Life has a way of throwing unexpected expenses our way, especially when you are a parent or carer of younger kids. Finding extra money for things like broken washing machines, school trips, back to school, or Christmas can be a real worry.
Many of us choose to borrow to help spread the cost. That can often mean putting it on a credit card you will pay back in a month or two. Other people may decide to temporarily dip into their overdraft.
But if you rely on benefits as your income or have a less-than-ideal credit file due to past mistakes, that might not be an option. Borrowers from these backgrounds are less likely to be approved for a loan by big lenders. In that situation, and if you are feeling stuck, you might feel like the only option is high-cost doorstep or payday lenders. But there is a better way…
Child Benefit Loans: Your Trusted Financial Support
At London Mutual, we believe that everyone deserves the chance to make the most of their money. We have designed our Child Benefit Loans to help parents with unexpected expenses.
We know that life is full of surprises, That’s why we give a straightforward solution that is based on understanding people like you and which helps you in the long term. As a not-for-profit lender, we are all about doing what is best for our members – not ripping you off in your time of need.
A Better Way Forward
Fair Interest Rates: A Clear Approach
Our Child Benefit Loans come with a clear interest rate of 42.6% APR – that’s 3% per month. Interest is based on the length of time you need to borrow. So if you only need to borrow for a couple of months to tide you over, you will pay £48 in interest on a £600 loan. There are also no early repayment charges either. That means if you want to repay sooner, just let us know, and you will pay less interest.
Flexibility that Fits Your Reality
We understand that everyone’s situation is unique. That is why all applications are looked at by an experienced member of our team. They will take the time to get to know you and your finances. Things like past CCJs (County Court judgements) aren’t necessarily a deal-breaker, especially if you can explain what happened. What matters most to us is making sure that you are not going to struggle to make repayments. So even if we can’t approve the full amount, we will often be able to offer you a little less.
Saving While Moving Forward
One of the worst things about payday lenders is how they trap you on a never-ending treadmill of debt. As a credit union, our goal is to help you over the long term. We encourage you to pay a little extra each month so that you save while you repay. This means that once your child benefit loan is paid off, you will have built up a pot of savings. Keep it for Christmas, or a rainy day or keep on growing it. It is your money, and it’s up to you.
Improving Your Credit Story
Your credit history might have ups and downs, but past mistakes shouldn’t determine your future. When making our decision, we work to see the person, not just a credit score. And, if we offer you a loan, each month, we’ll report your child benefit loan repayments to a credit referencing agency. This should help to build and improve your credit history over time.
A Caring Community
Joining London Mutual Credit Union means becoming part of a group of people committed to making money go further for ourselves and for our community. Over time, we will work with you to build savings, and after your first loan is paid off, you might qualify for another loan of up to £1,200. We also run online events like webinars and have tools to help you feel more confident in managing your money.
Becoming a Member of London Mutual Credit Union
Eligibility is straightforward. Anyone who receives child benefits and lives or works in Southwark, Lambeth, Camden, or Westminster can join us. You may also be able to join if you or your partner are in HM Forces or work in a health or education-related occupation anywhere in Greater London.
Choosing a Brighter Path
When your financial journey gets challenging, having a reliable partner is crucial. London Mutual Credit Union’s Child Benefit Loans offer a practical and understanding alternative. It’s designed to give you peace of mind and help you on your financial journey, even if you are on benefits, unemployed or have made mistakes with credit in the past.