What are Doorstep Loans?
If you are looking to raise a small cash loan in a hurry then doorstep loans are a great, for first time doorstep loans the initial limit is up to £500 some lenders have raised this to £750, but you can often borrow as little as £50, your doorstep loan repayments are collected weekly and as the name “doorstep” suggests they are collected by agents of the doorstep loan companies from your home.
Repayment periods of doorstep loans vary dependent on the loan amount, small loans can be repaid over a few weeks but larger one’s can be spread over months to keep the weekly repaymnets lower.
Am I eligable for a doorstep loan?
Doorstep loan lenders customer criteria is different from that of high street loan compaines, because the doorstep loan is collected weekly from your home the doorstep lenders are less strict on who the will lend to and generally try to accomodate everyone, as such ccj’s or poor past credit history are not normally a problem with a doorstep loan.
Typical Requirements for a Doorstep Loan
- You are a homeowner or Tenant
- You are over the age of 21
- You are employed or living with an employed partner
- You have a landline or connected mobile phone
- You are not currently bankrupt or if in Scotland sequestrated
Providing you can meet the above your loan is usually approved in principle very quickly and the cash in your hand within 48hours. The doorstep loan company agents will usually help with the simple forms and aim to get the cash to you as quickly as possible.
What’s it going to cost me?
Because the doorstep loan repayment period is so short the APR% or interest rate on the loan is higher than your typical high street bank. Doorstep loans are aimed at customers with a below average credit rating, and only basic questions and criteria are required to secure the loan, although the interest rates are high because your repayment period is short the amount of interest you pay back on top of the original loan is relatively small, for example a cash loan of £500 repaid at £17 weekly for 50 weeks with a typical APR of 246% the total amount repaid would be £884. As with any loan always check what you will have to pay back and make sure your comfortable with the repayment amounts and clear about how much you will have to pay back in total.
What purpose can I use the loan for?
Pretty much yopu can take out a doorstep loan for any purpose, holidays, car, christmas gifts, garden furniture, basically there are no real restrictions for the purpose of a doorstep loan, one of the benefits of a doorstep loan is the speed of acceptance and the flexibility of what you can spend your doorstep loan on. And because the weekly repayments are usually a low managable amount it is less likely doorstep loans will cause you sleepless nights.