For consumers with bad credit, personal loan options are very limited. If you apply for a personal loan from major bank, you’ll be rejected in most cases than not. What do you do when you’re faced with a financial emergency and you have no other credit option? This is where products such as doorstep loans come handy.
What are doorstep loans?
Doorstep loans, as its name suggests, is a type of unsecured loan where you are not required for any asset or security to avail the product. Instead of going to the lender, the lender goes to you by sending over an agent or representative. This means that you’ll have a face-to-face meeting with said agent to set-up the loan application.
Who are doorstep loans for?
Because doorstep loans are unsecured, the eligibility criteria are pretty simple. As borrower, you’ll just need to be of legal age and a UK resident. You’ll have to provide basic documents as well including proof of identification, income and billing details.
With doorstep loans, there is no credit check requirement. This means that even borrowers with poor credit scores can avail the loan product. If you’ve been refused a loan by a major high street lender, you can resort to doorstep loan providers for some quick cash solution to your financial problems.
How much can you borrow?
Without a security involved, doorstep loans offer relatively smaller loan amounts. In most cases, you can borrow between £100 and £2,500. You can use the money any way you want since most lenders will not require you to disclose the reason for the loan. Ideally, you should use it for personal emergencies such as overdue rent or bill, car repair, medical expenses and other pressing financial needs.
How much is the interest rate?
The interest rate for doorstep loans varies from deal to deal. Rather than advertise the interest rate, lenders usually use the concept of representative APR (annual percentage rate). The APR represents the cost of your loan on annual basis, which is already inclusive of the interest rate, administrative charges and related fees.
On average, the representative APR for doorstep loans is 400%. In some cases, the APR can go up to 1,000% or more. As you can see, doorstep loans can be very expensive. As a borrower, it is your responsibility to take extra caution when applying for this type of loan. It’s highly recommended to only consider the loan when you’ve exhausted other cheaper credit options.
Where can you apply for a doorstep loan?
To offer convenience to borrowers, doorstep loan lenders have online websites where you can request for a free quote and complete an application. You’ll just have to fill out the online form. Once deemed eligible for the loan, your lender will send the agent to your address to finalize the loan application. If you want to know more about doorstep loan deals, simply head over to toplogbookloan.uk.