Doorstep Loans

Doorstep Loans vs. Payday Loans

Both doorstep and payday loans are consumer credit products for smaller sums of money than traditional personal loans cater for. Both formats of loan are normally for between £100 and £1000 and are repayable over between a few weeks and several months. However, there are a few important differences to be aware of if you are considering applying for either a doorstep or payday loan.

Doorstep Loan Characteristics

• Online application.
• Local agent will visit your home to conduct affordability check, finalise your application and give you your loan in cash.
• Local agent will visit your home weekly to collect repayments.
• From application to home visit to finalise loan will normally take 48 to 96 hours (2-4 days).
• You can normally borrow between £100 and £1000.
• Repayment usually in weekly installments.
• Installments usually spread over between 12 and 52 weeks.

Very Merry Payday Loan Characteristics

• Online loan application.
• Instant match with one of over 20 lenders offering best interest rates for your loan application.
• Approval for loan usually given within minutes.
• Loan usually transferred directly to your bank account within 2 hours and 1 day.
• You can borrow between £100 and £2000.
• Repayment in flexibly weekly or monthly installments to match your paydays.
• Repayment installments taken directly from your bank account.
• Installments spread over between 1 and 12 months.

When a Payday Loan Might Be Suitable

Payday loans are a suitable consumer product for situations when the borrower has an unexpected bill or for a one-off situation when they have had a greater concentration of necessary expenses than normal. When friends or family are not a practical or convenient option, going through a regulated payday loan lender can help bridge short term cash flow issues when a small sum that will be quickly repaid is required to meet financial commitments.

With a value of a maximum £2000 and a quick online application and acceptance process that should have the cash in your bank account within a day at most, payday loans can be a convenient option in unplanned scenarios that leave you in need of speedy financial assistance.

Applying for a Payday Loan

Via Very Merry Loans, applying and receiving a payday loan is as simple a procedure as possible. Fill in our online application form with your basic personal details such as name, date of birth and address of permanent residence. The only other information that this 5-minute process requires is details of your employment or other regular income and the date you will next receive it on and the bank account to which the loan will be paid into and from which you will make repayments.

What are the Eligibility Criteria for a Payday Loan?

Most payday loan applicants are eligible and applying for a payday loan via Very Merry Loans means that you will almost certainly be approved. As long as you are over 18 years of age, live permanently in the UK and have a bank account, you should be approved for a loan from one of the over 20 UK-based payday lenders we work with.

Having a poor credit score, being a single parent, working part time, currently receiving state benefits or having immigrant status will not mean that you are not eligible for a payday loan. As long as you meet basic affordability criteria that show that you will be able to make repayment installments on or immediately after the dates on which you receive your regular income, you should be approved.

Why Very Merry Loans?

Because we are an FCA-licensed payday loans broker rather than direct lender, we work with over 20 FCA-regulated payday lenders. This means that we will always match you with the lender willing to approve you for a payday loan, that offs the best interest rate terms, saving you the time required to personally shop around and compare offers. One application means you will receive the best offer available from amongst our partners. You will also not pay any additional brokerage or arrangement fees.

How Much Can I Borrow?

The lenders that we work with provide payday loans of between £100 and £2000. How much you are able to borrow will be based upon affordability criteria which takes into consideration your regular income and outgoings.

How Long Will It Take for Me to Receive a Payday Loan?

One of the main advantages of a payday loan is that borrowers will, in the majority of cases, receive the funds into their bank account the same day as completing their application. The application form shouldn’t take more than 5 minutes to complete and within a couple of minutes a match is made with the lender willing to make the loan and offering the best terms. Once the lender has run a ‘soft’ credit or affordability assessment and terms have been accepted, which usually doesn’t take longer than 30 minutes, the funds are transferred to your account within a couple of hours to a 1 day.

When Will I Have to Repay a Payday Loan?

Payday loans brokered by Very Merry Loans are repayable over a minimum of 1 and maximum of 12 months. Your first repayment installment will fall on or immediately after the date of your next payday or other form of regular income such as grant, benefits or income from investments. The number of installments to be made and over what period of time will depend upon a combination of how much you borrow and how much you can comfortably repay out of your regular income.

Circumstances in Which a Payday Loan is Not Suitable

You should not apply for a payday loan under a number of circumstances:

• You have access to another option such as an advance from your employer.
• You can borrow conveniently without interest from friends or family.
• You are concerned that meeting repayment installments will lead to further financial problems and the need to borrow again.
• The expense the payday loan will be used to cover is not urgent and can potentially wait.
• You have ongoing financial difficulties or problems with debt.