Like it or not, every UK citizen has a credit file that records all their past credit transactions. This file is like a mirror and shows the reality to lenders. However, sometimes the facts may prompt high-street lenders to refuse your personal loan application. Thankfully, there are many lenders in the UK who provide doorstep loans for bad credit. So, even if you have a poor credit score, you’ll just have to prove your affordability to qualify for one of the best bad credit loan deals. But, what exactly are bad credit loans and do they really exist?
Bad Credit Loans
Although you hear the term “bad credit loans” in the loan market, there’s no financial product with this name. It is simply a term that loans that people with bad credit search for have. Borrowers know how hard it can be to get approval for a loan. That’s because potential lenders request the major UK credit agencies for access to your credit file. Then, they assess whether you’re likely to pay back your loan based on how you managed credit in the past. Doorstep loans for bad credit are personal loans available for bad credit. There’s hardly ever a credit check and even if there is, it’s only for keeping things legal.
Doorstep Loans for Bad Credit
Doorstep loans for bad credit are those that you can get quickly and easily, sitting in the comfort of your own home. No more visiting lenders’ offices or submitting tens of online applications! They’re unsecured, short-term personal loans where each step- from application to receiving of funds to loan repayment happens right at your doorstep. There’s a reason they’re doorstep loans as they literally happen at the door of your house and not somewhere up the road. Doorstep loans for bad credit guarantee all the comfort and convenience you could ever wish for!
How Do Doorstep Loans For Bad Credit Work?
All throughout the stages of receiving and repaying doorstep loans for bad credit, you put in little effort and get money at your door. Let’s look at how doorstep loans for bad credit work:
- Online Application Anytime:
If you’re looking for personal loans, you can fill out an online application anytime on a lender’s website. Every doorstep loans for bad credit lender has an agent in your locality.
- Personal Interaction With Lender’s Agent:
After you submit an application, a self-employed agent appointed by the lender for your locality will come by your house. They’ll have a one-on-one interaction with the borrower and try to understand their financial situation. This agent will give any advice if required and will finalise the paperwork within a few minutes.
- Instant Loan Approval:
If everything like documents, affordability check, etc are in order, the agent will approve doorstep loans for bad credit then and there. They’ll usually pay cash upfront.
- Loan Repayments From Your Doorstep:
The greatest advantage with doorstep loans for bad credit is repayment is totally hassle-free. You don’t need to visit the lender’s office or understand complex online payment methods. During the term of the loan, you’ll be dealing with the same agent and not directly with the lender. This develops more personal understanding and familiarity and helps smoothen the doorstep loans for bad credit repayment process. Every week, you have to pay back a fixed amount of money when the lender turns up. Note that no agent or lender will require you to make lump sum payments on doorstep loans.
What Should I Keep In Mind While Choosing A Doorstep Loans For Bad Credit Lender?
There are numerous lenders in the UK market and not necessarily every one of them is genuine and good. Always be alert and choose a lender wisely. Keep these following things in mind:
- Check if the lender’s website has a proper UK address and phone number.
- Make sure the lender is FCA-authorised.
- Read up what previous customers are saying about their customer service
- Look whether a local agent is available
- Only choose lenders that provide customized deals and don’t settle for something which doesn’t suit you
- Prefer lenders who don’t charge additional fees and hidden charges
Pros of Doorstep Loans For Bad Credit
Doorstep loans for bad credit have noticeably more pros than cons.
- Quick Approval:
The approval happens face-to-face in a matter of minutes. The agent visits your residence with the loan amount and gives it to you immediately upon approval. Thus, you don’t need to wait for money to be credited to your bank account.
- No Necessity of Bank Account:
As we saw above, doorstep loans for bad credit are also known as cash loans. So, if you’ve had difficulty opening a bank account or simply want to keep money in cash, these loans are the best option. There’s absolutely no need of a current account.
- Personal Attention:
As borrowers with a single agent throughout, agents become a familiar face and develop understanding of financial situations. For them, you’re not another nameless number flashing on their mobile screen. You can schedule meeting at a convenient time in the comfort of your home to address queries and doubts regarding your loan.
- No Credit Footprint:
Doorstep loans for bad credit don’t find any record on your credit file. Lenders usually don’t take the trouble of disclosing your transaction to credit agencies as they’re cash loans. You shouldn’t worry about a missed payment affecting your credit score. However, loan repayments should be made seriously, otherwise, serious consequences like CCJs might ensue.
- Available for Bad Credit:
Having a low credit score might make it difficult to get loans from elsewhere. So, why not prefer doorstep loans for bad credit from a lender like us?
- Flexibility of Repayments:
Not everybody can afford to make weekly loan repayments. The agent will come by only according to the pre-agreed term, e.g. fortnightly or monthly.
Cons of Doorstep Loans For Bad Credit
The downsides of doorstep loans for bad credit are:
- High Cost of Borrowing:
As these are unsecured and short-term type of loans, the APRs tend to be quite high as compared to other types of lending.
- Low Principal:
Doorstep loans for bad credit are an immediate quick-fix for cash woes. They aren’t good as a long term financial product. Moreover, the maximum borrowing limit with most lenders is £1,000.
Doorstep loans should only be used as a last resort. If you’re looking for a long-term personal loan, check out our financial products!
You could apply here and get an instant loan!