Applying for any kind of loan or financial support can be an incredibly stressful time, but knowing a few tricks and tips to ensure your application is as strong as possible might reduce some of that anxiety.
If you’re in need of a doorstep loan (Representative 466.37% APR) to help meet some unexpected costs, then there are a few ways you can increase the likelihood of being accepted by a responsible lender.
Firstly, at present you need a bank account in order to be approved for a doorstep loan with many providers.
This is a temporary measure rolled out during the Coronavirus outbreak and may change when agents are able to start safely visiting homes again, but for now you need a current account in order to receive your loan and allow the firm to collect your repayments.
In terms of the application itself, another big thing to remember is that leaving out information could have a major impact.
Be truthful! It’s really common for people to miss off important information that lenders need to make a decision.
You need to ensure that all your additional forms of income are included – that could be anything from overtime payments to child benefits.
This is because the lender will need to look at your monthly incomings and outgoings to assess whether you can afford the repayments.
Get on the electoral roll
Another super easy way to boost your chances of being accepted for a loan is to get on the electoral register – which means that you can vote in elections.
This data helps lenders confirm your name and address, so your credit score may increase as a result.
But remember, you don’t need to own your own home to be eligible for a doorstep loan – lenders can approve you whether you are a homeowner, private tenant or living in housing association accommodation.
Pay your bills on time
You can also strengthen your application for a doorstep loan by starting to build up a credit history. If you already have access to a small amount of credit elsewhere – with a starter credit card for example – then ensure you make your repayments on time.
For many reasons it’s important to pay bills on time to avoid going into arrears.
And when it comes to household bills, doing your best to pay your utilities (gas, electricity, water, phone etc) promptly will boost your credit rating.
Having said that, responsible lenders such as Morses Club don’t just look at your credit score. They will consider all your circumstances, including your income and outgoings to make sure that your loan is manageable and affordable for you.
Even with bad credit, all loan applications are looked at on an individual basis and all circumstances are considered.” To “Even with bad credit, all loan applications are looked at on an individual basis and all circumstances are considered. It might be even possible to get a loan with bed credit without the need of a guarantor.
Doorstep loans are designed to help people in all types of financial circumstances.
Can you prove it?
Finally, you can strengthen your loan application by ensuring you have the necessary ID and documents available when you need them.
When you fill out an online application form for a doorstep loan you won’t be asked to provide any documents.
Then if you are approved in principle, when an agent visits they will need to see some ID – this could be a passport or a driving licence.
They’ll also need to see evidence of income, and outgoings where possible too.
This is part of their affordability assessment to help make sure your loan is manageable for you.