You have been approved for a doorstep loan! Congratulations! However, the sad part is that the loan tenure is not of your choice. It is 22 weeks, which is more than 5 months but you want at least 34 weeks that is a bit more than 8 months. For sure, your financial situation is the prime cause of your eligibility for a particular loan tenure.
You are not ready to go for a smaller duration. More time to repay the loan means smaller installments and more balanced monthly budget. Whereas, the bigger repayments, may cause missed repayments, which can ultimately hurt the financial records. The longer one seems a bit difficult to achieve because the lender cannot change its policies for one borrower.
With rational efforts, you may win longer tenure, but what are those efforts? Well, they are some logical ways to stretch your financial capacity to a level where 34 weeks are not impossible. Please have a look at them and tailor a bit to fit in your financial situations.
Inform the lender to consider some adjustment in the tenure
The first thing that you CAN and SHOULD do is contacting the lender to let it know your concern. Ask for all the possible changes that can be made to add more number of weeks. Sometimes, the applicant is practically eligible for a longer duration, but due to the policy of the lender, restrictions happen. May be your one call with the firm, and logical reasons can make the finance company change its decision.
Bring a guarantor
However, the doorstep loans in England never come with any demand for a guarantor. Few lenders give the liberty to bring a backing either to attain more funds or to get longer tenure. Anyone with a good income and financial history can become your guarantor. Then it can surely be possible to prove eligibility for 34 weeks.
It is the safest way to play the game and get what you need. Bring anyone, your partner, friend, family etc. with a flawless financial history, and things can be more comfortable.
Make use of your good credit score
If your payment history is clean and impressive with a good credit score, then this is the time to exploit it. May be due to less income you could not qualify for the desired loan term, a good credit score is your second chance. You can easily ask the lender to reconsider your loan application. Loan companies usually try to keep a hold on the applicants with a good rating.
Your credit rating is the king that affects every financial decision. The world knows how effective the presence of a credit score is. They are decisive and if they can act destructively in case of poor payment history. At the same time, they can also act constructively in case of good credit history.
If fortunately, you are on the latter part, then why not make the best possible use of the opportunity. After all, the credit reference agencies are showing the evidence in the form of good numbers on your financial records. Lenders should not ignore them.
Pay off existing debt to adjust more weeks in the creditworthiness
It can be the most influential factor to get the actual number of months for your doorstep loans. Pay off any loan or debt running with your name. Due credit card payment, personal loan, other pending debts, pay off any one of them. It will surely turn the time in your favour and you can get more time.
The other benefit shows in your capacity to afford a loan through an improved debt-to-income ratio. Paying off an obligation frees a big bunch of your income. It gives more space for new loans, which naturally gives way to the longer tenure.
The above ways are practical and rational, as they all relate to real-life situations. A little change in the circumstances and approach can turn impossible into possible. It would help if you were cautious about each and everything you do in your finances. You need to sound perfect on every aspect and then the desired is not impossible to achieve.
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.