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Practical tips to help you improve your credit rating and avoid expensive high interest loans

Door to door Loans explained

an image of a man handing over a card on a doorstep

If you’ve been looking for a cash loan you might have come across the term door to door loans and been confused about what these are. Let us explain.

Door to door, also known as doorstep or home credit, loans are small cash loans delivered to your door by a local company representative who will collect your repayments on a weekly basis until the debt is repaid.


Offering a financial lifelineAn_image_of_a_lifeline

This type of borrowing is particularly suitable for people with mortgage arrears, CCJs or a bad credit history who may have been refused other types of loans in the past.

They are not meant to be a long-term solution to financial problems and the APR is representative of the fact that they should be paid back as quickly as possible.

Find out more about CCJs and their impact by clicking here.


How to arrange a loan and what happens nextAn image of a folder with a loans tab

If it is your first loan with the company there are usually restrictions about how much you will be allowed to borrow. For most companies, this is around £100. Once you have demonstrated that you can afford the repayments and that they are always on time you will be able to arrange additional finance if necessary.

After you have applied for the loan, and as long as there are no problems with the application, it will be agreed in principle and you will be contacted by a local representative or agent who will come to your home to go through the terms in more detail. You will need to produce proof of your identity and address at this meeting.

As long as the agent is happy that the loan is affordable and everything has been compiled correctly they will approve the loan. The money is usually available within around 24 hours and will be delivered in cash.

If you are a little unsure about which forms of ID can be used as proof of your identity, the UK Government has drawn up a Proof of identity checklist


Repayments made in cashAn image of lots of five pound notes

As all repayments are also collected in cash there is no need for you to have a bank account in order to take out a door to door loan. Your designated agent will visit at a weekly pre-arranged time to collect your payment and will log all transactions in a record book. This will enable you to see exactly how much you owe throughout the term of the loan.

All applications and transactions are dealt with in the strictest confidence so there is no need for anyone else to know about your loan if you wish for it to remain private.

There are no hidden fees and overpayments and early repayments are accepted.

For more on the benefits offered by overpayments, please click here.


Improve your credit rating while you borrow!An image of a credit score meter

As long as all repayments are made on time and in full you will actually improve your credit score while you borrow. This is because the major credit agencies are advised of every transaction and this means you might be able to apply for a more conventional loan in the future.

If you think you are going to have problems with any payments it is important that you speak to your agent as early as possible. Under most circumstances, alternative arrangements can be made to ensure you are able to continue clearing the loan.

If you would like to explore alternative ways to improve your credit score, take a moment to visit the Telegraph article - 20 things you must know to boost your credit score


Whilst doorstep loans offer an option if you have a poor credit rating, there are typically lower-cost options available, see our:

Frequently Asked Questions

1What are doorstep loans?
As the name suggests, doorstep loans are loans which once agreed, will be delivered to the home of the applicant in the form of cash. The repayments will also be collected in a similar way.
2Are doorstep loans known by any other name?
Doorstep loans are the common name but you may have heard them referred to as home credit loans. Both work by having the loan and the repayments delivered to and from the home of the borrower and are essentially the same loan.
3What is the repayment period?
When a loan is arranged, you will be able to decide the length of time that you can make your repayments. Depending on the amount you borrow, the repayment period will vary.
4My credit rating is not great, will this be a problem?
Doorstep loans are part of the bad credit market and all applications will be considered, regardless of your credit rating. There are other options available though such as Guarantor Loans which may offer a cheaper solution.
5Can I still get a loan if I am not a homeowner?
You can. Doorstep loans are unsecured loans and therefore owning your own property is not an essential requirement.
6Can I repay my loan earlier than agreed?
If you find that your financial circumstances have changed and you are in a position to repay your loan at an earlier stage than agreed, this will be acceptable. By repaying your loan at an earlier stage, you will be able to reduce your total interest payable on the loan and keep repayments down to a minimum.
Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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