Aberdeen credit unions are the cheaper lending option

Nonprofit lenders in the form of credit unions provide one of the cheapest borrowing options for Aberdeen residents. These are not just for poor people or those who do not manage their money well. They are actually a smart choice for the local citizen who cannot justify paying the inflated fees charged by high cost lenders.

Compared to the 4516% representative APR charged by one prominent lender on Union Street, the rates charged by Aberdeen’s three most prominent credit unions are a fraction of that amount. Membership is expected to grow as more local residents discover the advantages of dealing with nonprofit financial firms.

Grampian Credit Union provides introductory loans that can be applied for at the time of applying for membership. Up to £5,000 could be obtained for just 26.8% APR (based on current rates). Someone can even take up to three years to repay the balance.

This lender offers several types of short and moderate term products that can be used to cover emergency financial needs. Options include the Fast Track Loan, Flexi-loan, Member Loan and Bonus Loan.

Their Low Income Loan is one of the best solutions for a lower income resident who cannot qualify for a normal cost product. Funds can be approved for someone even if they are on benefits. As long as someone is receiving at least £100 per week, they could apply for up to £250 and pay as little as £12.00 per week.

Applications for membership and funding are accepted at 224 Holburn Street. Enquiries are accepted on 01224 576990.

North East Scotland Credit Union (NESCU) offers exceptionally low rates of 12.68% APR. That is basically one percent a month. It is one of the cheapest borrowing choices available anywhere in the UK.

NESCU provides cash for a number of purposes, though it does not have a history of short-term lending. That may be about to change as the leadership has indicated a willingness to consider providing payday loans at a low rate, and possibly as low as their everyday low rate. No terms have yet been issued, though applicants may present their need for consideration.

Citizens may call on 0300 66 63728 to speak with a representative about membership and rates. The office is located at 7 Finnan Place.

St Machar Credit Union Ltd provides cost-effective options for helping meet cash shortfalls on a temporary basis. Membership is limited to residents of Froghall, George Street, Heathryfold, Hilton, Linksfield, Middlefield, Old Aberdeen, Powis, Seaton, Sunnybank, Tillydrone and Woodside. Life assurance covers any remaining balance upon death, making this a great benefit for Seniors wary of burdening their heirs.

Anyone who lives in these areas is eligible to apply for membership. Application may be submitted in person at the office on Marquis Road in Woodside. Telephone is 01224 524935.

All three credit unions offer much of the same access to funds as their for-profit counterparts. The difference though is that no profits are extracted by the owners. Since the members are the owners, all surplus funds stay within the organisations for the benefit of all members.

While Aberdeen has other financial firms that can meet the needs of many citizens, none can match the dedication to the local community of these three co-operatives. As people embrace the advantages offered by credit unions, fewer will become ensnared by doorstep sellers and loan sharks.