Doorstep loans are different from traditional ones in more than one way. In short, they are loans that come to you, instead of having you go to them. If you’ve never heard of them, you might want to peruse Our Comprehensive Guide to Doorstep Loans, which will get you up to speed with the ins and outs of this very particular type of loan.
While they have many advantages, there are also some disadvantages to consider, which is exactly what this article is going to discuss, in order to help you make up your mind on whether or not they are suitable for your needs.
What are the advantages doorstep loans bring?
First, the good – a doorstep loan brings a series of indisputable pros to the table, mostly related to convenience. When it comes to that, it can’t be beaten. So if that’s where your problem lies, take a look at what these loans can do for you.
1. The entire process is carried out from the comfort of your home
Clearly, as the name suggests, the biggest advantage is the fact that you don’t have to leave the house in order to take out this loan, pay it back, etc. No step of this process requires you to leave the comfort of your home. Now, this is important for a number of reasons:
- You might not have time to run around
- You might have a disability
- You might be an elderly citizen
- You may not be able to procure childcare
These are all perfectly valid reasons that make traditional loans prohibitive to certain categories of people, so the possibility for these loans can be a life-saver. Find out if you’re a good candidate for doorstep loans. Everyone deserves a chance to achieve financial stability, and these loans offer that chance to these people.
2. You don’t have to wait around forever to get your money
Another problem with traditional loans is the very long waiting period. It can take forever from the time you apply and until you finally receive the money. When you’re in a financial pinch and you need money urgently, you (literally) can’t afford to wait around for the bank to process your loan, your payments, and all the bureaucracy that comes with an application.
Loans at your doorstep eliminate this problem by simplifying the entire process and making it as quick and as easy as possible for you to get the money you’ve borrowed. You don’t have to worry about getting your money on time, as someone will be at your house shortly to drop it off when you opt for same day doorstep loans.
3. You get your money in cash
Related to the previous point, part of why loans take so much time to get to you is that they’re bank deposits or transfers and they take time to process in a moment where you don’t have time. In addition, if you want cash, you have to go to the bank and request it and then take the most stressful trip home ever, knowing you have so much money on you.
Having cash loans at your doorstep means that you can use it right away for whatever you need, no matter how big or small. In addition, the fact that you get it delivered to your home means it’s safer for you because you don’t have to be the one walking around with a briefcase full of money.
What are the disadvantages one needs to consider with doorstep loans?
And now, the bad – everything has a drawback, and these loans make no exception. So, what are the hidden risks of taking out a loan like this and do they outweigh the benefits?
1. You can’t borrow very large amounts of money
Because this is a non-traditional loan that doesn’t require good credit, it means the sums of money you have access to aren’t as large as they would be on a regular loan. This type of loan is good when it comes to smaller expenses or maybe some debt, but if you want to make a major purchase, like a house or a car, you will need some other form of financing, because the no credit check doorstep loans are not it.
2. You have to be careful around lending companies
Obviously, when you’re getting a traditional loan from a bank or some other well-known financial institution, there is nothing to worry about, but with cash loans like these, there are less reputable companies that will take advantage, or will put pressure on you when it comes to repayment or in order to make a sale._ It goes without saying that you should thoroughly research the company before you accept money and if anything seems off, walk away.
3. The interest rate is higher than on other loans
Doorstep loans for bad credit and for shorter terms means that the interest rate is going to be higher than on a traditional loan. You lack the security of certain repayment, so the lending entity has to take measures to protect itself.
This can be worth it if you need money urgently and the high interest won’t affect you too much financially, but if affordability of the repayment instalments is an issue, reconsider.
| Doorstep Loan Recap | |
| PRO | CON |
| Can get the loan from home | Smaller amounts of money |
| Short waiting time | Possibility for unreliable lenders |
| Get money in cash | High interest |
In conclusion, a doorstep loan can definitely be the right choice for people who seek relatively small amounts of money, who are happy to repay with high interest and who have limited other options. However, if you think you can’t afford the repayment instalments or you need more money for a big purchase, it may be worth looking into different avenues or alternative financing such as credit cards where you can do a soft search before hand on sites like Money Saving Expert.