Beware of common mistakes doorstep borrowers make

The doorstep loans make for a popular borrowing choice among those who need flexible cash advance loans for very short period. Whether you need a quick emergency loan or funds for gap fill arrangements, doorstep loans provide an answer to almost all types of borrowers.
 

They bring convenience to your door. As the name suggests, these loans are delivered to your home. As you raise a query for doorstep loans, the loan agent visits your home and guides you through the process. The loan agreement is set only after reaching a mutual agreement between the borrower and loan agent. These loans are expensive loans and should only be chosen as the last resort.
 

Bad credit rating and doorstep loans
 

Doorstep loans come with lesser hassles for bad credit borrowers. However, at times, lack of knowledge makes things more difficult for the borrowers. Whether you need a very urgent loan or raising a doorstep loan for a gap fill arrangement, it is important to set your expectation right.
 

From self-employed individuals to bad credit borrowers, many rely on doorstep loans for the sheer flexibility they get with these loans. You can choose the loan amount, loan rate and loan period during a face to face interview with the loan agent. After the mutual agreement, the loan terms are finalised. The same loan agent would reach you for loan disbursement as well as reimbursement.

Before you opt for a loan it is important to know certain popular mistakes borrowers make while choosing doorstep loans.

1. While comparing doorstep loans never compare the APR %. It is one of the common mistakes people make. Being small loans, it is unlikely to use these loans for 12 months. Most people raise doorstep loans for a few weeks. Thus, while comparing the deal make sure you do not compare the annualised percentage rate. The comparison would be misleading.
 

For example: Let’s say Mrs Leena wants to borrow £200 as a doorstep loan to complete a purchase for her daughter’s birthday. She is confident of repaying the loan next month after she gets her salary cheque. She doesn’t want to use her current funds as she is planning a party and thus she decides to borrow. Herein if Mrs Leena compares it with another short term loan, the APR % of the doorstep loan might appear too high. But as she decides to borrow for only 3 weeks, she might just be paying £45. Thus it is important to weigh your decision according to your personal requirements.
 

2. It is a myth that all doorstep lenders are loans sharks. When you contact a legitimate lender via an authorised broker, there is the least risk involved. A loan shark would make a first point of contact with you and would promise tall favours. However, a legitimate broking company would help you assess your credit situation and share deals after assessing your repayment capacity. They never make the decision for you but help you make a fair decision. You can contact a broker online. As you make the first contact they follow up and share the available deals.