Imagine this-
You plan to invite a few of your friends on a Saturday. It's been months since you met them, and finally, everyone is ready to join you for a laugh or two. You feel excited as a host and wish to ensure everything is in place. You prepare a list for the special get-together. The groceries, the sweet dish, the menu, everything is in place. And the bell rang! You welcome your people and greet them like you did for the first time.
The moment you walk into the Kitchen to preheat the oven, it does not work. You try multiple times, but to no avail. Now, you panic, "How will I heat the dishes you prepared?" You contact the repair company and check for cash. You are to receive the salary and lack cash at home.
You can neither go to the ATM, leaving guests behind. So, how will you counter here? It is where urgent doorstep loans prove the best fit. You can get small cash at your doorstep quickly for any unplanned expenses. The best part is – you don’t need a guarantor, collateral, or even a bank account to get one. You can reveal the income proof and get the cash for oven repair. It’s that simple! It could save you from the moment of embarrassment! Moreover, you can host the best freshly served dishes without worries.
What are doorstep loans?
A doorstep loan is a short-term loan that involves delivering the cash to your home. One can tap the loan in case of extreme home emergencies. It could be paying a grocery vendor, a medical consultation, or home repairs. In this, you apply for the loan online, and a lender’s representative delivers the cash at home.
Most doorstep loan companies begin the process online. However, they wish to meet the borrower in person to issue the funds responsibly. One may get up to £1000 for any need and is repayable in weekly or monthly instalments.
The interest rates on these loans are quite high, at about 400%. Thus, borrowing responsibly is important. Once you get the cash, you must repay the dues according to the payment schedule. You can either do it online or give it to the lender’s representative. Yes, these loans are also known as home collection loans, where the loan representative lands at your doorstep for the monthly instalment.
Do doorstep loans involve a credit check?
Yes, every responsible and legally operating loan provider conducts a basic credit check. It helps determine how much a borrower can afford to repay, given the circumstances. It does not affect your credit score.
Loan providers consider aspects- income, employment history, and residential history to determine the amount suitable. It is a mandatory check you must go through to get a doorstep loan. It is beneficial for the loan provider and the borrower alike. It helps you understand how much you should borrow, given other liabilities. It must not affect your basic budget and living requirements.
Why are cash loans at the door popular in the UK?
You may like a doorstep loan for multiple reasons. The first is the ease of availability. You do not need to go through complicated documentation or asset complications to get a loan. Instead, you get the approval if you can afford the loan. The next best thing is that anyone from a student to a retiree may get a cash loan at the door. It may help serve multiple purposes. Here are other reasons people love it:
a) Quick loan approvals
You do not have to have it for the entire day to receive the funds. Instead, the loan application process is easy and quick. You may get these 10-minute loans with no credit check into your bank account after a quick analysis. The prime purpose of the doorstep loans is to help individuals meet their emergency needs quickly. Thus, an optimised procedure without documentation or detailing is helpful.
b) No need for a bank account
The best part about these loans is that you can apply even if you lack a valid bank account. It could be possible if you recently relocated to the UK for a purpose. However, don’t worry, you may get the loan if you hold sufficient income to meet the loan instalments comfortably.
c) Easy to budget for monthly payments
As the payout on a doorstep loan stays low, the monthly payments are low as well. They remain fixed over the loan term if you don’t skip a payment. Thus, you always know how much you must pay the next month. You can set up a direct debit or save money according to your convenience. If you struggle to pay within the current module, you can reschedule it. It helps you pay according to what you can afford.
d) No pressure to repay the dues
Yes, doorstep loan providers may not pressurise a borrower into paying the dues. It is a high-interest loan where the payout is too low. Therefore, it is not mandatory to clear the debts. However, non-repayment may affect your other goals. Your credit score remains the same, but it may improve if you repay the loan.
e) No bad credit worries
If you have a bad credit score, you don’t need to worry. You may still qualify for the loan, as these loans do not mandate a credit score as the primary approval criterion. Instead, you may qualify by proving your affordability for a loan.
How to get a doorstep loan without a credit check?
Yes, you can begin by analysing your cash needs. Prefer tapping some savings (if you have) to close the need. It is because the loan should be the last resort. If you cannot find enough, check how much to borrow. You may need £800, but borrow only £700 if you can afford to repay that much only. Otherwise, non-repayments may make the loan costly for you. Here are some steps to follow to get a doorstep loan without a credit check:
1) Pre-qualify to check approximate costs
After finalising the amount you need, compare your options. These loans are high-interest financial facilities. Therefore, always check the APR, interest rates, and additional costs before applying. Most loan providers keep terms transparent, but you may spot hidden costs. Therefore, pre-qualify to understand the basic or approximate loan costs. It helps you know whether you can afford the loan.
2) Choose the one with the lowest APR
After comparing your options with pre-qualification, choose the low APR loan. It means if the Annual Percentage Rate on a loan is low, you eventually pay less on the loan. Enquire about the representative and the actual rate that you get. The latter one depends on the credit assessment. The actual rate you get depends on your
ÿ Income
ÿ monthly expenses
ÿ pending debts.
You can reduce the costs by applying for a lower amount than what you need.
3) Apply by providing basic details
Once you spot the right quote, identify the details to provide on an application form. You must provide your name, contact number, email, loan amount, and purpose (if mentioned) as part of the application. Re-analyse the details before clicking “APPLY”.
4) Get money at the doors
After the loan provider receives the application, he conducts a basic check. He may demand an income, ID, and residence proof to proceed further. If you qualify, the lender’s representative will land at your door with cash. He verifies the details before handing over the money. If he finds it fine, you get the cash immediately. This whole process may take 45 minutes to an hour.
5) Repay the dues timely
Lastly, you must make payments on the loan as per the loan agreement. It lists the monthly instalment amount that you must pay to complete the loan. You can set up direct debits or save cash to pay the lender’s representative every month.
Doorstep loans are the best way to meet any of your emergencies. It does not require one to have a credit score, a bank account, or to provide collateral. Instead, one may qualify by proving the affordability of the loan. You must have a valid earning and employment proof. It helps determine the amount you can get on the loan. Likewise, instalments stay small, easy to manage for someone with a low but regular income.
