The Alternatives to Short-Term Credit

Date: 21 December 2021

For many members accessing short-term credit is unavoidable so if you need money fast, is there another, better way?

In the third and final part of our blog series on short-term credit, we’re exploring alternatives to credit cards, overdrafts, payday loans and buy now, pay later offerings.

If you missed one and two in this series of blogs why not catch up now?

Otherwise, let’s dive straight in.


Short-term credit – a necessary part of life?

It’s not unusual to need a little extra cash to tide you over until payday from time to time. After all, life has a way of throwing financial challenges our way when we least expect them, whether it’s an unexpected car repair, a broken boiler, or that school trip you forgot to factor into your budget.

We understand that smoothing out your cash flow can be difficult and there are times when households need to spread the cost of larger outgoings to balance the monthly budget.

Credit cards, payday loans, and overdrafts, aren’t your only short-term cash option. Indeed, there is much data to support the conclusion that these services are best avoided altogether.

It is possible to access more affordable, flexible and fairer short-term borrowing from a responsible lender who won’t push you outside of your financial comfort zone.


GMB members have access to fast, fair, flexible borrowing

GMB members can apply for loans quickly and easily through our website. The benefits of borrowing from your own Credit Union include:

•    Unbeatably low-interest rates
•    Repayment terms to suit individual circumstances
•    Flexibility, with the ability to top up existing loans
•    No loan fees
•    No early repayment charges
•    Interest charged on decreasing loan balance
•    Paperwork kept to a minimum

With a range of loans available to match your needs, we’ll support you in making the right decision. As a responsible lender we lend against your affordability as we do not wish to over burden our members financially.

When you apply for a member loan, we treat you as an individual – rather than simply looking at your credit history. As a result of the data you agreed to share with us through open banking, we can build a more accurate picture of you and your circumstances, allowing us to suggest on the best way forward for you.


GMB Credit Union alternatives to short-term credit

We want to protect you from the perils of short-term credit because we care about you, your family, and your financial resilience.

In addition to fair and flexible loans, we offer a Cash Flow account which is a pre-agreed overdraft facility for members with a very competitive interest rate and no eye-watering fees.

With a pre-approved credit limit, you can request funds quickly via the GMBCU app and receive the funds on the same day. Plus, the application process does not harm your credit score as we do a soft search on your credit file on application.

Unlike other overdrafts, our Cash Flow overdraft has a fixed monthly repayment, so you stay in control and avoid the temptation to overspend.

Download the GMBCU app now from the Apple store or Google Play. 


Improving your financial resilience is our commitment

We understand how tempting short-term credit can be when life throws you a curveball. GMB Credit Union provides alternative fair finance to support you to make the best decisions for your financial wellbeing, whatever happens.

Established as an exclusive member benefit over twenty years ago, GMB Credit Union goes that little bit further to support you through life. That’s why we continuously evolve our products to make sure they measure up to your changing needs.

Find out more about our affordable, fast, and fair short-term borrowing options here.