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Online loans £50 To £2000

The Best Loans In Then Market

How much?

Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.

Why Choose MoneyFall

Quick and Easy Process to the money you need. The most reliable lenders from across all the UK

Loan amount
1,500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Excellent
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Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
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Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
Apply Now

Show More ▼

Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
Apply Now

Show More ▼

Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

Do Doorstep Loans Need Guarantor?

When you have bad credit, looking for a guarantor is one way to increase your chance of getting approved. The guarantor will act as the security against the doorstep loan, thus increasing the lender’s trust to the borrower. Almost anyone can be the guarantor, but not everyone is eligible to be one. It means that you need to find someone who can efficiently provide the loan provider with an “assurance” that he can handle the loan should you choose to default on it. So, who can be the guarantor? Before finding out who can act as the guarantor, let’s first understand what a guarantor is. A guarantor is a third party who agrees to take your responsibility for repaying the loan and its charges if you’re not able to do so. The concept is nothing new; in fact, the trust-based system was used by the lenders a long time ago. It gives high-risk borrowers a chance to find an option whenever they are in need of cash. Rather than receiving a constant rejection, the borrower can have his chance to get the loan with the help of a guarantor.

Who Can Be The Guarantor? Doorstep loans claim that anyone can be a guarantor, but in reality, it doesn’t work that way. Rather than accepting 18-year-old cosigners, they will look for someone whose financial aspect and credit are ready enough to sustain the repayment. Thus, they have specific requirements for every guarantor to be qualified. These are some of the critical factors that lenders look for before becoming a guarantor:

  • An Excellent Credit History

Having a good credit history, sometimes, is not enough to impress the lender. Instead, it takes axe excellent rating to be qualified. Borrowers may be qualified even with a poor credit rating, but guarantors are required to have very appealing credit remarks.

  • Financially Stable

The role of a guarantor is vast. Thus there’s a need to show healthy finances to impress the lender. Their financial position should be enough to cover the debt in case the borrower decides to default.

  • Homeowner

Although this requirement is not that needed, guarantors can increase their chance of getting qualified if they can provide a tangible asset. As collateral, the security against the loan should anything go wrong with the credit repayments. It means that the cosigner’s property is at risk if they cannot commit to their responsibility.

  • Connection With The Borrower

Of course, it’s necessary for the borrower and the guarantor to be linked. However, they should not be connected financially; it can be your friend, relative, colleague, or employer but not your spouse. In short, the borrower and the cosigner must trust and know each other.

  • UK Residency

Being a UK resident or citizen is essential. In case the loan provider has to take legal action against him, they can quickly do so because they are from the same country.

  • Income And Assets

To cover the repayment successfully, the guarantor needs to provide proof of high income. It is also ideal if he can afford enough evidence of his assets or another source of fund, such as his investments, annual salary, savings, pension, etc. Role Of A Guarantor Aside from signing up the contract with the borrower, the role of a guarantor is barely visible. The borrower is still the one in-charge of compensating the loan, issuing checks, etc. The entire responsibility will not be passed to him immediately unless you, as the borrower, cannot fulfil it anymore. If the guarantor, for instance, defaults on the loan as well, then the lender has the right to file a legal action against him. Also, his credit rating will be affected and create a new line of credit is almost impossible in the future.

why choose doorstep loans

Doorstep Loans: Guide For Bad Credit Borrowers When Choosing A Guarantor

The obligation of the guarantor is severe, so it’s essential to choose someone who’s more than ready to take the job. The cosigner should understand his role and the risks that come after signing the dotted line. Unlike joint loans, he doesn’t have any right or part to the credit, but he has the responsibility to make the repayments. Choosing a guarantor is hard; apart from the obligation, he also needs to meet strict requirements. So, to find someone who will fit the task, here are some things you need to consider:

  1. Shortlist Potential People

Write down any potential people you have in mind, and you can start jotting names of family members, friends, or people you trust. One of the best options can be your grandparents, close colleagues, or best friends.

  1. Evaluate Their Financial Stability

Think about their financial position. Could they afford to repay the loan if you’re not able to do so? What are the potential effects of the repayment to their daily lives? Will they suffer financially? If you think that the loan has a negative impact on their finances, then it’s best to cross them out.

  1. Find Out If They Own Assets

Do they live with their parents or they have a home under their name? Having collateral, such as a home, is appealing to the lender since they can use it as security against the loan. The older the purchase date of the house, the better it is for the loan provider.

  1. Talk To The First Candidates

Contact the people who are still on your list and find out vital information. Most importantly, ask if they are willing to act as the guarantor of your loan. Some essential information includes their credit score, a source of income, etc.

  1. Make Sure That Both Of You Understands Your Responsibility

Once the other person agrees to become your guarantor, make sure that they understand the responsibilities and liabilities that he might face. He must be happy and willing with the situation, and he’s not just forced to sign up the contract.

