A doorstep loan is an unsecured short-term loan that is provided at the borrower’s doorstep. The money can also be transferred directly into the bank account of the borrower. This arrangement enables a person to get needed cash without having to leave home. Doorstep loans are one of the no credit check loans available to citizens of the UK.
People use this type of loan to pay recurring or temporary expenses like a credit card, medical, or car repair bill or an insurance premium. Lenders do not take credit history into account so even a person with poor credit can be approved for a doorstep loan. Approval is fast and the money is provided within several hours or the same day. The amount borrowed must be repaid with the next paycheck.
What lenders look at when providing this type of loan are the monthly income and ability to repay the money. Since the lender is taking on more risk by not assessing creditworthiness, the loans APR is usually higher than a traditional bank loan. Consumers can still find a good deal if they do some research on the Internet.
Most lenders do not require applicants to complete any physical documents. Instead, the application is completed online and submitted electronically. Applicants must be citizens of the UK who are at least 18 years old. They should have a regular job with a minimum monthly income of £750. An active bank account with a direct debit feature is also required.
The short-term nature of a doorstep loan makes it suitable for paying emergency expenses. When a borrower is facing a small amount of debt, this loan may also be used to consolidate that. Individuals should not borrow more than they can afford to repay with their next paycheck because doing so could make this loan very expensive.