What You Need to Know about Doorstep Loans

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


How to Improve Your Poor Credit Score

A poor credit rating is not just bad because it taints your creditworthiness but because it can affect your personal loan, mobile phone and other financial applications. Because of your poor credit score, you’ll likely get rejected for your application. This is why it’s better to face the music as soon as possible so you can work on improving your credit rating.

If you’re ready to make changes and you’re committed to improving your credit score, here are some things you can do:
Check your credit files
Before anything else, you need to get a free credit check report so you can check your credit files for errors or any discrepancy. It rarely happens but it’s always better to be sure than sorry. If you spot any error, report it immediately to respective credit agencies to have it fixed. A fixed error can do wonders to your credit rating fast.

Start paying your bills on time

Your credit score is 30% your payment history. When you’ve missed payments for mortgage, credit cards or personal loans, these will be recorded on your credit history. The hits can significantly affect your credit score, which is why it’s very important to pay your bills on or before their due dates. These bills including your utility bills, mobile phone monthly fees, credit cards and other liabilities that reports to credit agencies.

Pay off your debts

Just like your payment history, the amount you owe in debt also represents 30% of your credit score. If you want to boost your credit rating fast, one of the best tricks that have worked time and again is to reduce your debt. This means that you’ll need a plan on how to pay off your debts. Ideally, you’ll have to focus on the high interest debts first. This is so the interest rate doesn’t balloon up the amount of debt you owe over time.

Limit credit card charging

If you have credit cards, this is the best time to limit your credit card charges. This is also the best time to start paying those bills in full. Paying just the minimum of your credit card bill is a common mistake you don’t want to commit. If you want to pay your bill in full, you’ll either have to earn more money or you simply have to limit your usage. Ideally, you’ll have to keep the charges to below 30% of your credit card limit.

Request for a credit limit increase

Once your creditors see that you’ve been paying your credit balances in full, you may be eligible for a limit increase. This may sound counterintuitive but doing so will actually help boost your credit score. If your request is approved, credit agencies will notice your creditworthiness improvement. Just one reminder, if you do request for a limit increase, this doesn’t mean you should increase your spending. The same rule still applies. Keep your charges to below 30% of your credit limit.

Be consistent

Once the plan of improving your credit score is set into motion, the most important step you need to commit is to be consistent. Improving your credit score is not going to be easy especially during the first few months. You will not immediately see the results of your efforts. The same way that it took time for your credit score to go bad, it will take months for any improvement to take effect. You’ll just need to stick to the plan and basically be consistent with your payments and charges in order to see positive results.


Quick and Easy Ways to Save Money

Saving money may come naturally for some people but not for the majority. If we are to believe recent surveys, majority of people especially the millennials are struggling with their finances. Driven by the lure of instant gratification, millennials are having a hard time saving money. Some have negative savings and are tied to high interest debts. If you don’t want to belong to the statistic, here are quick and easy ways you can try to start saving money today:

Create a realistic budget

This has been reiterated over and over again. If you want to save money, you’ll have to start from the basic. Create a budget so you’ll know how much you can set aside for your savings account. Make sure your budget is realistic enough. Otherwise, you’ll end up not sticking to the budget and you’ll get discouraged in the end.

Pay yourself first

As soon as you receive your paycheck, the first thing you should do is set aside money for savings. That’s how you pay yourself first. Ideally, you should set aside 10% of your income to savings. If you cannot manage that, you can always start small then gradually increase the percentage over time. No matter the amount, successful saving is all about consistency.

Make saving automatic

As many experts say, it’s easier to save money when it’s done automatically. If you really want to pay yourself first, you can set-up an automatic debit transfer each month. You can open a new account dedicated solely for your savings. As soon as your paycheck is deposited on your account, the bank does the automatic transfer depending on the amount you specified. With this kind of set-up, it will be easier to save money each month once you get use to it.

Use cash whenever possible

We are living in a day and age where we use credit cards for most of our purchases. You don’t have to follow the norm by sticking with cash instead. When you use cash for groceries and other purchases, you’ll have more control over your money. With cash, the value of your money is more tangible preventing you from overspending.

Leave the credit cards at home

To further avoid overspending, you’ll have to leave the credit cards at home especially if you’re planning a shopping spree. When your credit cards are not within reach, it will be easier to say no to impulsive and unnecessary purchases. Ideally, you should only use your credit cards for emergencies and important purchases. When you do use it, paying your bill in full is imperative.

Plan your meals

Other than rent and gas, one of the biggest expenses that eat up a huge chunk of your paycheck is food. Maybe you’re eating out a lot or you’re buying coffee every day. You may not notice it but these expenses can be curbed if you plan your meal each week. You may need to eat out less and cut down on coffee so you can add the extra money to your savings account.

Cut down on other expenses

If you really look hard at your budget and expenses, you’ll see that there are actually a number of areas you can cut down on. Take for instance, your monthly subscriptions. If you have several magazine subscriptions, you can lose one or two and save the money instead. You can also adjust your mobile phone contract accordingly. In any case, the key is to look for areas where you can curb the expense then use the money for added savings.

man  paying

Beginner’s Guide to Paying Debt

If you’re like most people, you probably have debts you’re trying to figure out how to pay. Whether you’ve racked up hefty credit card debt or you have a personal loan you need to pay as soon as possible, what you need is a good plan to manage debt properly.

