Doorstep loans, also commonly known as home credit, are a personal loan. They allow you to borrow small sums of money, which is delivered directly to your door. You are then required to make repayments back to the credit lender on a weekly basis, via home calls from the company.
Doorstep loans are often used as a quick cash boost in an urgent situation, or to accommodate one-off expenditures such as holidays. Unlike other kinds of loans, it is firmly the decision of the borrower as to how and when they spend the money. What matters most to the credit lender is that they are paid back in full.
The process of enquiring about a doorstep loan in Merry Hill Dudley to receiving the money and then paying it off is simple:
Here's an example of how the interest of a doorstep loan is calculated:
|Interest Rate (APR)||305.9%|
|Repayment Plan||Three monthly installments of £187.31|
|Total Amount to Pay||£561.92|
Please note that this is only an example. The interest rate and repayment plan will vary between credit lenders. It is therefore in your best interest to clarify the above before you choose which loan to go with.
One reason doorstep loans are so popular is that they are a realistic solution for everyone. Without the restrictions of the banks and other finance providers, doorstep loans are relatively easy to access and do not require a long list of specifications from the recipient.
Although everyone can take advantage of doorstep loans, there are some stand out members of society who can feel the most benefit from accessing these:
There are a several ways in which you can apply for a doorstep loan in Merry Hill Dudley, all of which are easy to do. We've highlighted the two most straightforward ways below, and have explained what you need to do for each.
Most credit lenders will have the option to apply for a doorstep loan online. This will usually be done using a short form that requires top level information from you. On completion and submission of the form, you should expect to receive a call from the lender. They'll introduce themselves properly, request some additional information from you and book in your first face-to-face meeting.
There are a variety of credit lenders in and around the Merry Hill Dudley area. We would recommend obtaining quotes from our two partners, who operate a reliable service across the UK:
Click here to search for credit lenders in Merry Hill Dudley. Simply enter in Merry Hill Dudley or your postcode, and a list of your nearest credit lenders will appear in the search results.
An agreed payback schedule will be agreed between you and the credit lender. You will be assigned agent from the company who will deal with all matters related to the loan. They will cover everything from your initial introduction to how their process works, to delivering you the money and the collection.
Unlike other forms of money lending, doorstep loans come with a personal service. As the provider comes to your door to give and receive the money, you don't have to deal with an online chatbot or back-and-forth calls. You'll have the opportunity to have face-to-face communication with a contact from the business, who should be able to help you at any point during the process.
This kind of loan does not have any implications on your credit rating. They are not reported to credit reference agencies, which means they will have no effect on your credit score. At the same time, it was worth noting that they will not improve your credit score rating either.
You don't need a bank account to receive the loan, as it is delivered directly to your front door. This means there is no delay in the money being sent over and you know exactly when you will receive the funds.
For those with a low credit score, getting a loan can be a difficult task. Doorstep loans remove this problem, as no credit checks are run on individuals looking to receive a loan. The loans are relatively small, and the interest is high, so the credit lender is confident that they will receive the loan back, as well as a nice profit boost on top.
With no paperwork, admin, back-and-forth or checks to run, the turnaround time from your initial enquiry to receiving your loan is quick. For this reason, doorstep loans are considered the ideal fix for an urgent cash flow boost. On top of this, their flexibility means there's no need to seek approval from the lender as to how you intend to use the money.
A wonderful benefit of doorstep loans is that you can apply, receive and repay them from the comfort of your home. Initial contact is made online or over the phone. There's no need to head to a branch of their business to request information. From this point on, one of their agent's will visit your home to agree the loan, give you the money and receive the repayments. You don't need to head into Merry Hill Dudley to withdraw money from the bank or visit their offices to settle the payments.
You should ensure that the credit lender you choose is authorised by the Financial Conduct Authority (FCA). Why? If not, the source of credit may be unreliable and the chances are you're dealing with a lean shark. Do not be afraid to ask for proof that they are an official credit lender. And if they're unable to provide it? Walk away.
You can check to see if a credit lender is authorised by the FCA on their website
Many doorstep loan providers are members of the Consumer Credit Association (CCA) and, as result, are required to follow the CCA Code of Practice. If you feel that the credit lender is not complying with this at any point during the process, you are completely in your right to report them to the CCA.
The interest rates associated with doorstep loans can be very high in comparison to other loan types. Before committing to taking out a loan, it is vital that you are confident you will be able to pay it back, with interest, over the agreed course of time. The implications of not doing so are serious, and may result in legal action being taken against you.
Some credit lenders have a reputation of pressuring people into taking loans they simply can't afford. If you decide to take on a loan, ensure that you are firmly in the driving seat at all times. Really consider the implications of the loan and do not borrow the money if you feel at all concerned about paying it back.
Although many credit lenders will ensure that you fully understand the terms of borrowing from them, some will let these slip through the net. The result of this being that you might receive some nasty, and seemingly unexpected, surprises during the process of repayment. Make sure the terms make sense and that they feel fair.
Doorstep loans are a fantastic way to access money quickly. They give individuals a much needed short-term solution to any financial problems they may be having. And, with no hidden fees and a clear repayment plan, it's easy to borrow and pay back the loan - as long as you stick to the agreed schedule.