Anyone with a less than perfect credit history will find it difficult to get a loan from any of the high street institutions … especially in these current difficult times. That’s why the doorstep loan is proving so popular these days … by providing small cash loans without the need for a credit check. Instead, the decision to lend (or not as the case may be) is based on the applicants ability to comfortably repay the loan moving forward.
Whenever an application for credit is made a credit check to one of the UKs credit agencies is made. This agency will check the applicant is who they say they are, check the address and other info held along with a report on previous credit history to show how debts have been handled in the past, if payments have always been made on time of if there have been any late payments, defaults, CCJs or any other problems. The result of this credit check will provide the borrower with the confidence to lend … or otherwise!
Credit problems can be caused by many factors and are often started by a change in circumstances – the loss of a job, illness, redundancy and with over 1,500 people being made redundant daily it’s easy to see how it can happen. But just as circumstances can change for the worse the opposite can also happen – you get that new job, you’re able to get back to work after illness etc but your credit history can’t be changed and so it’ll still be a struggle to find a company prepared to lend you any money – and that’s where the good old doorstep loan come in!
Doorstep loans for bad credit often require no formal credit check or, if they do, a decision to lend will not just be dependant on the result of the check. Instead, after you’ve applied online, you’ll get to meet your own local agent and talk about your situation face to face – if you’ve had problems in the past you’re able to explain and to satisfy the lender that no matter what may have happened in the past you are comfortably able to repay your loan moving forward.
Better still – get a doorstep loan and keep to your repayment schedule and it’ll count positively towards your credit rating making borrowing in the future easier.
The flexibility doesn’t just apply to those with bad credit – the open lending criteria means that those working part-time, retired, or even students and those on benefits may also be accepted.
The doorstep loans themselves are small cash loans, often of no more than a few hundred pounds or so, that can be repaid on a weekly basis over a term of up up to a year. Whilst interest rates may be quite high the actual repayments are small and affordable – hence the flexible lending criteria.
In these days of electronic communications and automated processes it’s refreshing to see that such loans do still exist where a decision to lend is based on face to face discussion with a real person who will look to the future rather than judge on the past. Don’t forget that just because it may be easier to access a loan in this way that it is right for you. Whilst lending criteria may be flexible and attractive they can be VERY expensive and hence should be avoided in many cases. Read our Doorstep Loans article, think hard and seek professional advice before you decide.