No bank account? No credit history?
Are you wondering- if doorstep loans can be an alternative for you?
Read on to know further.
Most people get rejected for a bank account due to reasons like- being non-citizen, spelling mistakes in the application form, fraud, criminal charges, etc. After analysing the terms and conditions, the provider may ask you to apply again. What if you encounter a need within that time? How will you approach a lender in the absence of a bank account?
Nearly every loan provider asks for a valid bank account and credit history before approving a loan. If you lack both, he may reject the loan outrightly.
Here, loans like provident or doorstep loans emerge as a quick finance solution for emergencies. You can apply without a bank account or a credit score but get the cash delivered to your home.
If you lack a bank account, credit score, and time to visit the lender, loans to your doors are a workable alternative. Loans Like Provident in Ireland is an unsecured and short-term loan that allows one to borrow up to €1500 for any critical requirement.
These loans are ideal for time-sensitive purposes only. You can use the loan to pay an important bill, repair the breaks, pay the vendor, pay for the last-minute participation fee, etc.
As these are unsecured, the interest rate and other costs stay competitive. The primary cause is one can get cash without worrying about credit or a bank account. It is the reason experts advise avoiding rollovers on doorstep loans. However, one cannot predict finances and hence, skip payments. However, you can reduce the impact of the costs by taking a few measures.
Despite these competitive interest costs, the popularity of doorstep loans is rising.
Why?
It is because one gets the loan amount the same day without much documentation, credit screening, collateral, or guarantor requirement.
The only requirement to qualify for doorstep loans is – relevant and regular income proof. You can pay the amount in easy instalments for up to 12 months.
The agent lands at your home with the money and collects the repayments the same way. It eliminates any requirement of reaching out to the lender and getting cash. You can apply for the same from anywhere and anytime. Here are some ways to manage doorstep loan repayments the best way:
Doorstep loans are fixed-interest loans with fixed monthly repayments. If you partner with the right lender like- Mycreditbucks, you can get the loan terms and costs like- loan arrangement costs, establishment costs, closure fees, etc. Identify if any hidden costs may impact the overall loan cost amount. If it is not clear in the agreement, ask the loan provider.
Once you have clarity over the costs and fees, you can easily align the agreement with current liabilities. Understand whether you can comfortably pay the loan amount with the interest costs with existing income or not.
For example, leave it if you have too many liabilities like rent, bill payments, credit card dues, mortgage payments, payday loans, etc. You have a high chance of missing a payment if your salary covers the needful.
Let’s consider another example-
If earning €45000 a month and monthly liabilities like these accounts for €40000, it may impact the important monthly needs. You can manage repayments if your monthly liabilities are no more than €35000, with the same income parameter.
It is important to ensure enough flexibility as emergency costs may impact the overall budget and, eventually, the repayments. An individual with an outstanding income and limited liabilities can pay off the loan without struggles.
Most individuals borrow extra or low amounts that may not meet the requirement. There is no point in taking another loan to cover the dues and pay additional interest. Improvise and analyze your cash requirement and borrow a flexible amount. It should neither be too low nor too high for what you need.
Borrowing an additional amount implies- high-interest rates, costs, and fees. If you miss a payment here, you may have to pay more than you would have paid by borrowing the right amount. High-interest costs are directly related to paying more. Every lender charges a standard interest rate on missed payments and agreements. Thus, you never pay more than you ought to on doorstep loans.
If you believe you can meet your requirements within €1200, do not apply for €1230. In case of confusion, you can ask experienced lenders or use a loan cost calculator to calculate the costs and decide the right amount to borrow. The calculator lists every cost – interest, and APR per the repayment model. The repayments may vary in digits for- monthly, weekly, or fortnightly payments. Yes, you can choose the repayment structure per your finances and liabilities.
Around 60% of doorstep loan borrowers fail or default due to keeping the financials secret. Inform the lender if you experience a financial downfall and miss a payment. Missing a payment on doorstep loans may impact the well-being of your credit report.
If you took a loan with us, approach us if you miss a payment. We uphold responsible and customer-friendly money lending in Ireland for every income bracket. We help you suggest the best possible solution per your existing finances and liabilities.
With us, you may halt the payments until your finances improve. It would not impact the credit score more severely than with a default. You can skip the missed or late payment charges by informing the lender of your finances. You, in this way, ensure affordable doorstep loan repayment management.
Loans like Provident are the best and easiest way to get cash at home. You can use it for nearly any small purpose without depending on your loved ones for simple cash. Manage the loan repayments to avoid and eliminate any competitive costs impact.
