What are Doorstep Loans?

Definition of a Doorstep Loan

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.

How Do They Work?

The process of enquiring about a doorstep loan in Snizort and Trotternish Uig to receiving the money and then paying it off is simple:

1. An individual will reach out to a credit lender to request more information about the loans they offer.
2. A face-to-face meeting is arranged with an agent from the company, who will provide in-depth information about the loan and answer any questions the individual has.
3. An amount is agreed, along with a payment plan to pay off the loan.
4. The agent will deliver the loan directly to the individual, in the form of a cash or cheque.
5. The agent will then make scheduled visits to the individual to collect the repayments, including the interest.

Here's an example of how the interest of a doorstep loan is calculated:

Interest Rate (APR)	305.9%
Loan Sum	£400
Duration	90 days
Total Interest	£161.92
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.

Who is Applicable to Receive Doorstep Loans?

The Criteria to Apply

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.

• You don't need a high credit rating
• You don't need to be a homeowner
• You don't need to have a bank account
• You don't need to be in full-time employment

Who Can Benefit the Most?

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:

• Single parents have to run their household, look after their children and hold down a job - all at the same time. A doorstep loan enables them to quickly access a financial boost, without using up their valuable time.
• For those who find themselves unemployed , doorstep loans give them access to a small amount of money to make ends meet, pay bills and cover the essential expenditure in day-to-day life.
• Applying for a doorstep loan is also a viable option for individuals with a bad credit score. Although credit lenders do take an individual's score into consideration, it doesn't play a role in their decision as to whether to lend the money or not.
• Doorstep loans can be an important source of cash for those with disabilities. It enables them to access funds, without the hassle of leaving their home unnecessarily.

How Do I Apply for One?

There are a several ways in which you can apply for a doorstep loan in Snizort and Trotternish Uig, 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.

How to Apply Online

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.

Find Your Local Credit Lender in Snizort and Trotternish Uig

There are a variety of credit lenders in and around the Snizort and Trotternish Uig area. We would recommend obtaining quotes from our two partners, who operate a reliable service across the UK:

• Morses Club
• Provident Loans

Click here to search for credit lenders in Snizort and Trotternish Uig. Simply enter in Snizort and Trotternish Uig or your postcode, and a list of your nearest credit lenders will appear in the search results.

What are the Benefits of Doorstep Loans?

Agreed Payback Schedule

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.

Personal Service

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.

Credit Rating

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.

Upfront Money

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.

No Credit Checks

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.

Quick Turnaround Time

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.

Convenient for You

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 Snizort and Trotternish Uig to withdraw money from the bank or visit their offices to settle the payments.

What Should I Look Out for When Applying?

The Financial Conduct Authority

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

The Consumer Credit Association

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.

What are the Risks?

Interest Rates

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.

Pressure Sales

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.

Unreasonable Terms

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.

Things to Remember

• When looking for the right doorstep loan, rather than think 'Which loan is best?', you should ask yourself: 'Which is the best loan for me?'
• Don't just go with the first credit lender you come across. Compare lenders who operate in and around Snizort and Trotternish Uig, and go with the one that's right for you.
• The interest for doorstep loans is high, so you must truly consider whether you are financially able to deal with the repayments.
• You have every right to ask for proof that they are authorised by the FCA and to check that they are compliant with the CCA.
• Citizens Advice also have some great resources about different types of borrowing, so browse their site for further information.
• The more you borrow, the higher the interest will be and the more you will have to pay back. It's worth evaluating the exact amount of money you need, and not requesting a higher loan amount.
• Doorstep loans are designed to give small cash injections; most lenders will only offer a maximum of £2,500. If you need to access more, you should consider other avenues.
• If you are looking to improve your credit rating, doorstep loans aren't right for you. They do not have any implications, positive or negative, on your credit score.

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.