The narrative advanced by many doorstep loan lenders is that your credit score doesn’t tell your story. They advance a theory that no person should be denied access to credit facilities because of their credit score status. While high street banks might find this a bit offensive, the truth of the matter is that this very approach has won doorstep loan lenders in the UK a loyal following. These are people who after years of being looked down upon have found something to be optimistic about. They no longer have to worry about the outcome whenever they are applying for a doorstep loan.
I, for one, used to be a doubting Thomas when it came to doorstep loans. I used to call its bluff until one of my erstwhile cousins who had been in a wheelchair for many years became a beneficiary. For as long as I could remember, doing the normal things that most of us are entitled to was a tall order for him. He could barely enjoy outdoor games, go for picnics or even had the pleasure of going to the woods as and when he liked. In other words, he was a stay at home dad who had been laid off as a result of an accident at work.
Entitled to a fixed sum of money monthly, sometimes the going got tough and the need for additional cash unavoidable. However, getting cash advances from mainstream lenders while immobile proved a tad difficult. Most lenders were not willing to come to his home to process the loan and that is when he discovered doorstep loans or what is commonly known as door to door loans. I still remember that chilly evening when he called me telling me that he was considering trying out doorstep loans to meet an immediate financial need.
Considering the fact that at the time I didn’t know any person who had taken out a doorstep loan, I was a bit sceptical and discouraged him. “If you don’t want me to try, then get me 1000 pounds tomorrow,” he retorted. Unfortunately, I didn’t have that kind of money at the time and therefore didn’t have a choice but to endorse his decision. He contacted one of the UK doorstep lenders and surprisingly, a local agent came right to his home, explained the loan packages, the APR applicable and processed the loan within a couple of hours!
I was surprised at how efficient the whole process was! Since then, I have become a big advocator of doorstep loans though I find the rather high-interest rates a bit disturbing.
By now, you probably are familiar with different types of loan products such as logbook loans or payday loans that are popular with bad credit individuals. These loan products have since the time of their unveiling in the UK market provided a reprieve to those with a history of arrears, CCJ’s or defaults. A loan product that has largely been given little publicity and which is also crucial to individuals who are disabled or simply on benefits is doorstep loans. As the name implies, this is a loan product that is delivered to the doorstep of an applicant.
Unlike other loan products, an agent of a lender will come to your home, explain to you the different kinds of loan packages under doorstep loans, process the loan application and ultimately deliver the money right at your doorstep. Of course, this aspect of doorstep loans is what has blown its popularity through the roof in the UK. With that said, how can you go about applying for a doorstep loan?
Of course, applying for a doorstep loan is not something you just wake up one day and decide to do. A lot of thinking and research goes into it. Considering that different lenders offer different rates and packages, you can never make your decision on a whim.
Research and make comparisons
The loan market is not a monopoly market where just one lender offers doorstep loans. On the contrary, there are dozens of doorstep loan providers in the UK. As such, prior to making the ultimate decision on which lender to do business with, emphasis should be on research and making comparisons. With the advent of the internet, it doesn’t matter whether you are disabled and immobile. All you need to do is simply go online and do a search of the top doorstep loan lenders within your locality. If you feel as if the research process is strenuous and demanding, you can make use of comparison sites that put together all the details you need in one place.
Make a shortlist
In a pool of over 10 lenders, make a short list of at least 3 based on the APR rates, credibility and reputation of the lender, diversity of packages and so on and so forth. After making a shortlist you should make appointments with each and find out what it is that makes each lender unique.
When the agent of your chosen lender arrives at your doorstep, your next duty is not to nod on everything they say. Nothing is cast in stone. Try and haggle for a better deal as opposed to accepting the terms set forth. You will be surprised to learn just how much of a better deal you can get through haggling.
Acquaint yourself with the fine print prior to signing the contract
Do not be in a rush to append your signature on the dotted line. Reading the fine print could actually save you a lot of heartache a few weeks down the line when you out of the blue find out that the cost of your doorstep loan is much higher than what you were made to believe.
In a nutshell, you should never rush the doorstep loan application process however desperate you might be. Just take a little time to do due diligence and you won’t be sorry in the long run.
In all honesty, applying for loans for those with a less than stellar credit has become increasingly easy in recent years. With loan products such as payday loans, logbook loans and doorstep loans, those who are unemployed, on benefit and with a poor credit rating can still get access to credit facilities just as fast as those with an excellent credit history. It is a fact of life that a financial crisis can occur at any time. When it does, it won’t matter whether you are unemployed or on benefit. You will need to find a way through which you can attend to your financial crisis.
As an unemployed low-income earner, getting approved from a high street bank might prove a tall order. After all, high street banks require applicants to have a healthy regular income monthly, an above average credit score, not to mention tonnes of paperwork during the application process. This of course, is a losing battle for most people on benefits, the disabled or the unemployed. Luckily, you don’t have to worry on end simply because you are on benefits and in need of urgent financial need. Doorstep loans have indeed changed the lives of UK individuals on benefit and in need of urgent financial need.
Doorstep loans, also commonly known as door to door loans refer to a special loan facility for people on benefit where the application is done from the comfort of their homes. Yes, you heard me right – you don’t have to leave the confines of your home to apply for a doorstep loan. A local agent of your lender will visit you at home, explain to you the different loan packages and complete the loan applications at home. What’s more, the money is also delivered right at your doorstep!
What about repayment? Well, the beauty of doorstep loans is that you don’t need to leave your house to make repayments when due. A local agent attached to you will collect repayments right from your home. If you are concerned about not keeping tabs on repayment, most lenders give you a book where you record payments you make for the purposes of transparency.
Who are doorstep loans most suitable for?
No doubt, this is a question most people ask prior to taking out a doorstep loan. First and foremost, it is imperative to note that individuals who are on benefit and essentially receive a fixed income monthly are the most ideal to apply for a doorstep loan. While the fixed income might be sufficient to meet their day to day expenses, there might be times when a large financial burden crops up. What do they do in such a circumstance? A doorstep loan would indeed be the natural choice as compared to other loan products.
Secondly, individuals with a poor credit rating will indeed find homage in doorstep loans. Unlike mainstream loans, doorstep loans do not put great emphasis on a person’s credit score. In other words, you don’t need to have a stellar credit rating before you can be approved for a doorstep loan.
Last but not least, if you are disabled or simply have trouble leaving your home to apply for a loan, doorstep loans are your best bet. Doorstep loan agents usually visit applicants at home and finalise the whole process without the borrower leaving the safety of their homes.
What is the eligibility for doorstep loans?
As is with any other loan product, there are a number of requirements you need to meet. For one, you need to show proof that you are a bonafide UK citizen who has attained the age of 18 years. You also need to provide the lender with proof that you are capable of repaying the loan as and when it is due. There you have it! You don’t need to worry about guarantors, collateral or go through a strenuous application process as is the norm with conventional lenders!