You cannot control every financial situation that comes your way. It could be going cashless at the most critical times. For example, you need to purchase urgent medicines but lack cash. What do you do in such situations?
You seek help from your friends, relatives, family or neighbours. However, what if you live alone in a new city? Who’s there to help you? None. Here, you need something that you can rely upon for surprise expenses.
Doorstep loans are your partner in such situations. It is a financial facility that helps you get cash delivered to your “doorstep”. You don’t need to panic or seek help elsewhere. Explore through and get the money at the preferred address within 35 minutes.
However, it would be better to opt for these loans from a dependable loan provider in the UK. Many lending companies advertise such products, but not all of them are true to their promises. Therefore, it is hard to find the most relevant doorstep loan offer.
It does not require detailed credit and financial assessments. Instead, you may qualify with no credit history or a bank account. However, are cash loans at the door right for everyone? Let’s understand.
What is a doorstep loan? How does it work?
A doorstep loan is an unsecured financial option that helps one get the money immediately at a preferred location. It is ideal to meet emergency or short-term expenses. One can use it for bill payments, motorbike repairs, or paying for groceries. The payout amount stays 1100 for any requirement. Individuals with mobility issues, pensioners, or single mothers working from home may consider it.
The interest remains a little competitive due to the ease of availability. However, one must analyse the payment plan and budget for it. Otherwise, doorstep loans may prove costly. Thus, set direct debits for a fixed instalment payment. It helps you repay the dues timely without affecting your future goals.
For this loan, the loan provider’s representative will land at your door shortly after you apply online. The person analyses the affordability. He may demand proof of income and identity to proceed further. After the general assessment, he provides the agreement for you to analyse.
Choose the repayment term (monthly, weekly, or fortnightly) that aligns with your finances. Provide consent if you find it right and affordable. Later, the loan provider’s representative returns to collect payments according to your repayment term. No doorstep loan provider can force you to pay the dues. However, it is better to clear one to achieve other life goals.
Does a doorstep loan involve a credit check?
No doorstep loans do not involve a credit check. One may get it without a credit history or even a bank account. It solely focuses on the proof of affordability that one provides. Alternatively, some loan providers may conduct checks as part of their policy. If they do, it may emerge as a hard credit check that may affect your credit score temporarily. Yes, future loan providers and credit card companies may see it.
How much do doorstep loans cost?
Doorstep loans are generally termed the most expensive loans in the UK. They come with an APR of 1000% or more. The maximum amount that you get is £1100 with most loan providers. However, you end up paying significantly more than what you borrow.
For example, if you borrow £800, you may pay £1200. Therefore, one must consider other cheaper financial options before landing on doorstep loans. Choose it only if you don’t have any other way to get urgent cash at home.
What are the alternatives to cash loans at the door?
As mentioned above, doorstep loans can prove costly if you need a loan urgently. Therefore, you must analyse a few other financial instruments before tapping them. Here are some alternatives to doorstep loans:
- Instant cash loans
It is ideal if you need an urgent cash loan online. Instant cash loans are like doorstep loans in a way that it is also fast cash facilities that do not require collateral. However, you may get a higher amount than doorstep loan here. You may get up to £5000 for your needs. It is mainly an online cash facility. You may get the money in your account after the loan approval.
- Payday loans
Payday loans are a financial facility that meets any critical short-term need before the “payday.” If you cannot wait until you get the salary to meet the need, tap this. It helps you get up to £1500 immediately into your bank account.
You don’t need a guarantor or collateral to qualify. Instead, having a verified part-time or full-time income proof may help. However, you must pay the dues in a lump sum instead instalment with the next paycheck.
- Guarantor loans
A guarantor-based loan is ideal if you lack a credit score or a bank account. Yes, doorstep loans also do not need a bank account or credit history to qualify. However, a guarantor or a third person on the loan helps you fetch lower interest rates compared to doorstep ones.
Moreover, paying the loan in a timely manner may improve your and the guarantor’s credit scores. The amount you get depends on the guarantor’s credit score and financial management.
Should you opt for a doorstep loan?
A doorstep loan may not be ideal for every situation or person’s financial circumstances. Here are some aspects that you may consider. It will help you know in which conditions you should choose the cash loan at the door:
- You lack a bank account
Most students lack a bank account as they start their financial journey. They usually depend on guardians for financial support. However, critical needs may arise at times. If you are seeking any instant cash possibility without a bank account, this is it. Doorstep loans may help you.
- You lack a credit score or report
A credit score is a 3-digit number that agencies provide to an individual after a financial analysis. However, individuals new to finances hardly have a credit score. In such situations, getting traditional loans is challenging. This is because not having a credit history is akin to bad credit.
Don’t fear. You may still get easy loans for bad credit scores in the form of doorstep loans. It does not call for stellar credit. However, you must have the potential to pay off the dues. No collateral, no documentation, or guarantor is required. Get one now, given proof of basic income.
- You want hard cash at home only
Sometimes, you need to finalise the purchase in cash. However, not having one leads to instant panic. Don’t worry, these cash loans at the door got you. You may get the cash at home within 30-40 minutes, given the exact location. You can use it to fund things like grocery purchases or urgent pipe repairs.
Bottom line
Thus, a doorstep loan facility allows you to get the cash delivered to your home. It is ideal for individuals lacking a bank account or credit history. You don’t need to rush to the ATM, leaving your small child behind. Instead, apply for the loan online and get the money home. You don’t need a guarantor or collateral to qualify. Individuals with a good employment history and proof may get it instantly.
