Loans for borrowers with bad credit as cost of living soars

With the cost of living rising and household budgets tight, a Welsh community bank has launched a new scheme to help those struggling to afford the things they need.

Smart Money Cymru’s Credit Builder funding aims to extend credit to people who have not been able to access loans elsewhere, and who may have even been turned down recently by other lenders due to poor borrowing history .

But now loans of up to £400 are widely available for new members of Smart Money Cymru and for members who have not 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 was the managing director, Mark White, who explained how the new regime 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. It’s easy to apply for Credit Builder financing online or at one of our branches and one of our client advisors can help you with the application.

“Many of the new members who join want to take advantage of our catalog of home goods, Smart Goods with over 5000 products available, which can be purchased using our loans. You actually receive a £10 bonus in your account on your first purchase of Smart Goods.

“Even if you have a bad credit history and have been turned down for financing and are nervous about approaching financial institutions, we may still be able to help through this program. , and I urge people to apply.”

The important point, he says, is that under the Credit Builder program, there are far fewer situations in which Smart Money enrollment or a Credit Builder loan will be rejected.

Flexible approach

Applications are handled by Smart Money Cymru staff, who take a flexible approach, and it is certainly not a case of ‘the computer says no’, Mr White added. Decisions are made quickly, usually within hours and repayments are over 12 months, weekly, semi-monthly or monthly at the borrower’s option, and there is no penalty for early repayment.

The loans can be used to make purchases from the Smart Goods catalog which offers a wide range of quality products including refrigerators, washing machines and household items. Once the Smart Goods loan is paid off, members can apply for other general purpose loans.

Paying off a Credit Builder Loan is a great way to improve a bad credit history and pave the way for accepting other sources of borrowing.

Interest on Smart Goods Credit Builder financing is charged at 3% per month (42.6% APR). There are no other fees and no prepayment penalties if you decide to pay off your financing before the end of the loan.

This means that a Smart Goods loan of £100 repaid over 12 months will cost you £10.05 per month (total charge for the loan of £20.60). A credit check may be performed on applicants wishing to borrow from Smart Money Cymru Community Bank.

“This is a great scheme, backed by the Welsh Government and it gives people the chance to improve their financial prospects, and we hope it will help people stay away from unauthorized lenders who attack the weakest in our society”,

Mr. White added.

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