Loans To Your Door

How To Get A Doorstep Loan Without Leaving Your Home

Loans To Your DoorBorrowing from a mainstream “high street” financial institution is getting harder and harder these days – especially if you’re one of the millions who suffer from a less than perfect credit history. Banks aren’t prepared, or in a position to take too much of a risk and hence only appear interested in those with a proven and unblemished credit history or in those who are looking to borrow against the security of a home or property.

Then there’s those who maybe work part-time, those retired or on benefits, the increasing population who are self employed and those who do not have a full time or fixed income … once again, the traditional institutions are reluctant to consider credit applications … enter the Doorstep Loan – learn more here.

A doorstep loan also goes by the name of home credit and, as the name suggests, is a traditional, some would say old-fashioned, loan that is organised face to face with a local agent in comfort of your own home. This same agent will then deliver the loan to your door and then collect the regular repayments each week.

Doorstep loans fill a void left by the banks – they are targeted towards the category of borrowers not able to obtain credit from the main institutions – bad credit history, CCJs, defaults, arrears, working full time, part time, retired, on benefits, unemployed, students, homeowners, tenants … the list goes on …. applications from all will be considered equally. What is most important is that the loan is affordable moving forward what is not so important is what has happened in the past.

  

So, how can doorstep loans be so flexible when bank loans cannot? Well, it’s all about risk – here’s what we mean.  if you’re  looking for thousands of pounds you’re not going to get this sort of sum with a doorstep loan – they are small cash loans typically of a maximum of £500 or so, although there are a number of lenders who are increasing the maximum loan to around £1000. A small loan of this sort of sizes minimises risk to lender.

On top of this the repayments are divided up into much smaller and highly affordable instalments – a doorstep loan can usually be repaid over a maximum term of a year and rather than the monthly direct debit  service provided by the banks the repayments are split down into weekly amounts which are then collected each week in cash. In effect this means that a loan of say £300 can be repaid at the rate of just over £10 per week (completely depending on interest rates) which doesn’t sound much at all. These small, manageable repayments and the fact that a real person will collect them each week again significantly reduces risk.

Obviously, because of the flexible nature of these loans and the cost of the local agents the doorstep lender will usually charge quite a high interest rate for such a service … reducing the risk even more. Keep a close eye on these interest rates as they can be pretty high. There is an organisation set up for just this – lenderscompared.org.uk offers a quick and easy way to see if you can save money on your next cash loan and allows you to compare all home collected loans available in your area.

The application process is simple, select one of the many doorstep loans providers and apply online. It’s just a few simple, basic questions, usually just name, address, loan required, contact details etc after which you will be contacted by the lenders local agent who will arrange a convenient time to meet, discuss and agree the application at your own home. It’s during this meeting that the loan will be explained, quotations provided and terms agreed before you loan will be delivered right to your door, often in cash or sometimes pre-loaded onto a debit card or even in vouchers … whichever way suits.

The loans itself can be used for any purpose – it’s a loan provided to the borrower to use as they wish without restrictions. A holiday, home improvements, school trip, shopping, car repairs, household bills, Christmas presents … any reason at all.

As explained the repayments are split up into small, manageable instalments and spread over a term to suit the borrower. The agent will agree a convenient day and time to call round each week to collect these repayments which can be made in cash if preferred.

And that’s pretty much what doorstep loans are, how they work and why this home credit loans service is growing in popularity – accessible, simple, flexible and affordable loans – even in these days of economic turmoil.

Did you know you can also get doorstep loans for unemployed people – find out more at MoneyUnmuddled