Need quick cash, but don’t have a bank account? Wondering if doorstep loans might be the right alternative for you? Read on with Quick Loans Express to learn how to get cash loans at your door without a bank account.
If you don’t have a bank account, loans to your door may be another workable alternative. Many people consider bank accounts as part and parcel of daily life, but for millions of people in the UK, this is not the case. Lots of people get rejected when they apply for regular bank accounts, as their poor credit scores can’t withstand the credit check. As a result, plenty of people are left without bank accounts and the conveniences of credit cards. That’s why many are seeking alternatives like cash loans to your door. However, it’s important to ensure these loans don’t cause more problems than they solve.
What Exactly Are Door to Door Loans?
Door loans are precisely what the title suggests. They are little loans from £100 up to £1000 that will arrive to you in cash even though you don’t have a bank account. For individuals living on reduced incomes, these could seem like a good option to make it through the month. However, as always, it’s a good idea to be wary of payday loans with no bank account that seem too good to be true.
Why Do Doorstep Loans have such High Interest Rates?
Doorstep loans have very high rates of interest. This is because these loans are often provided to individuals with no bank account and a bad credit score, so they can be costly. A conventional unsecured loan from a bank would cost, on average, approximately 7 per cent APR. Doorstep loans UK cost significantly more. A fast search online finds doorstep bad credit loans available for an average of 236% APR– that’s almost 34 times higher!
Of course, these loans are generally not available for long-term repayments, so these high APR’s don’t have time to rack up significant costs. Door to door loans are designed to be short term loans for the borrower to repay over a couple of weeks. As long as you can pay promptly, the total amount payable shouldn’t be overly excessive.
Before taking out a loan make sure you’re aware of the amount of time it’s for and that you’ve got a strategy in place to settle the balance. If you are hoping to get paid at the end of the week, but you have invoices which can’t wait, doorstep loans may be an inexpensive option. Just make sure you repay as soon as possible to avoid accumulating excessive interest.
Another drawback of same day loans to your door is their restricted borrowing capacity. These are strictly small-scale lending facilities of a couple of hundred pounds at a time and are meant for you to repay quickly. That might be perfect if you’re seeking a small loans alternative, but they won’t be very helpful if you need a larger amount or something more long term.
Considering Doorstep Loans? A few points to bear in mind:
Repay promptly to avoid excessive interest
Have a clear repayment strategy
Only borrow what you know you can repay
So When Should You Use Cash Loans to your Door?
Despite all these downsides, doorstep loans do have their uses, the most significant being the speed. When you apply for loans to your door same day, there’s no need to wait days or weeks to get approved like you would with a bank. All you need to do is apply online using a business like Provident Home Credit and then wait for the money to arrive.
Additionally, repayment choices are often somewhat flexible, so you can work out a repayment plan that fits your budget.
Still Not Satisfied with Your Options?
Although there are many alternatives if you need a loan without a bank account, you might be feeling limited. You may want to look into opening a basic bank account which is designed for people with bad credit and fairly easy to get approved for. Basic accounts don’t charge fees, and most will even provide you with a debit card to make payments more convenient. Having an account can open up more options for you, and allow you to circumvent personal loans for bad credit without a bank account.
Conclusion – Loans Without a Bank Account
If you need a loan without a bank account, then loans to your door may work for you depending on your situation. You can qualify for doorstep loans even with a poor credit rating, and they may be a good alternative if you need payday loans no bank account. When considering different suppliers, make sure to choose a doorstep lender that is authorised and regulated by the Financial Conduct Authority since many on the market are not.
Although doorstep loans with no credit checks can be tempting if you have exceptionally bad credit, they are generally unsafe as they are not FCA authorised. Spend some time researching to make sure you get the best deal. Regardless of what occurs, never use a loan to fund something extra you are not sure you can afford to repay.
Quick Loans Express brings you the facts about using doorstep loans vs payday loans so consumers can make an informed decision when it comes to different loan options.