UK Bill Help

High street borrowers often forget that lower rates are available through nonprofit lenders like Kernow Credit Union (KCU). This financial institution is open for membership to anyone that lives or works in Cornwall.

This credit union offers another way for people to bridge the money gap when a financial emergency causes a shortfall. It is especially helpful for those who do not qualify for Universal Credit due to household income being above the threshold. Households with higher incomes can still find themselves in serious financial trouble when an unexpected expense forces a choice of which bills to pay.

Where Kernow Credit Union can step in is to provide short-term financing through loan products available to members. These products could provide funds needed to pay rent or utilities for a month or two while the family goes through a transitional period. For example, if someone just started a new job, they might still have to wait up to a month to receive a full paycheck. A loan could help them pay all of their living costs without threatening their credit rating or causing late fees. There are a few primary products offered to members.

Standard loans

Partially secured loans are available to cover immediate financial needs. With a 26.8% APR currently (confirm with KCU as these rates are subject to change), the unsecured product is vastly cheaper than high street loan rates that can go 1900% APR or higher.

In order to reduce risk, borrowers must be members in good standing for at least eight weeks prior to submitting a loan application. Additionally, borrowers must maintain a loan reserve in savings of at least 33% of the balance. This means that borrowers with £300 in their shares account could borrow as much as £900 through the Standard Loan product.

Secured loans

Having a higher balance in reserve can allow an applicant to borrow a similar amount through a secured loan. A borrower with £800 in shares could borrow £800 at a much lower rate of 6.34% APR.

Either loan product may be included on a loan application which will be considered by the Credit Committee. Most loan approvals are made within a week of the application.

Cornwall’s Kernow Credit Union is a great alternative to high street lenders. While nothing beats a grant, many households cannot qualify for government grants or charity aid. For those who need extra options, a nonprofit lender can usually provide a better rate than most for-profit lending institutions. Those who live in Cornwall may find that Kernow Credit Union is a reasonable option for covering temporary financial needs. A sit down with a credit union representative is the first step to applying. Call 01209 314449 to speak with a representative in the Redruth branch office. KCU has over a dozen branches, though many have limited hours. Anyone living or working in Cornwall can enquire about membership and ask questions about loan products prior to making a decision.