Doorstep Loans
Home Collected Loans To Your Door
Doorstep loans go under several different names – home collected, credit, home collection loans, doors to door loans etc – lots of different names for in effect the same product … small cash loans that are delivered to your door by a local agent (yes – a REAL person!) who will then also call round on a regular (often weekly) basis to collect the repayments.
They are designed as simple, straightforward cash loans with a personal touch … the way lending used to be.
The UK market for doorstep loans is significant with millions of people having already taken advantage of the availability of such finance. What makes them particularly attractive is the flexibility of the lending criteria with most doorstep lenders prepared to lend to a much wider range of people that the traditional mainstream institutions. In many cases doorstep loans are available to homeowners and tenants, those who work full time, part time, retired or, in some cases, even on benefits and that’s not all, a bad credit history, arrears, defaults, even CCJs will be considered too in line with the lenders policies of looking forward and at the borrower’s ability to comfortably repay moving into the future rather than judging on previous credit history.
The typical size of a doorstep loan is relatively small which is what keeps the eligibility criteria so open, most lenders advertise loans of up to a maximum of £500 or so. Repayment terms are flexible too and can be spread over a term to suit within the lenders limits which may typically be 12 months maximum. Because the doorstep loan repayments are usually collected weekly or fortnightly the physical cost of each instalment is low and manageable in cash terms … but always examine the overall cost of such finance as it has a reputation of being fairly high.
As mentioned, one aspect that makes doorstep loans so popular is the fact that you’re dealing with a real person and from the comfort and security of your own home – something that’s pretty unusual in these days of electronic and automated communication. Most reputable agents will be from the local community and are highly trained and hence able to answer all questions, deal with any problems and ensure that the loan is manageable and affordable. In these days of tight financial regulation no reputable lender will adopt hard sell tactics and, whilst agents may be able to earn commission it will often be based on repayments collected meaning it’s in everyone’s interests to make sure the loan is right for the applicant and ensure affordability.
Security and regulation has been tightened down on and now all doorstep lenders are required to be licensed by the Office Of Fair Trading. There is a Consumer Credit Association code of practice relating to home credit which you can view here: www.ccauk.org/information-for-consumers and you are also able to compare the price of home collected doorstep loans and other cash loans available in your area at www.lenderscompared.org.uk
As far as alternatives go whilst there are many other companies out there promoting small cash loans, many of which will be short term, payday type products, although the availability of instalment loans is increasing although these will be administered in a more traditional manor … online and monthly direct debits.