You may decide to apply for a doorstep collections loan if you’ve got a poor credit history and have been refused credit elsewhere. The reason that doorstep lenders have become so popular is because they don’t credit score applicants, lend money to unemployed people on benefits and offer convenient repayment terms.
You’re able to borrow money on a completely unsecured basis so you don’t stand to lose any collateral. Doorstep cash loans with defaults are strictly regulated by the Consumer Credit Act 1974 and shouldn’t be confused with borrowing money from an unethical and unregulated loan shark.
How Doorstep Collection Loans for People with Defaults Work
All that you need to do is submit a straight-forward online application and you’ll be given a lending decision in principle within a few minutes. Alternatively, if you prefer the human touch, you can apply for a doorstep cash loan through your local agent. You can normally book an appointment to see someone within 3 working days.
Completely new customers can easily borrow £500 today. The maximum repayment term varies between lenders, but it’s possible to repay the debt over a period of up to 52 weeks. It doesn’t matter if you are out of work or have bad credit, you just need to prove that you can afford to make the repayments.
Doorstep Collection Loans with Defaults for Low Income Families
The only way to ensure that the repayments are affordable to you is by not over-borrowing. This is particularly important when you’re trying to get by on state benefits or a low income. Your advisor helps establish whether a fast cash advance loan is feasible or not as it’s not in their interests to see you struggle.
Once you’ve received the cash, the repayments will be collected each week by your local agent. This is particularly useful if you have no bank account to set up a standing order. A £300 doorstep collection loan over 52 weeks from Provident Personal Credit will cost you just £10.50 per week.
Bad Credit Doorstep Loan Lenders & the Consequences of Default
If you fall into financial difficulties, always keep doorstep loan companies informed so that you can reach an amicable solution. Although your quick cash advance is unsecured, non-payment will mean that interest and charges will continue to accrue. Don’t just hope that the problem will go away because it won’t.
Unpaid doorstep collection loans will be passed to a collection agency and they will pursue you for the balance. On the plus side, if you pay punctually and establish a good working relationship with a doorstep lender, you’ll be eligible to borrow more and spread the repayments over a longer timeframe.