Whether you have a good or not so good credit history, borrowing emergency funds in the UK is viable if you use a right channel to borrow loans. A lot of lenders and brokers are here in the market to help people struggling to maintain their credit score. One of the useful credit solutions for those struggling with bad credit score is a doorstep loan. Please note that timely repayment is necessarily required when you decide on opting for such short term loans.
Doorstep loans: Know the basics
Doorstep loans are short cash loans which are also termed as home collection loans or home credit loans. These work as short term personal cash loans which are delivered to you in the comfort of your home.
While the whole layout of doorstep cash loans is the comfort and ease of the borrower, these loans should always be used as emergency loans.
Doorstep Loans vs. Payday Loans
Another popular emergency loan is payday loan which is one of the quickest loans available. Doorstep loans are cash loans while the amount of the payday loans are directed to your bank account.
Despite the swiftness of disbursement, doorstep loans are preferred over payday loans. What makes doorstep loans a better credit solution is the ease of repayment it offers to the borrower. Throughout the loan process, a loan agent visits the borrower and hands over cash and collects the instalments from their home. In payday loans, as swift is the processing as is the repayment. The loan is advanced up to your next salary day and if you fail to repay, it can invite hefty late payment charges. On the other hand, you get the opportunity to choose your instalments and repayment durations in the doorstep loans.
Things to Consider
Anyone who needs emergency loans such as door to door loans for unemployed people or loans with bad credit should also consider following points before opting for these home cash loans.
- Less is more
A debt is a liability and should only be borrowed for essential expenses. Cash loans disbursed at your door interest charged is certainly higher than regular loans. Therefore short loans that you can manage and repay in the short run.
- Do proper mathematics
The loan agent would discuss your sources of income and current financial obligations. You should ensure that you do not commit what you cannot fulfil. Negotiate on interest rate and lock the instalments that you can repay conveniently. Generally, they would ask you to set repayment duration as weekly or fortnightly as per your convenience.
- Soft credit check loans without a guarantor
When you plan to apply for this loan, the loan agent would visit your home and discuss your loan profile. These loans are available for all kinds of credit score. You can request a soft credit check and save your credit score when struggling because of the bad score. If you have a willingness to repay the loan, you would not be denied a loan ever.