The borrowing of the doorstep loans will become stricter to avoid any kind of customer exploitation. Doorstep lenders or the Home Credit Providers, have an image of using exploitative tactics towards the loan borrowers. This, results in the borrower exploitation through the loans. To avoid the same, the process of lending the doorstep loans in Nottingham has become stricter.
Who uses doorstep loans?
Around 1.6 million people use doorstep loans to fund their monetary requirements. Last year, around 30,000 people took the help about managing the doorstep loan debt, as per Citizens Advice. A lot of people from those, who approached for help were unemployed and half, had council taxes as arrears. While some had disability, others had to pay the debts on their credit cards.
Those who are the most vulnerable set of people opt for the doorstep loans and often fall under the hardships that the loans serve. Apart from that, the loan companies charge a high rate of interest from these people, which thus result in the customer or borrower exploitation.
Doorstep loans with no credit check
Most of the people in the UK suffer from the struggles of having a poor score of credit. The biggest trouble that they face is regarding the loan approvals. Most of the lenders do not offer the money to the people who possess a poor score of credit. With the new changes taking place and the evolving society, many online lenders have come into existence offering the customers, an opportunity to get the doorsteps loans with no credit check.
The usual credit check that the lenders perform often involves a time consuming process that delays the loan and additionally, ruins the credit score of the borrower. Here, in the case of the doorstep loans, the online lenders do not make a credit check and offer the loan amount to the people with an interest rate higher than the usual.
How to stay safe when borrowing a doorstep loan
It is certain that borrowing doorstep loans can help in getting the amount of money that you need. One of the main things that a person must keep in mind is, to stay safe. Here are few things that you can consider in order to stay safe from the doorstep loans –
- The loan collection agents do not have extraordinary powers of their own. They are not the gods of the doorstep loans who can provide you all that you require. Do not let them get into your homes without a permission of your own.
- Stay aware of the loan sharks continuously promising you to provide the money. Always research and check before you start to borrow a loan. Do not get yourself trapped.
- If you have a default notice against you, it is time to get the same checked and get rid of the stress as soon as possible.
Doorstep loan alternatives
Doorstep loans may prove to be a risky choice for the people who look forward to borrow them. Hence, there are some of the alternatives for the doorstep loans, which include instalment loans in UK. To be on a safe side, borrowing these loans can be advantageous, as they do not involve high costs and the repayments within them is easy.
The borrower simply has to pay back the money in regular installments including the amount of interest rate as chargeable by the loan lender. This helps the borrowers to stay away from the negative outcomes of the doorstep loans thus creating a better and effective opportunity to manage the finances.
Emma Anderson is a highly accomplished Editor-in-Chief at 24cashfinances, renowned for her exceptional expertise in the finance industry. Holding degrees in Finance and Marketing, Emma has developed a deep understanding of the financial landscape, particularly when it comes to loans and personal finance.
Emma’s professional journey began as a financial analyst, where she gained hands-on experience in evaluating market trends and analysing investment opportunities. Emma’s enthusiasm for writing and her goal to educate and give individuals a voice motivated her to move into financial journalism. Her work has been published in popular magazines and she has produced thought-provoking pieces on various financial topics.