Disadvantages of Doorstep Collection Loans in Blackpool
- Flickr: Camden Market
When you're short on cash and need a bit of extra money fast you'll probably find yourself looking for a loan. Doorstep collection loans in Blackpool are a popular source of alternative short term finance, mainly because they don't carry the bad reputation most online payday lenders have received. The prospect of receiving cash in your hand fast and making small weekly or monthly repayments may seem promising at first but you should really only consider a door step loan a last option.
Lenders and Loan Sharks
You'll find that most doorstep collection loans in Blackpool are offered by legitimate lenders. However, it's not uncommon to come across a lender who isn't regulated or registered as a lender ("loan sharks"). Always check company reviews and registrations before applying for a doorstep loan; having a loan shark at your door demanding repayments won't be a pleasant experience.
Higher Interest Rates
Doorstep collection loans in Blackpool will have a higher interest rate than your average bank loan. This is because the repayments are over a short period of time and the company will accept bad credit; rather than rejecting bad credit or low earners, some companies will simply increase their APR and target deprived groups. Only apply for a doorstep loan if you're absolutely sure you can easily afford repayments without leaving yourself short.
You can't repay your loan through direct debits or cheques with a door step loan. A representative of the company will come to your home to collect payments, so if you're away for any reason you'll have to go through the hassle of paying your representative, who might not offer an alternative payment date.
Lack of Discretion
Although some doorstep collection loans in Blackpool do state they are discrete about their service it will be hard to keep your loan a secret from family members if you need to. The personal doorstep service also gives doorstep lenders the advantage of placing added pressure on you to make repayments if you fall behind; other companies, such as online lenders, will instead send out warning letters or e-mails. A doorstep lender will be outside your home demanding money.