Introduction To Doorstep Loans

What Are Doorstep Loans

Doorstep LoansDoorstep loans are often favoured by those with a bad credit history and who therefore find it difficult to obtain finance from the high street banks and financial institutions. The flexible lending criteria also make these door to door loans highly attractive to those with lower, or irregular, income. More details here.

Doorstep loans are basically small cash loans that are usually subject to a pretty high interest rate. The loans themselves are provided by a lenders local agent who will conduct all aspects of the transaction in the applicants home – the initial application process, delivering the actual loan and collecting the repayments.

The repayments themselves are split into weekly amounts and spread over an agreed term – often to a maximum of 52 weeks.

High interest rate or not, the fact that these are just small cash loans, often up to a maximum of £500 or so, coupled with the fact that repayments can be split into weekly amounts and spread over a significant number of weeks means that these loans are affordable to the majority of individuals. Add to this the fact that the repayments are collected in person and the actual risk to the doorstep lender is minimised.

These days all lenders have a legal duty to lend responsibly and not to grant credit to those who can’t afford the repayments but, in most cases, a doorstep loan is affordable which is why it’s growing in popularity.


Whilst previous credit problems won’t necessarily be completely ignored the doorstep lender will focus on ability to repay moving forward and, because of the structure of these loans, ability to repay will often only involve a relatively small income and hence applicants who are self employed, working part time, retired or even on benefits will usually be considered to the same degree as those in full time, regular employment.

It’s this flexible approach in terms of lending criteria that makes the doorstep loan as popular as it is today.

Doorstep Loans And Your Safety

Legislation governing doorstep lending has been tightened over the years but it is often still associated with illegal money lending. For anyone considering such a loan it’s vital that they ensure that they only deal with a licensed doorstep lender. Every lender will have a Consumer Credit License and will hence appear on the Consumer Credit Register – credentials can be checked very quickly and simply at

If a lender doesn’t appear on the register they can be reported as a potential loan shark at – don’t worry, it’s completely safe and anonymous.

Most reputable national lenders will also be members of the Consumer Credit Association and abide by their strict standards of quality and service – more information at

Finally, you are able to compare the cost of home credit, doorstep loans at Lenders Compared: this will ensure you are dealing with a quality lender and getting the best value for money.

Doorstep loans will always have their place in society, especially in such difficult economic times as these. Whilst interest rates will be high the loans themselves will be affordable and, follow the guidelines and they represent a safe way of lending too.

If you’re now looking for more information about doorstep loans bad credit why not pay a visit to

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