Pros and Cons of Home Credit
Here at Doorstep Finance, we’ve always been transparent and honest with our clients. Here, we list down the pros and cons of doorstep loans so that you know what you are getting into before committing yourself into this type of credit.
Quick and easy money. With doorstep loans, you don’t have to wait for days or even weeks as you probably would if you took out a loan from the bank. You can get your money quickly and easily by applying online and waiting for the funds to be delivered at your door.
Flexible repayment terms. With doorstep loans, you can choose the length of your repayment period and the amount that you want to pay for every instalment based on what you can afford. There is no fixed repayment option so you’ll have absolute control over your finances.
Less requirements. Home credit doesn’t involve a lot of paperwork and requirements unlike bank loans. There’s not even a need for personal appointment, nor do you have to fax your requirements. All it takes is one simple online application and you’re good to go. Since the money will be collected from you by the agent every week, you don’t even need to set up your bank account for automatic payments.
No collateral. With home credit, you don’t have to put your car or your home at risk, unlike secured loans which require you to put down a collateral so your loan will be approved. You only need to have a stable job or source of income to prove repayment capacity for your loan to be granted.
Available for all types of credit. We all know how difficult it is to qualify for loans from banks or lending institutions if you have less than perfect credit. With doorstep loans, there are various types of loan options available for borrowers coming from different credit backgrounds. While there is no way to guarantee loan approval, you’ll still have a better chance of qualifying for a doorstep loans than standard loans if you have poor credit rating.
Limited borrowing capacity. With home credit, you typically can only borrow between £100 and £1000, much less if you are a first time borrower from a particular lender or if you have bad credit. This is because there’s no collateral involved, and thus this type of loan poses a higher risk on the lender.
Higher APR. The fact that doorstep loans are more easily accessible, despite the borrower’s credit, makes them a more expensive alternative to traditional loans, again because of the higher risk involved. Still, with how fast and convenient these loans are, you’ve probably expected already that there’s a price to pay for the unique features they offer.