Low Credit Score And Christmas Financial Pressure
The holiday season is about joy, but for some parents, it can bring financial stress, especially if they have limited financial sources. If you find yourself in need of extra cash for Christmas but are hesitant about turning to payday loans and surely you want to skip a loan shark, there is a better alternative that could help make your holiday season brighter - a family loan from your local credit union. It doesn't work like a regular loan and we help you save for next Christmas as well if you wish to.
Why Not Payday Loans?
Payday loans might seem like a quick fix for immediate cash needs, especially when low credit score prevents one from getting a low interest small loan. However, the high-interest rates and short repayment terms often trap borrowers in a cycle of debt, causing more financial strain in the long run. If you're already struggling with a low credit score, the last thing you need is to dig yourself further into a financial hole with a payday loan.
A Safer Option: Family Loan from the Credit Union
Reaching out to your local credit union for a family loan is a reasonable option. Credit unions are known for their community-focused approach and willingness to work with members, including those with low credit scores. Unlike traditional financial institutions, credit unions prioritise their members' financial well-being over profit, offering more favorable terms and conditions for borrowing.
Why Choose a Family Loan from the Credit Union?
Lower Interest Rates: We typically offer lower interest rates compared to payday lenders, making it more affordable to borrow money without falling into a debt spiral.
Flexible Repayment Options: Credit unions understand that financial circumstances vary, and they are often more flexible in structuring repayment plans tailored to your needs. Every Family Loan is tailored to be repaid via child benefit, there are other loan options to look into.
Supportive Community: When you borrow from a credit union, you become part of a supportive community that values your financial stability and success. You're not just a credit score; you're a member with a voice. You become a shareholder.
Tips for Applying for a Family Loan:
Check Eligibility: Most credit unions have membership criteria and so do we, so make sure you meet the requirements before applying for a family loan.
Prepare Documentation: The loan application is completed online. After you send the application, you receive a link to connect your personal bank account via Planky to assess affordability (with the Family Loan, we do not rely on credit score). You will need then to proof your ID and address.
Make Your Christmas Merry, Not Stressful
During this festive season, ensure that financial concerns do not overshadow the joy of spending time with your loved ones. Opting for a family loan from your nearby credit union can provide a more cost-effective and manageable way to finance your Christmas expenses, avoiding the risks associated with payday loans. Remember, your credit score should not dictate your financial prospects, and with appropriate assistance, you can navigate towards a happier and less stressful holiday season.
If you are facing the stress of a poor credit rating and the financial obligations of the holiday season, consider contacting your local credit union for a family loan. Make the right financial decision to enjoy a more cheerful and worry-free holiday season.