Before we go to the actual plan, however, it’s important to remember that not all debt is bad. Debt may have gotten a bad rap but there is such a thing as good debt. Just to be clear, what we’re going to eliminate from your lifestyle is bad debt. Here’s a quick guide on how to manage your bad debt like a pro:

Assess your budget

Before anything else, it would help if you assess or make a budget if you haven’t done it yet. Before you can create a debt payment strategy, you need to know how much you can afford to set aside for this purpose. Cut down expense whenever you can and use the extra money for your debt payoff plan. If you have to live below your means in order to pay off your debt, do it.

List down all your debt

Once you have your budget set, the next step is to list down all your debts from the ones with the highest interest rate to the lowest interest rate. In most instances, you’ll probably have your credit card debt on top of the list. Other than the interest rate, you’ll also have to note the amount of money you owe per debt category. This step can be quite overwhelming especially when you see the total amount you owe but that’s part of the resolution. Only after you face the music will you be able to create a realistic and doable debt payment strategy.

Pay off debt with the highest interest rate first

As soon as you have the list of all your debts, start paying them off focusing on debts with the highest interest rates first. Your goal is to eliminate these debts as fast as you can. Credit cards, in particular, need to be paid off right away because this type of debt can balloon up over time. Continue the payment pattern until you’ve reached the debt with the lowest interest rate.

Limit your credit card charges

While you’re in the process of paying off your debt, you’ll have to make a commitment to stop creating new debt. In some cases, you’ll have to completely stop charging your credit cards. If you can’t pull that off, you can simply limit your charges until you’ve significantly reduced your debt. It’s also very important to make sure that you’re not just paying the minimum. As much as possible, you’ll have to pay your credit card bill in full each month to avoid the pitfall of high interest rates.

Get professional help

If you don’t know where to start, you can always seek for professional help. You may need to prepare to pay a fee for the professional advice. Consider it as investment. Provided that you found a good adviser, this step is a great way to kick off your debt pay off plan. Rather than create a plan on your own, the financial adviser will do most of the handwork for you. The adviser will create a plan or strategy and all you need to do is follow every step. Consistency when paying your debt each month is crucial to your success. The journey will be hard so make sure you’re committed enough before starting this project.


Do you really need an emergency fund?

Conventional wisdom has always been clear when it comes to emergency funds. If you want to be financially secure or free, you have to start building your emergency funds now. Irrespective of whether you have a mountain of debt to pay or you’re barely making enough money to get by, saving for the rainy day is crucial to your financial journey toward a debt-free lifestyle.

What is an emergency fund?

But what exactly is an emergency fund? As its name suggests, an emergency fund is money set aside for emergencies. Maybe your car broke down unexpectedly and needs to be repaired immediately. Maybe you need to pay for a hefty medical bill. Maybe you lost your job and you can’t find a job soon enough. These are situations you don’t really expect but needs to prepare for. By building an emergency fund, you are essentially emergency-proofing your finances from unexpected expenses.

How much do you need to save?

There is no rule of thumb to the amount of emergency fund you need to save but as a guide, most experts recommend that you need an emergency fund that equals to at least 6 months worth of your expenses. Let’s say your monthly expense is £450 per month. If you want to build an emergency fund, then the goal is to save £2,700 in total. That’s money you should be able to access immediately in case of emergencies.

Where do you put the money?

Because emergency funds should be easily accessible, experts recommend that you park your money on a savings account so you can always withdraw it immediately when needed. Other experts, however, might argue that when you do so, your money will be earning very minimal interest. In fact, the interest earned may be too low if you add inflation as part of the equation.

If you can find a savings account that offers a relatively higher interest, that’s a good place to store your money. But if you can find other financial accounts that offer even higher interest, it’s worth checking out provided that the amount is easy to liquidate.

Do you save or pay your debt first?

Another argument some experts point out when talking about emergency funds is high interest debt. When you have a high interest debt, do you pay for the debt first or do you save up for an emergency fund?

Considering the low interest earned with savings accounts, it makes sense to pay your high interest debt first, right? Not exactly. This is where balance comes into play. Rather than focusing solely on paying your debt or saving for an emergency, you’d be better off strategizing your plan so you can do both.

Do you need an emergency fund?

To answer the premise of this guide, yes you need an emergency fund. While none of us wants an emergency, the fact remains that it can hit whether you like it or not. Rather than panic when it hits, you’d be better off being prepared whether it hits or not. By saving for an emergency fund, you’re protecting your finances and yourself from headaches in the future.

Once you’ve saved enough for an emergency fund, this is when you can use the money to eliminate your debt completely. Focus on paying debt with the highest interest first and go from there. Once you’ve fully paid off your debt, use the money to open another savings account but this time separate from your emergency fund. You can also use the money for investments such as stocks or mutual funds.