Home credit or doorstep loans are one of the most convenient options of borrowing for anyone who is struggling to keep their creditworthiness. Many who fail to find emergency loans due to bad credit situation generally opt for instant cash advances at the high rate. However, before opting for any high-cost cash loan it is important to access your credit profile.
How does a Doorstep loan work?
As the name suggests doorstep loans are handed over to you at the comfort of your home. After you make a loan query, a loan agent visits you. The same agent would visit you for a loan interview, disbursement and collection.
Unlike payday loans, doorstep loans are instalment loans and the agent would visit you weekly or fortnightly to collect the loan repayment as per the agreement.
The decision to raise loan quickly should not turn into a financial suicide and bleed your credit score. For, a debt is a debt and it should be raised only when you have a pressing need and repayment plan in hand. Let’s find out the right approach towards doorstep loans:
1. Contact a broker
With a bad credit score, it is not easy to find the desired loan at a low rate of interest. Rather than struggling to find one, you can choose to contact a broker for the purpose. The brokers can connect the borrowers with the genuine lenders. You need not pay any fees to them as they charge from lenders. All you need to do is share your personal as well as account details with them and clearly state your needs.
Whether you need doorstep loans with no credit check or without collateral a broker will help you in your ordeal. They would access your credit profile before sharing the loan advice. The aim of the FCA registered brokers is not only to search for the required loan at the cheapest price but to find a deal which is affordable for you to repay.
2. Try to search for cheaper loans
Before you sign the deal, you should not forget to negotiate and try to get a lower rate of interest. The better rate you would get, the more you will save. With bad credits, every penny saved is a penny earned.
3. Borrow for only limited amount
As doorstep loans are expensive loans you should only borrow for the limited amount. Do not borrow for casual needs even if more is being offered at the lower rate. You should restrict borrowings to the need as you may later find it too difficult to repay the loan.
4. Repay and improve your credit
While you borrow a door to door loans, the loan agent would discuss loan affordability before sharing his advice. You should discuss the repayment of the loan carefully as it needs to be a foolproof plan. Successful repayment would improve your score and make you eligible for more loans in future.
With all these points, you can successfully seek a doorstep loan and take the first step to improve your credit situation.