Hard up Brits living in the Sandwell area might be interested to learn that the 6Towns Credit Union is soon to start offering cheap short term loans.
The not for profit organisation, which offers financial advice to anyone either living or working in the Sandwell area, claims that their short-term loans will be the cheapest in the UK. The estimated launch date is the first of November.
Applicants must be over the age of 18 and working a minimum of 20 hours per week. In the first instance people will only be able to apply for small loans up to a maximum of £400 and they must be able to repay the money in full within a period of 28 days.
Meanwhile, a lot of people may be wondering how providers of instant cash loans decide who it is safe to lend to.
Wonga, in common with the majority of instant cash loan providers, have a secret algorithm that is used to determine an applicant’s suitability. Wonga has been in the short-term loans business since 2007. They only lend amounts of less than £1,000 and have been accused of charging exorbitant interest rates. Since its launch, the company has made in excess of 2.5 million loans; and 830,000 of them have been in the last 12 months.
It might surprise you to learn that Wonga conducts between 6,000 and 8,000 checks on every applicant! You are asked to provide some of this information and some is publicly available over the Internet. All the information then gets fed into the algorithm to determine an individual’s creditworthiness and if the final result passes muster, the amount requested is transferred within 15 minutes.