Choosing the Right Credit

Almost everyone has some form of debt, be it money owed on a credit union loan, bank loan, car finance, overdraft, mortgage or credit card. Quite easily despite the best of intentions we can build up a considerable debt and allow it to spiral out of control.

Unfortuantely, this has been the case for many people in Ireland as the banks here in the last ten years have allowed an unprecedented (and many would say reckless) level of access to easy credit. The addition of in-store credit and car finance has added to this problem. It is important therefore to understand how credit works and how to manage debt properly to prevent your finances sinking.

CHOOSING THE RIGHT CREDIT FOR YOU

There is a wide range of types of credit available ranging from your credit union loan to your credit card. They all can charge a different interest rate on the amount that they lend to you. They also have a variety of different terms and conditions attached to each. It is important to understand the basics of this when deciding which credit you want.

Every loan or credit that is advertised must be advertised with the A.P.R clearly indicated. This is the Annual Percentage Rate. This is the standardised interest rate that allows you the consumer to compare one product to another. When uou consider a loan however, it is also important to take into account the terms and conditons attached to the loan.

Quite often banks will advertise a lending interest rate that seems attractive at first but when you look a little deeper you find that they have added conditions to those loans that are restrictive and could ultimately cost you more in the long run. The quoted low interest rate may only apply to loans over 25,000 for example and may carry penalties for top-up or early repayment.

BEWARE Money Lenders offering doorstep credit can legally charge an APR of 187.2%, an exceptionally high rate of interest. They sell this on the basis of having to a low amount per week, but when you add up all the payments you end up paying back an awful lot compared to what you borrowed. Should you find yourself in difficulty, remember the doors of the Credit Union are open to you. You are a member, it is your Credit Union.

The Credit Union currently has a better personal loans interest rate than the banks, 9.4% and has far better terms and conditions such as free death insurance, no charges on early repayment of loan, no charge for topping up and the possibilty of getting a refund of interest that you pay to us. We lend money on a persons ability to repay.. it does not matter how much you have in savings.

We are here for your profit… not for profit.