COVID-19 Help

If you have suffered a loss of income due to Covid-19 we are able to offer reduced payment plans and deferred payments to assist during this period

Please note that interest on your loan will still be charged daily on the account

3 Things to Consider When Comparing APR


“Still at apr of over 40% it’s a little higher than one would like but WAY better deals than Brighthouse and others on the high-street. Thanks for bringing this to my attention” – commenter on Facebook.

interest rates directionsWe saw this comment and thought you might benefit from an explanation. So, we’re going to explain our interest rates a little bit.

Compared to the rates advertised by banks and building societies, and even credit cards, we understand that our interest rate may seem expensive.

Fair for You charge its interest on a daily basis and apply it in arrears, either weekly or monthly depending on when you choose to make your payments. Our interest is 3.75% per month which compounds to an annual percentage rate of 55.6% as a maximum cost.


However, here are three things to consider when you compare us to other interest rates:

  • We do not add any fees in the way that banks do. This means:
    no arrangement fees
    no monthly fees
    no late fees
    no management fees
    no repayment fees (some high street banks, for example, ask for a penalty of 2 months interest if you repay a loan early)
  • People put their money in banks, building societies and credit unions. Those savings can be lent out if they are paying a very low interest rate on those deposits, whilst we have to borrow at commercial rates.
  • We are very proud that we are able to match the interest rate charged by credit unions even though some of our loans are only £100. Most banks and building societies would not make such small loans to new customers.

We are campaigning hard for help to be able to lend at lower interest rates. As we are owned by a charity, you can rest assured that we will keep our rates as low as they can go.

Does this help? Any questions? Comment below and let us know! Would it help you if we tried to show better ways to compare our loans to other lenders?

You can read more on the basics of credit & borrowing on this Money Advice Service article.


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