Providing affordable, ethical credit to purchase essential goods

People excluded from affordable credit need support

Access to credit in the UK is often driven by an individual's credit score. As a result, people who are currently facing or have previously faced difficult financial circumstances are more likely to be excluded from mainstream credit. This means they may feel forced to resort to prohibitively expensive payday loans, or even loan sharks. With the rising cost of living, more families than ever are struggling to afford items like food, appliances and furniture, and are at particular risk when hit with emergencies or unexpected costs. Being excluded from affordable credit means they can face higher costs, and challenges to family wellbeing, mental and physical health.

Fair for You provides an ethical alternative

Fair for You was established in 2015 to provide an ethical alternative to high-cost lenders. Fair for You provides customers with fair credit based on assessing whether they can actually afford to repay the loan, rather than relying solely on credit scores. It partners with retailers including Iceland, Whirlpool, Dunelm and Argos, meaning that items are delivered directly to customers, or that loans are provided on a pre-paid shopping card to be used only at those retailers. A small fee is paid by retailers, allowing Fair for You to keep the cost of credit far lower than many competitors.

A £350 loan from Fair for You, paid back in weekly instalments over six months, would incur £48 in interest (as of June 2024). By comparison, someone taking out the same loan from other providers could pay several times as much interest. Interest (with fees and charges) could be up to and including £350 (which would be the legal maximum).

Social investment enables more loans

Through taking on social investment, Fair for You is able to make more loans, supporting more people with low incomes or experiencing difficult circumstances to access essential white goods, furniture and other household items.

JRF’s investment: £500,000 perpetual bond completed in 2020.

Emma Goodwin, Deputy Chief Executive of Fair for You said:

"Being excluded from mainstream credit can leave people powerless to respond to cost of living challenges and other financial struggles. JRF's investment has enabled Fair for You to improve the equity of the lending landscape, giving people a new and better option rather than being forced to go without essential items, or wondering whether to take out a more expensive loan."

Discover more about social investment at JRF.