Doorstep Loans: Enjoying extra convenience for your financing needs
If you find yourself in need of additional cash to tide you over or to cover a certain urgent expense that you have not budgeted for, the question that is perhaps occupying your mind is where should you get the needed money? If you can’t obtain it from a family or friend, then taking out a loan is something that you can look into. But before you jump into payday loans or any kind of short-term loan, consider a convenient alternative in the form of doorstep loans. Also know as home collected credit, doorstep loans could be the option you need to help you out of a cash crunch.
Doorstep loans in the UK
Doorstep loans are small cash loans in the UK that can help you secure convenient funding of up to £1,000. The financial products can be borrowed for several months with weekly repayments collected by a friendly agent who works on a face-to-face basis. They are offered by reputable companies like Provident Personal Credit and alternative lenders online. Doorstep loan lenders have been providing small cash loan services for decades, serving literally millions of people in the UK since they first made their way into the loan market.
How to get a Doorstep Loan
The great thing about home collected loans is that you get to deal with real people and people that you can genuinely trust. While you will be conducting an initial application online, afterwards you will be dealing with real people who will spend the needed time to find out about your needs and present circumstances. Once you have completed your application online, the lender will arrange a schedule that is ideal to you for an agent to visit you in your home to go through the paperwork. If you agree with the terms and conditions of your loan deal, you will have your cash handed to you right at the very moment. You will need to make weekly payments in the terms you have agreed. The agent will visit you at a convenient time to collect the payment – that’s why doorstep loans are sometimes called home collected credit.
Why doorstep loans are right for you
The loans are small, unsecured cash loans set up in a face to face basis with a friendly local agent working for your lender. You might want to consider the financial products because:
- Your credit history is poor and you have been denied of a loan by traditional lenders like banks and credit unions.
- You find banks and other traditional lenders intimidating and would want to borrow on a face to face basis with a person who understands your present situation.
- You prefer the convenience of completing a loan transaction right at the very comfort and privacy of your own home.
- You don’t have a bank account and would prefer to have your loan delivered in cash at your home.
How do doorstep loans work?
If you are considering taking out a doorstep loan in the UK, there are many reputable lenders that you can turn to so you can enjoy convenient financing right at your home. Here’s how the loan works in helping you obtain a short-term cash loan that is arranged right at your home:
- Simply apply online on a potential lender’s website and afterwards the lender will make an instant evaluation on your application.
- If the lender sees that you meet the basic eligibility requirements, they will call you in the same day to arrange an agent/team member to visit you at your home.
- The terms and conditions of your loan will be thoroughly explained to you by the agent. If you agree in all of them, simply sign the loan contract and the money that you requested will be handed to you right at the very moment.
- The same agent who arranged the loan at your home will return every week to collect the repayments. Other lender’s allow a fortnightly home collection system.
- Payments are normally fixed with nothing hidden, and usually no late payment fees.
Features of Doorstep loans
People in the UK normally use doorstep loans to cover emergency expenses – e.g. the car suddenly breaks down or your child gets rushed to the hospital. Majority of people do not have any form of savings to rely on and only about half of the people who use doorstep loans have full time or part time jobs. For this reason, lenders in the UK will cater loan applications from borrowers who are unemployed but enjoy some form of income – e.g. those who are living on benefits like government pensions. Every applicant is evaluated on a case by case basis with strong emphasis on source of income and affordability.
If you are considering taking out doorstep loans in the UK, here are some of the features of the financial products that you ought to know:
- Borrow £100 to £1000 (up to £2500 for existing customers) subject to affordability.
- Low manageable weekly repayments
- No late payment fees
- Choose from 13, 26, 52 week repayment terms (existing customers can repay over 104 weeks for loans of £500+)
- Personal payment book so you can track your repayments.
- Representative 535.3% APR
Advantages of doorstep loans
Doorstep loans are different from other forms of financing in more ways than one. Simply put, they are convenient forms of financing that come to you rather than you coming to the them. Here are some of the advantages of the type of loans that you can enjoy once you decide to take them out:
1.) The entire process is completed at the very comfort of your home
As its name suggests, the primary advantage with doorstep loan is the fact that you never have to leave the confines of your own home to secure a short-term cash loan and even pay it back. Not a single step in the process will require you to go out and drive somewhere in a local branch or office. This is extremely important for several reasons such as:
- You don’t have the luxury of time to leave your home
- You have movement problems or have a disability
- You might be an elderly citizen
- You may not be able to procure childcare
All of the reasons mentioned above are perfectly legit which makes traditional loans from brick and mortar financing institutions restrictive to certain groups of people especially those who are elderly and have disabilities.
2.) You can get the money that you requested for without delay
The main problem with traditional bank loans is that it can take a lot of time to complete your loan transaction. From making an application, filling out the necessary paperwork, to finally getting the money that you requested, it can take forever. When your short of cash and an emergency expense suddenly pops out of the blue, you don’t have the luxury of time to wait around to process your loan, your payments, and all the inefficient steps that comes along with it.
Doorstep loans eliminate this problem by simplifying the whole process and making it as quick and easy as possible for you to enjoy the money that you need. There is no need to worry about your money coming in late as someone will be delivering the money right at your home in the same day you applied for it through same day doorstep loans.
