There are many things to think about before deciding to take out loans such as home credit loans. Whether it’s secured ones or unsecured ones, you have to consider the situation from all angles and determine what the best course of action is. Familiarise yourself with home credit loans
In short, a home credit loan is an unsecured loan that you get at home. The application process, getting the cash, and even repayment is all done at your house. The agent comes by and takes care of everything, which is very convenient for a number of reasons. Take a look at our guide- what is a home credit loan?
But before you decide if a home credit loan is right or you, here are a few questions to ask yourself in order to assess your financial situation and see if you should consider a home credit loan.
Considering Home Credit Loans: How Much Do You Want To Borrow?
Before you decide what type of loan you should get (or if you should even get one at all), you need to think about much you want to borrow. Different types of loans have different limits, so if you want a large loan, you can’t rely on a payday loan, for example.
As for how much a home credit loan allows you to borrow, that will usually be between £100 and £500, but you can get as much as £1000 from certain companies. If your needed sum is under £1000, then you can get this type of loan, but if you’re after more, then you might consider an alternative unsecured loan or p2p loan such as on Zopa
Considering Home Credit Loans: How Much, How Often, And Over How Long Do You Plan To Repay?
Repayment terms are a major thing to consider when thinking about a loan. Can you afford to repay the entire sum back at once, or do you want to pay in instalments? How much can you afford to pay per month? Are you ok with higher interest if you get to pay over a longer period of time?
Your flexibility (or lack thereof) when it comes to payment dictates what kind of loan you should get. A home credit loan can be repaid in instalments, and the agent comes at your door to collect the payment.
Considering Home Credit Loans: Do You Have Collateral?
If you have any assets to speak of, you may be eligible for a larger secured loan. Owning an asset enables you to put it up as collateral, so the loan is secured. If you don't plan on getting a large amount, or you don't have a valuable asset to use, then an unsecured loan is a more feasible option.
A home credit loan does not require collateral, so you don’t need to worry about that disqualifying you. Of course, since this is an unsecured loan, it does mean that the interest rate will be higher, to offer the lending company some security.
Considering Home Credit Loans: How Is Your Credit History?
Acceptance for a lot of loans relies on your credit history. Do you have a stellar one? Then you might be eligible for a credit card or a larger loan. If you have bad credit, however, don’t despair – you can get home credit loans with no credit check.
While they do require for the agent to take a look at your financial situation and assess your eligibility, your bad credit won’t get in the way of you getting accepted for home credit loans with bad credit.
Considering Home Credit Loans: Are You Able To Leave The House?
Everyone knows that pursuing a loan is a complete faff – running around, applying to banks, filling out paperwork, going back and forth several days in a row, it's time-consuming and physically tiring. Unfortunately, that makes getting a loan prohibitive for a large segment of the population who, for various reasons, cannot leave the house.
Disabled individuals, elderly citizens, single mothers, etc. largely benefit from things like a home credit loan because of the convenience of having the home credit loan agents come to your doorstep for any and all transactions necessary.
Considering Home Credit Loans: Do You Have An Income?
Getting accepted for a loan is not difficult when you’ve got an income, especially if it’s at least average. It’s the people who are unemployed that are having a hard time getting someone to look at their applications.
Obviously, if you have a good income, you can have your pick of loans, according to preference, but if you’re unemployed, your options are limited. But even so, home credit loans for unemployed individuals can provide huge help and financial relief if you’re unemployed and in a financial pinch.
Considering Home Credit Loans: Are You On Benefits?
- Similarly to unemployed individuals, no one will give people on benefits the time of day. Whether it’s letting a house or granting a loan, it seems that no financial institution will take a risk on them. That’s where a home credit loan comes in – home credit loans for people on benefits can be exactly the financial solution you were looking for.
|Home Credit Loans - Quick Recap|
|How much do you want to borrow?||Borrow under £1000|
|How much, how often, and over how long do you plan to repay?||Pay in instalments over a longer period of time|
|Do you have collateral?||Get an unsecured loan without collateral|
|How is your credit history?||Get a loan with no credit check|
|Are you able to leave the house?||Get a loan at your house|
|Do you have an income?||Get a loan for unemployed individuals|
|Are you on benefits?||Get a loan for people on benefits|
- As you can see, there’s a slew of things to consider before deciding on a loan. It’s a massive financial undertaking and a great responsibility, so it is not a decision that should be taken lightly.