What is a Doorstep Loan?
A doorstep loan, or a door-to-door loan is a type of personal loan delivered to your doorstep by a loan agent. After the initial visit, the agent comes round again on weekly basis in order to collect the agreed loan repayments. Borrower can review their financial situation and credit needs with the agent and decide on the spot whether this is something suited for them or not. Because the agent sent by the doorstep loan agency is aware of the financial circumstances of the loan applicant, the borrower is better able to manage his or her loan repayments in full.
What is a Doorstep Lender?
A doorstep lender is a person who visits customers in their homes in order to provide this type of loan. Before this can happen, however, the potential borrower must first fill out a “request to call”. This gives the lender the permission to discuss the loan with the borrower, as well as any other detail that can ensure the loan to go smoothly. Of course, any visit by the designated loan agent is announced in advance and clients know in advance what loan payment is expected that time.
Does a Doorstep Loan Affect the Credit Rating?
Most door-to-door loan agencies, such as Doorstep Finance share payment records with the credit reference agency. In case you are having problems making weekly loan payments you can always discuss this with the loan agent and they should be able to help you with it.
How Does a Doorstep Loan Differs From an Online Loan?
A lot of people today have irregular work hours and are often unavailable for a visit by the loan agent sent by the lender. In this case, an online loan may be the best solution. However, for those that prefer a more personal loan service and to actually see and know who they are dealing with (these are hard times and you need to be sure when it’s your financial situation and future at stake) Cocktailer Loans offer door-to-door loans that are delivered directly to you in your house by a professional loan agent. The agent will then visit you each week, say on Fridays, in order to collect your weekly loan repayments. What this means is that the loan agent is much more capable of understanding any difficulties you might be facing that prevent you from making on-time loan repayments and is in better position to offer a solution to how you can repay your loan.
What Should a Doorstep Loan Agency Mean to the Customer?
The goal of a doorstep loan agency is not and should not be to bleed the customer dry. Instead, they should be available to the customer and, if need be, offer a solution if the customer can not make his or her repayments on time. Even if the borrower misses on the repayment, a door-to-door lender shouldn’t increase his APR (although many do this), or include any hidden charges. Everything about the loan should be crystal clear you as the loan applicant.