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Affordable Credit

At some point in your life you will probably need to borrow money. This may be for any number of reasons and can include personal loans, mortgages, credit cards or purchasing household items/clothes/electrical goods on credit. Borrowing money is not necessarily a bad thing, but it can cause problems if you can’t afford to pay it back and incur additional charges or have to pay a very high rate of interest on top of the amount you borrowed.

There are a number of affordable credit options available to people in Newcastle such as Moneywise Credit Union Ltd and Five Lamps.  They may be able to help you if you’ve been refused credit by other lenders. If they can’t offer you credit they will be able to tell you what you need to do to put this right.

Expensive Credit

Pay day loans may seem like a quick fix solution, especially if you have been turned down for a loan or credit, but they are a very expensive way to borrow money. Some pay day lenders charge an excessive interest rate.  Moneywise Credit Union do offer affordable pay day loans up to a maximum of £300 and the longest repayment is 2 months.

Illegal money lenders or Loan Sharks operate outside of the law, taking advantage of people who need cash quickly. They often charge very high interest rates (3% per month and 42.6%APR) and sometimes use threats and violence to frighten people who can’t pay back their loan. They may resort to bullying and threatening tactics to try to recover the debt. Please do not be tempted to use a loan shark  even if you think you can’t borrow money because you have a poor credit history, are struggling with your finances or your income is low.  Please see the article on Loan Sharks for more information and how to report a loan shark operating in your area.

Affordable Credit Available Locally

Five Lamps operate through a trading company, Conduit.  They offer affordable personal loans with repayments that suit your individual finances.  Five Lamps can also help you with initial debt advice.

Moneywise Credit Union Ltd offers a range of loan options depending on how long you have been saving. Credit unions such as Moneywise rely on members’ deposits to provide loans so part of the commitment when joining a credit union will be to save regularly. This not only helps other members but also starts a regular saving habit.

They also offer a Credit Repair Loan to help improve your credit rating, budget accounts and starter loans.

Street UK provides short-term personal loans online. Their interest rate is higher than Credit Union.

Fair For You CIC is a not-for-profit online company that offer household goods and prams.

Other Useful Information

  • Borrow Wisely leaflet from Newcastle City Council for more information on making good decisions about the best way to borrow money.
  • Are you worried about money? leaflet from Newcastle City Council for more information if you are worried about debts, want to get an affordable loan, or need to know how upcoming benefit changes will affect you.
  • Managing your Money article on Information Now for more details on how to budget and make the most of the money you have


Last updated: December 17, 2019

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