As the cost of living rises and household budgets are squeezed, a Welsh Community Bank has launched a new scheme to help those who are struggling to afford the things they need.
Smart Money Cymru’s Credit Builder finance aims to extend credit to people who have not been able to access loans elsewhere, and may even have been turned down recently by other lenders due to poor borrowing histories.
But now loans of up to £400 are being made widely available for new members of Smart Money Cymru, and to members who haven’t yet taken out a loan, even if their credit status is not good.
Smart Money Cymru Community Bank has offices in Caerphilly, Blackwood and Tredegar. It’s Chief Executive, Mark White explained how the new scheme works.
“It is very easy to become a member of Smart Money Cymru Community Bank. We now have 8000 members and more are joining all the time. Applying for Credit Builder finance is easy online or pop into one of our branches and one of our Customer Advisers can help with the application.”
“Many of the new members joining us want to take advantage of our home goods catalogue, Smart Goods with over 5000 products available, which can be bought using our loans. You actually receive a bonus £10 in your account with your first Smart Goods purchase.
“Even if you have a bad credit history and have been turned down for finance and are nervous about approaching financial institutions, we may still be able to help under this scheme, and I would urge people to apply.”
The important point, he says, is that under the Credit Builder scheme there are far fewer situations in which membership of Smart Money or a Credit Builder loan, will be rejected.
Flexible approach
Applications are dealt with by Smart Money Cymru staff, who take a flexible approach, and it is certainly not a case of ‘Computer Says No’ added Mr White. Decisions are made swiftly, usually within hours and repayments are over 12 months, weekly, fortnightly or monthly to suit the borrower, and early repayment is not penalised.
The loans can be used to make purchases from the Smart Goods catalogue which offers a huge range of quality goods including fridges, washing machines and items for the home. Once the Smart Goods loan has been repaid, members can apply for further loans for general purposes.
Repaying a Credit Builder loan is a good way to improve a poor credit record and to pave the way to being accepted for other sources of borrowing.
Interest on Smart Goods Credit Builder finance is charged at 3% per month (APR of 42.6%). There are no other charges and no penalties for early repayment if you decide to pay off your finance before the end of the loan.
This means that a £100 Smart Goods loan paid off over 12 months will cost you £10.05 per month (total charge for credit of £20.60). A credit check may be performed on applicants looking to borrow from Smart Money Cymru Community Bank.
“This is an excellent scheme, supported by the Welsh Government and it provides an opportunity for people to improve their financial prospects, and we hope it will help people keep out of the clutches of unauthorised lenders who prey upon the weak in our society,” added Mr White.