Doorstep Loans Direct Lender For People On Benefits

The beauty of doorstep loans is not only seen by those who employed regularly; it is also beneficial to those who are receiving pension or benefits. With a limited source of alternative fund, you can speedily confront a severe financial crisis. Also known as home collection loans, this type of loan is acquired most conveniently. All you have to do is apply online by filling out the application form with necessary personal and financial details, verify the information with the lender through a phone call, and wait for its agent to visit your home. If you want to keep things private or you’re too shy to ask your friends and family for money, then this loan is an ideal option. Doorstep loans will not require you to step out of your home as the agent will help you on the entire application process. If you’re having a hard time walking or you have limited time to visit a loan, this unsecured loan will suit your needs. A considerable income or excellent credit rating is not necessary. You can freely talk to the lender about your requirements as they assess your repaying capability. It will help them determine the amount you can borrow, the interest rate to be charged, and the monthly income that you need to settle. Meanwhile, as you provide relief to your fiscal crisis, you are also improving your credit remark. As you repay the monthly amount promptly, you are also increasing your credit score. A pleasant credit report is a key to having a smooth application, lower interest rate, and more significant loan amount.

Are Doorstep Loans Unsecured? Yes, doorstep loans are as unsecured loans. There’s no need to provide collateral or any item of value just to get the loan. In fact, there are no documents and other files required. You will no longer need to wait for days for its process. It means that you can use the money once you’re approved. Unlike banks and traditional lenders, there’s no need to wait for weeks or months. The funds will be delivered personally by the agent. Benefits Of Doorstep Loans Doorstep loans are advantageous especially when you’re too ashamed to borrow money from the people you know. It is also helpful when your loan application will not get the approval from the banks and other lending facilities. Here are other benefits of doorstep loans: Convenience Applying for this loan doesn’t need any complicated process. In fact, all you need to surrender are the requirements, such as your personal and financial information. There’s no need to go out of your home or wait for several weeks to get approved. Personal Touch The personal touch or service offered by the lender differentiates it from other types of loan. An agent will visit your place to accommodate your concerns personally, and the same person will process your application and deliver your money. Helps Bad Credit Borrowers Those who are having trouble with conventional lenders and banks will get the approval they need for the doorstep loans. Although the amount offered is limited, the borrower can still have additional support to relieve his financial dilemma. However, the borrower needs to guarantee that they can keep up with the repayment.

choosing the best doorstep loans

Doorstep Loans No Guarantor Disadvantages

A doorstep loan offers a lot of advantages; however, it also carries several disadvantages. Thus, before getting a loan, you should consider its downside too. Here are some of its cons: Expensive Interest Rates The weekly repayments appear minimal. However, the interest rate it carries is exceptionally high. It is usual considering the convenience it offers. Also, the loan accommodates high-risk borrowers, and it’s quite reasonable for bad credit loans to charge high-interest rates. Short-Term Repayment A doorstep loan won’t require you to settle the amount in one lump sum; however, the repayment happens on a weekly basis. Considering the principal amount and the interest rate, repaying the loan might be a little confusing.

Doorstep Loans UK: Find Good Doorstep Loans In An Instant

One way to reduce your costs is to find the right doorstep loan provider. If you’re a student or you’re too sick to move around, you can surely benefit from doorstep loans. The money is delivered to your place so you can stay at home and get the help you need. Some borrowers who cannot go to banks or other financial institutions because of several factors but look for financial assistance now and then. Finding a doorstep loan provider is easy; however, finding the right one can be challenging. Some lenders are claiming that they are the best ones, but sadly, most of them fail to commit to their words. Here are some things you need to consider to end up with the right lender you need:

  • Find different doorstep lenders nearby and take note of them. Visit their websites to learn more about their rates, terms and conditions, and their service. This way, you can know them even better.
  • Read the feedback from their previous clients. This way, you’ll know and understand their service, work culture, and even the complaints. The reviews from their former clients can be used as a basis whether they are worth dealing with or not.
  • Start taking quotes from different lenders and compare them. It will help you find out who offers the best deal. However, also take note of their terms and conditions. Make sure that the lender is transparent with all of their fees. Some lenders who offer cheap rates only to find out that there are also hidden charges.
  • Select which one is the best. You may visit the lender if you have the time or call their customer service so they can address your concerns before you let them visit your home.

Doorstep loans are convenient and accessible. It has a lot of advantages especially to those who have low income and poor credit rating. However, it also has a few disadvantages to consider. If you’re not sure about your capability to settle the loan, then it’s best to look for another option.

5 most recent personal loan reviews

Review of Bridge Finance

This is my second loan with Bridge Finance and both times they have been very helpful and informative. Explained everything to me and made sure I understood the process and what would happen. I would recommend Bridge to anyone.

Review posted by Charlotte Ashton

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Wesleyan Bank

Wesleyan loans are a financial institute which is excellent for applying for loans. It looks at all your circumstances and provide loans to people who are refused elsewhere. They are fast and honest. I would recommend Wesleyan loans to anybody who needs a loan.

Review posted by Zafrullah Khan, Slough

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Logbook Loans

Really happy with my experience with Logbook. Most of the process was done online from the convenience of my own home. Really friendly customer services too! Highly recommended.

Review posted by Bethany Holcombe, Cirencester

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money
All reviews are sourced from Trustpilot.com for authenticity.