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10 Popular Doorstep Loans Myths That You Should Know
  • admin
  • May 11, 2023

10 Popular Doorstep Loans Myths That You Should Know        

Loans at doors, an ideal solution to needing quick finance, is embraced by many for small and urgent needs. Though these loans are short-term loans with easy accessibility, individuals share confusion regarding the approval and loan management.

 The myths associated with doorstep loans are the primary reason behind the inhibition. If you often encounter cash needs at your workplace or home, doorstep loans can help. The blog helps uncover the myths and helps analyse how beneficial the loans can be.

Some doorstep loans assumptions you should drop immediately

Doorstep loans are short-term loans ideal for emergencies. However, many individuals do not know this and hurt their credit scores.

It is important to analyse the purpose of any loan before applying. It is essential for emergency and short-term purposes where you get money at your doors. Use it for that purpose. Here are other myths that you need to know the reality behind:

  • Myth 1- Doorstep lending does not require a credit check

It is one of the popular myths that makes one vulnerable to credit drops. Every loan application undergoes a minimal credit check. The check ensures every applicant undergoes criteria before loan approval.

However, if you do not have a credit history, lenders analyse the income and outgoings to provide loans. It is the only exception here. If you have a credit score and history, you get a loan only after credit analysis. The check does not impact the score.

  • Myth 2: Loans at the doors are the same as payday loans

No, that’s not true. Loans at the door and payday loans are different concepts. However, both base income as the primary criteria, the loan functionality differs.

You can spread the loan costs in easy weekly or monthly instalments in doorstep loans. In a payday loan, you pay a one-off payment by the agreement end. You do not split payments here.

Moreover, most payday loan providers do not provide cash at doors. It operates online. However, we provide payday loans at doors if you need them in cash and lack a bank account.

  • Myth 3: Every lender operates like Loans like Provident company

No, every doorstep loan provider has unique eligibility parameters and criteria.

Institutions like Loans like Provident in Ireland ensure standard lending but with limited flexibility. One may qualify but cannot relish the freedom of repayment choice. The terms are strict there.

A direct lender ensures that the situation meets your cash needs without disturbing the finances. The eligibility criteria are simple and easier to qualify for if you have a regular income.

  • Myth 4: One missed payment leads to loan default

There could be any reason behind missing a payment, like a medical emergency, urgent repair, or financial drop. However, one missed payment may increase the interest costs but not imply loan default.

A loan default is when one fails to pay the outstanding amount until the end of the loan agreement. If you reschedule payment or ensure regular payment from then onwards, you can clear the loan without defaulting.

  • Myth 5: Doorstep loans are only for low-income people

If you assume this, it is the right time to drop the misconception. Though it is the most convenient option for the unemployed or individuals with limited salaries needing cash, it is not restricted to that audience frame.

Doorstep loans do not have a particular loan market. It is for anyone needing urgent cash at the doors. He could be an undergraduate or a regular employee. If you have a regular income, you get the loan.

  • Myth 6: You can never overpay on doorstep loans

 Though many lenders do not provide the facility, it is not untrue.

Some money lenders in Dublin provide the facility to make overpayments on doorstep loans. It helps the borrower’s credit history and boost the credit score. It all depends on how well you manage the loan. Overpayments also help save on interest costs.

However, before applying for doorstep loans, check the terms. If the lender provides a loan with no pre-payment charges, pre-pay the amount. Otherwise, it could lead to a penalty.

  • Myth 7: Doorstep loans have hidden fees

No, there are no hidden or secret fees when you contact us for doorstep loans. We ensure transparency in terms and remain upfront with the costs.

 You should always read the terms and conditions mentioned before signing off the loan agreement. If you have any confusion regarding a particular cost or fee, ask. We never hesitate to tell you the truth.

Interest costs are capped. It implies if you make responsible and regular loan payments, you do not pay more than you should. The reason is- regular payments cancel the missed payment fee. It could make the loan costlier.

  • Myth 8: You cannot make payments online

As per doorstep standard lending, the representative provides cash and collects the repayments from the home/office of the borrower. However, it is not necessary. If you want, you can schedule online monthly payments for convenience. All you need is a valid debit card.

You can pay online through your credit card. Moreover, you can set up a direct debit that automatically deducts the payment amount on every due date until the loan term. It helps you ensure regular payments. Likewise, you can resort to manual payments through your account anytime.

  • Myth 9: Doorstep loans are a time-consuming process

No, these have the quickest procedures in comparison to other loans. Here, you just need to fill out an application by providing basic personal details like- name, email Id, contact number, and amount requirement.

Afterwards, we conduct minimal credit checks to ensure your affordability. Lastly, one of our representatives lands your home to provide you with the needed cash. You can get cash the same day within 30-45 minutes at the doors. If you want, you can also get the cash online if you have a valid account number.

  • Myth 10- Doorstep loans are the costliest alternative to getting instant cash

The costs and APR on the loan are competitive. But you can always reduce the overall loan costs by maintaining regular payments. If you want, you can pre-pay the amount. We do not charge anything. It also helps you ensure affordable loans and improves your credit score. We never grant an amount that you cannot afford.

Bottom line

Doorstep loans are best to cater to any unplanned event at your home. However, it may not be suitable for every purpose. Thus, before availing of one, always analyse the functionality and your purpose. Ensuring timely payments help your credit score, and you can qualify for better rates later.

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