Financial challenges are such that you lack the money and time to deal with them. For instance, you have lost your job. Now, you do not have enough savings in your account to manage the household expenses.
In such a situation, you have a dual task. First, you have to arrange funds from external sources to control the expenses. Second, you must look for new employment, and for that, you need to have extra time. It is not necessary for you to get both at the same time. Therefore, what will be the solution?
There is no need to look around too much because you have one readymade solution to explore. Here, we are talking about home collection loans. These are short-term loans where the loan process and repayments are done at the home of the loan aspirants.
These kinds of loans are also known as doorstep loans, cash-at-the-door loans, doorstep cash loans and many more. Different lenders offer such loans with different names, and borrowers need to understand the concept behind these.
Due to the short-term nature of the loans, it becomes evident that the interest rates will be higher, and you cannot ask for larger funding. This may restrict you from taking out loans, but there are certain positive loan features that you must pay attention to.
From where to get home collection loans
These home credit personal loans are one such facility where everything related to the loan procedure will be performed at the borrowers’ home. As mentioned above, these loans belong to small funding, and therefore, you may not find such loans from the mainstream lenders’ end.
Therefore, the question may arise: Where can you get these loans? You will have a better chance of getting home collection loans from direct lenders. They may not have such a trustworthy history as compared to traditional lenders, but they are indeed the ideal alternative lending options for them.
In recent years, online direct lenders have gained much status in the loan marketplace due to their instant funding. Yes, you can get these doorstep loans online and receive the funds on the same day. Whether you approach mainstream lenders or the direct lending ones, the interest rates will be on the higher side.
Direct lenders bring these loans on certain features, which can be summarised as borrower-friendly features. In the next part of our blog, we will throw light on those salient attributes of home collection loans.
Features of Home Collection Loans
Every loan product has specific features and advantages. These doorstep cash loans are no exception. You will get plenty of them once getting the approval from the lender. Given below are some of the most prevalent loan features:-
- Online Availability
You may ask when everything is done at the borrowers’ home and then how these are online loans. Well, you will apply for these loans online. It means you have to visit the lender’s website and find an online form to fill out. It will require only the basic information like your name, contact address and contact number.
Mention the desired loan amount and wait for the lender’s approval. The representative will reply to your loan query online. Once the process is completed, the same representative will visit your home to collect the weekly or monthly repayments.
- Accessible in every location
Online loans have the primary advantage of vast availability. You can apply from any location whether you are living in London, Manchester, Bristol or Birmingham. The lenders have a presence all over the UK thanks to their online reach.
They have regional offices at different locations from where representatives reach your home. This means you are not required to visit anywhere, and everything will be done in your living place.
- Soft or no credit check
A credit check forms an integral part of the loan process. Every lender will check the credit history of the borrower before assigning any loan, whether it is a short-term or long-term one. The same applies to doorstep cash loans, too.
The lender will examine your credit history while analysing your loan application. The difference is that many lenders offer loans with hard credit checks, while online direct lenders only perform soft credit checks. It also refers to ‘no credit check’ because there will be no impact on your overall credit profile.
However, avoid applying for loans at multiple lending firms, as it will only harm your credit score.
- Bad Credit Acceptable
Small loans have a significant advantage over loans for a longer duration, where applicants with poor credit history can apply. Direct lenders have the provision of offering home collection loans for bad credit people.
This has become possible because the lender takes into consideration factors other than mere credit history, such as income status. It is very unlike mainstream lending, where rejections can be there if the credit score is not good.
With direct lenders, individuals with lower credit profiles can get a second chance, but only with small loans.
- Ideal loans for unemployed
Those with no full-time income need small funding. They want instant funding access to continue with their regular cash flow until they find a new job. By getting doorstep cash loans for the unemployed, they can somehow get small financial support to survive in challenging situations.
To get approval on these specific loans, you can convince the lender with your part-time income or the unemployment benefits that you are receiving.
Conclusion
Home collection loans are undoubtedly the better option when you need instant money at your comfort. However, you may find it difficult with high interest rates but don’t worry because the rates are still quite lower than those of payday loans.
There can be some risks associated with the functional features. For example, you will have to pay more with increased interest rates, and you may get trapped in another debt. Such situations may become more challenging when you are unemployed.
Therefore, you cannot control everything, but you can work hard to achieve it. Make the right decision at the right time, like applying for small loans only, and repay every instalment well on time. If you are able to do the same, you can manipulate any financial situation.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.
