Kent Savers – eminently affordable loans

It’s still happening then.  With thousands of families  gripped by financial hardship it seems there’s never a shortage of people making profit from someone else’s hardship.  Following on from my posts about moneylenders Wonga.com and their exhorbitant APR interest rates, I noticed a television advertisement for ‘Quick Quid’.  Apparently ‘approval takes up to 30 minutes in most cases’ and you can get your money on the same day ‘if approved by 14.30’.  At 2356% typical APR, Quick Quid’s interest is staggering.  But it still doesn’t match Wonga.com who boast a mighty 2689% typical APR.

At this point, it seems sensible – at least for those of you living in Kent – to give a plug for Kent Savers, the newly-launched countywide Credit Union, whose APR is eminently more affordable! They can be contacted at www.kentsavers.co.uk, or by phone on 0300 456 9990.

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One Response to Kent Savers – eminently affordable loans

  1. John says:

    While I can completely understand shock and concern over these staggering APR rates, this post underlines the inappropriate and grossly distorting nature of APR when applied to ultra short-term credit.

    I work for Wonga and the reason our APR is even higher than payday lenders like QuickQuid is simply because we offer more flexible and shorter loans of 1-31 days. We charge interest by the day, so the shorter the loan, the lower cost, yet the APR calculation involves theoretical multiplication and compounding – the shorter the period, the more times you need to multiply to make it up to a year.

    A Wonga loan of ten days comes with actual interest of around 10 percent, roughly £10 for a £100 loan. Even the OFT has stated that consumers don’t find APR a useful measure for short-term credit because of the distortion involved.

    I’m not trying to suggest this is a cheap form of borrowing, or that APR has no place in credit but, for occasional and urgent needs, we provide a very transparent, flexible and fast alternative to long-term credit commitments.

    We don’t take advantage of anyone, we hide nothing and the only reason Wonga can make instant decisions is that we spent three years developing the world’s most sophisticated loan processing platform that uses thousands of pieces of data to make responsible decisions.

    We are highly selective in who we help and decline the majority of first-time applicants. As a result we have industry-leading arrears rates and our customers love the service.

    Thanks for letting me make these points and tell another side of the story.

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