It is a fact of life that financial emergencies are bound to happen every once in a while. The concept of financial security is something that is a preserve of a select few. The rest of us have to contend with borrowing especially when an emergency occurs and we are short on cash. Overdue bills, car breakdowns, leaking roof repairs or even urgent medical bills are some of the reasons we resort to borrowing. While it is simple to advice a person to borrow money from a high street bank or financial institution, the truth of the matter is that the whole process is difficult especially if a person has a poor credit rating.
We live in a time where the ease or difficult of access to credit is informed by the state of our credit rating. The better the credit rating the higher the chances of approval for a loan and the lower the credit score the difficult it is to get access to credit. That said, the situation is not as bleak as many of us like to think. The mushrooming of lenders offering bad credit loans has indeed been a blessing in disguise to the thousands of UK citizens suffering from a poor credit rating.
No one deserves to be denied a loan when they badly need it but unfortunately lenders have no choice but to cushion themselves against defaults and hence the insistence on a good credit score. That said, there are a number of loan products that simply doesn’t take into consideration the credit rating of a person. Such loan products such as doorstep loans and logbook loans have indeed taken the UK market by storm. For the purposes of these article, we are going to shed light on door step loans for people on benefit.
In essence, door step loans are a loan product that are primarily meant for individuals with a poor credit history or less than average credit rating. From the sound of the name, this is the kind of the loan where the lender delivers the cash you have applied for upon approval on your doorstep. In other words, you don’t need to live the comfort of your house to apply and get approved for this kind of loan. One of the officers from the doorstep loan company will come to you, walk you through the loan product, the benefits, the terms, the risks and assist you through the application process.
The beauty of doorstep loans is that an urgent will deliver the cash to your doorstep once your application is approved and is also mandated with collecting repayments on a weekly basis or based on an agreement you had. It is a convenient loan product considering that you don’t need to move an inch from your house, no credit checks are required, the application process is simple and the lender comes to you as opposed to the borrower going to the lender.
With a doorstep loan, you are free to apply for a loan from a minimum amount of £100 up to a maximum of £1500 depending on the lender you are doing business with. It is a short term loan that accords you cash when you urgently need it without worrying about your credit history but it is advisable that you repay the loan within the stipulated time or you will have to deal with penalties and late fees!