In what situations are people most likely to require financial assistance? Stay at home moms, unemployed youths, and people restricted to stay at home due to old age, a disability or the ill health of a partner. People who are constantly suffering from a shortage of funds. People in these situations are the perfect candidates for a doorstep loan.
These doorstep loans are short-term credit loans that are mainly delivered to your front door. These are loans for individuals wanting small amounts up to $1000 and only for a short period. A friendly local agent will visit the applicant regarding the loan. He can hand over the cash, and subsequently, he can also collect the installments from the borrowers at their home.
When you are unable to visit a finance company, and you don’t have a computer that can use to get you online, then a doorstep loan is not a bad solution. The convenience of these loans does come at a cost.
Are doorstep loans similar to payday loans?
Well, both are instant cash advance loans. Payday loans are direct account transfers while a doorstep loan has an agent who hands over the cash. Both are quick credit solutions. But the doorstep loan is an installment type loan, and that makes it a bit easier on the repayments side. The agent also collects the repayments. With payday loans, you have to pay back the borrowed amount within a few weeks or by your next payday.
Finding the right lender
Before applying for a doorstep loan, make sure you are dealing with a registered lender with the appropriate financial conduct authority. They act as a financial watchdog. Use a registered loan broker whom you would expect to introduce you to a registered lender.
When applying for a doorstep loan, a financial agent will visit you. Just like any application, you would discuss your credit history and your loan requirements. Like all loans, only borrow the amount that you need.
Advantages of the Doorstep Loans
- There is a better chance of getting the loan than through online or through institutions like banks, especially if you have average to bad credit.
- The loan deal is put together in the comfort of your home.
- You will receive your money in cash.
- If your application interview with the visiting agent is successful, you get your money straight away.
- The personal interaction can put you at ease.
- The interest rate is going to be higher than other typical loans.
- The borrowing amount is limited to $1000 maximum.
- You have to take care when dealing with cash loan lenders. Not all are reputable.
If you are happy to pay higher interest rates and you are in that category of stay at home, then a doorstep loan is a reasonable option. If you are needing a more substantial amount of money or paying the higher interest rate is not going to make you comfortable, then you would need to consider a different loan strategy.