Community finance providers are good news for tenants.
NestEgg’s platform helps tenants avoid getting into arrears.
By accessing affordable credit, tenants are less likely to spend money servicing high cost interest payments or use your rent as an interest free loan.
NestEgg provides one place for people to check whether qualify for loans from responsible lenders across the UK.
And the service is much needed:
The free-to-use platform filters eligibility for loans. As a result, the options available for people on lower incomes are increased.
Consequently, potential borrowers can see if they meet a lender’s criteria to be accepted for a loan. Next, an application can then be submitted with just one click.
Importantly, if declined for a loan, NestEgg provides bespoke tips and advice to help the applicant get accepted next time.
Don't take our word for it...
I became a member of the credit union in 2019 and went to see them because I was in rent arrears. In fact, I owed six months’ rent because I found it really confusing not knowing whether to apply for Universal Credit or Housing Benefit. Because of this, my claim was refused and I may have been evicted.
Now, I can honestly say this was the best experience of a financial business I’ve ever had in my life.
NA, Member of Central Liverpool Credit Union
Borrow less, save more
Of course, savings play an important role.
Although the Financial Conduct Authority found that 13% of households had no savings at all, this leapt to 80% amongst social tenants and 40% amongst private renters.
Furthermore, three quarters of people borrowing from high cost lenders had no savings.
Therefore, there’s a clear link between having no savings and using higher cost credit.
After 5 years, members have typically saved 59p for every £1 borrowed0%
With 1 in 10 renters having arrears, the cost of an eviction estimated at £23,000 and the cost of living crisis biting, NestEgg’s platform couldn’t have come at a better time.
This is a great opportunity to support tenants, with clear benefits for landlords.
Read the case study
See how Central Liverpool Credit Union help reduce the vulnerability of their members, 90% of whom come from the top 20% most disadvantaged areas in the UK.
Finding an affordable loan
1. Check to see which lenders you qualify for
Lenders typically have a membership qualification.
For example, you must live in a certain area or work for a certain employer.
NestEgg quickly checks this. As a result, you can find the lenders that best match your personal circumstances.
2. See if which loans you would be accepted for
A soft credit check is undertaken to see if you’d qualify for loans from your chosen lender(s).
Importantly, this check has no impact on your credit score.
Loans are then sorted according to the likelihood that you’d be accepted. The loans with the lowest interest rate are shown first.
Choose a loan you know you’d be accepted for (green) or where you have a reasonable chance (amber).
4. Get tips and advice
If your chances are too low to apply, sign up for tips and advice. Our simple suggestions will help you improve your credit profile. As a result, you're more likely to be accepted next time.
Of course, even if your credit score is OK, there’s always room for improvement.