Home credit loans

Home credit is a small, short-term loan with repayments collected from your door. 

• Loan amounts typically range from £100 to £1,000.
• You usually repay the loan over 14 to 52 weeks.
• An agent comes to your home each week to collect the repayment.

Home credit comes with very high interest rates, often around 300% APR or more.

Example

Borrowing £200 for 52 weeks from a doorstep lender would likely cost you about £600 in interest alone.

Borrowing £200 for 52 weeks on a high-interest credit card (40%) would cost you £80 in interest.

As well as interest, you may also have to pay a set-up fee for a doorstep loan.

While the convenience is tempting, home credit can be incredibly expensive. You could end up repaying two to three times what you borrowed, so it’s best to consider this option only as a last resort.

Consider your other options before you turn to home credit. You could try:

• checking you’re getting all the benefits you’re entitled to
• asking your employer for an advance
• if you’re on certain benefits, applying for an interest-free budgeting loan or advance 
• borrowing from a credit union
• arranging an interest-free overdraft 
• using an eligibility checker to see whether you’d be accepted for a credit card without harming your credit score
• looking into whether you can get help from your local council’s household support fund

Having read about the cost, if you still want to apply for home credit, here’s the best way to go about it:

• Borrow only what you need for the shortest time.
• Compare interest rates on the independent website LendersCompared.
• Make sure the lender is authorised by the Financial Conduct Authority.
• Read the contract carefully and ask questions before signing.
• Stick to your repayment plan and reach out to the lender if you’re struggling (there aren’t usually missed payment penalties but your provider might be able to help with a more affordable repayment plan).

To apply, ask an agent to visit you and they’ll assess your application in person.

If approved, you'll receive the cash and a repayment card to track your weekly instalments.