you can borrow up to £1,100 which you can then repay over several weeks. bad-credit

What is a Credit Union?

A credit union is, essentiality, a community loans provider and a means of collective saving. When we say “community” we are talking about loans which are designed to appeal to those who want to benefit their neighbours and community. They have traditionally been small, not-for-profit organisations which are set up by members who all have something in common; for example, a church group or people working within the same industry. Credit-Union-Logo Since they are not-for-profit, your money will be safe within the credit union. Rates are often low and in most cases, beat the high street rates. Therefore, many see great benefit in credit unions. However, they are distinctly different from stand-alone loans, such as personal payday loans. Belonging to a credit union does not just mean you get access to cheaper loans, but you can also open current accounts and take out mortgages with them. It is dependent on the credit union you belong too, however. Credit unions are more popular in the US but there are still a few hundred of them operating successfully in the UK. For those with bad credit histories and looking for payday loans no credit checking, this can be a viable option, since your credit score is not taking into consideration, it is a non-profit. Credit unions are now becoming increasingly more modern in that they are often moving online and most now have some kind of premises. This is a step away from the church-hall-style collecting reputation credit unions have earned themselves. To be successful, they had to move online in this digital-heavy climate.

Daniel is a loans expert based in London and has been working in the payday loans industry since 2010.