3.) You receive your loan in cash
One of the reasons why it takes so long for traditional loans to get processed is because they are completed through bank deposits or transfers and such methods demand a lot of time. What’s more, when you withdraw the loan amount to your bank account, going back home can be a stressful trip knowing that you have plenty of money with you. Because the loan proceeds in a door step loan are handed ton you in cash, you can use it right away for whatever purpose you see fit.
2.) Doorstep Loans in the UK and Doorstep loans that provide Instant Funding
In the past, you will have to deal with the whims and fancies of banks, the prejudices of loan officers and the almost limitless demands of documents, paperwork, and signatures just to get a loan. But gone are those hectic days as this is the era of instant loans.
Short-term loans for £100 to £1000, don’t need complicated steps and transactions. In fact, you can even get doorstep loans with instant funding in the UK that can have your money ready for use in the same day you completed your application!
What’s more, there are plenty of reputable lenders online that can help you facilitate such a quick and convenient financial product. Of course, there are other options that you can consider to get same day funding such as payday loans and other loans online from alternative lenders. But if you opt with same day doorstep loans, you can have your cash delivered to your door at your address in less than an hour.
Eligibility for Same Day Doorstep Loans
To become eligible for an instant doorstep loan in the UK, you need to be a citizen or a legal immigrant. You also need to be:
- At least 18 years of age
- Have a bank account in your own name
- Employed or must be able to provide proof of income
Normally, your earnings must be a thousand or more for every month. Your proof of income will verify you ability to make the necessary payments for your loan. If your need is just small, say just a hundred pounds, you can still get approved even if you have a lower income. All in all, the eligibility requirements that you need meet for a doorstep loan is pretty basic and there is a good chance that you will get approved even if you have bad credit as long as you have a reliable source of income.
Important things to consider
Before you apply for the financial products, be sure that you evaluate your needs first to help you land the best deal possible. Determine the amount that you need to borrow – it must be something that you can genuinely afford to pay back – and choose a company that provides competitive rates and flexible payment terms for same day financing. You may repay the loan in a month or you can work out longer instalments with the lender and this is something that you should look into.
Doorstep loans from a direct lender
To enjoy the full benefits of doorstep loans in the UK, you need the find the right direct lender who will walk you through the whole process until you have paid back your loan in full. You will find a wide array of lenders and companies providing superb deals and services for home credit loans. The most important thing to do is to find the best one and you can go about it by:
- Go online and do some research. It will aid you a lot in obtaining all the crucial information needed to find the best doorstep loans from a direct lender.
- Determine how they offer their services and loan deals and on the manner in which they actually help their clients.
- Make a list of the companies that provide the most competitive terms and impressive customer service and find out which one is best suited to your needs and present circumstances.
Following these three crucial steps will help you a lot in landing the right direct lender. You might also want to rely on honest reviews from previous clients since they have firsthand experience on the kind of service that the lender provides. The statements made from past clients in review sites will help you a lot in determining if a certain lender of doorstep loans will be able to help you out.
Options of other Lenders
Another great way to help you land the best direct lender for doorstep loans is through referrals. Because this type of financial product is widely used by people who are employed and rely on their monthly payslips, your co-workers might have already found the right lender themselves. With that being said, why not ask them for any referrals and recommendations? It could make things a whole lot quicker and easier for you. They might be able to share with you some companies that you can consider in getting the lender that is perfectly suited to your needs and present circumstances.
4.) Other forms of Financing you can consider
While doorstep loans are fantastic credit products that you can consider especially if you have poor credit and don’t want to leave the comfort and safety of your own home when taking out a loan, there are also other options that you might want to consider to satisfy your need for funding. Here are some of the most popular options that you can enjoy in the UK today:
1.) Loans with a guarantor – The financial products allow you to access large amounts of loans anywhere from £1,000 to as much as £15,000 with flexible payment terms and competitive rates that would otherwise be unavailable to you if you have a poor credit history or a none-existent one. This is because you will need to provide a guarantor who will practically guarantee that the loan’s repayments will be made. The guarantor will agree to cover the repayments if you are unable to, lowering the risk involved in your loan application and consequently allowing you to enjoy a better loan deal.
2.) Bad Credit Loans – The loans are designed especially for borrowers with bad credit scores. The loans are normally offered online by alternative lenders who are ready to cater borrowers who have been rejected by banks and other traditional lenders because of their inadequate credit ratings. Some of the most popular bad credit loan options, aside from doorstep loans, that you can look into in the UK today include:
- Logbook loans
- Payday loans
- Short-term cash loans
- Instalment loans
Bear in mind however, that the interest rates for bad credit loans are normally higher than other types of loans as this is one of the means in which you can compensate the lender for taking up the risk involved in your credit history.
3.) No guarantor loans – The loans allow you to borrow large amounts of credit for some of the lowest interest rates in the industry without offering any form of guarantor. Normally, no guarantor loans are:
- Secured loans. You will need to offer some form of collateral to obtain loan amounts that are enough to cover major expenses like purchasing a new home.
- Unsecured loans. You can access large loans without any form of security. You will need to have a stellar credit rating to get approved however.
You can do some research on the alternative options mentioned above so you will know which type of loan is ideal to your needs and present circumstances.