Doorstep loans, also known as home collected credit are cash loans delivered to your doorstep. They are one of the few lender types that pay your loan in cash and not into your bank account. Subsequently, a doorstep loan is a popular choice amongst consumers who don’t have a bank account. You can compare doorstep loans available in your area using the table above. But how can you get doorstep loans with bad credit?
How do doorstep loans work?
A local representative of the lender visits your home to assess your application. If approved the representative delivers the cash to your home. This agent is your point of contact throughout your doorstep loan period and will collect your repayments.
How often do I have to make repayments?
The majority of lenders will collect repayments on a weekly basis. This will be confirmed by your representatives prior to entering an agreement.
How long will it take to get the money?
The lender arranges your doorstep loan after an initial online or telephone enquiry and then followed up by a home interview with one of the company’s representatives. They will take some details from you and assess whether you’ll be able to repay the doorstep loan. From initial enquiry to payout, turnaround is normally 3-5 working days.
Will I be declined if I have a bad credit history?
Not necessarily. Your application will be assessed by your dedicated representative and a decision will be based on your situation and current circumstances.
Most UK doorstep lenders will not report your repayment history back to a credit reference agency. That means this product is not a credit builder – so if you’ve got a bad credit profile and you’re looking to take out a small amount of credit to rebuild your credit rating, this type of borrowing is not going to help you. If you have a good credit rating you’re also on the wrong page as you’ll be able to access APR’s of less than 10% by applying for either a bank or supermarket loan.
Final Word
Warning – doorstep lenders offer high cost credit and provide what the Choose Wisely team have dubbed a loan of last resort. If you have poor credit and are looking for a personal loan, in the majority of cases rather than opting for a doorstep loan you’d be better off getting in touch with us today.
