Can You Get Doorstep Loans with No Credit Check?
Doorstep loans are also known as home collection loans. As the name suggests, you can get the loan at your doorstep. These are small loans that you can get with the utmost ease. Doorstep loans have been designed to help people who do not have a bank account or who wish to avail of the facility of being delivered at their homes.
These loans have been designed to help people who are unemployed and who do not have a functional bank account, the retired who wish to get it delivered at their doorstep, and the disabled who seek more convenience.
Online lending has become very popular when it comes to short term lending, and it provides you with ease that banks often fail because of loads of formalities. When you are to take for an online 1,000 pound loan, you just have to fill in the application form online.
- One of the representatives of the online lender will talk to you to schedule a meeting at your home to discuss your income and credit needs.
- They will visit your home and hand you money instantly if you prove that you can manage to pay back the debt.
Can you get doorstep loans with no credit check?
Many of you must have seen these loans advertised as doorstep loans with no credit check. It allows an interpretation that these loans do not require a credit check. A credit check is an essential aspect of lending as it helps your lender understand your financial behavior.
If your credit score is good, it shows that you stay committed to your financial obligations. If your credit score is poor, it shows that you do not keep up with payments and, as a result, fall into the cycle of outstanding debt.
Whether you are taking out a small loan or a long term loan, a lender will definitely check your credit score.
- A lender will immediately review your application form when you apply for a doorstep loan.
- Based on the details mentioned in the form, if the lender finds that you can afford to borrow money, they will get your credit report from credit reference agencies.
If your credit score is good, the lender’s representative will schedule a meeting with your home to hand you money. Most of the lenders will lend you money only after the perusal of your credit report. Some lenders do not sign off on the doorstep loan if your credit rating is poor. It depends on the policy of the lender.
However, there are some lenders who can be ready to lend you money without running a credit check. If you want to take for a doorstep loan with no credit check, you will have to do online research. Not all lenders will lend you money without a credit check.
These loans are pretty expensive because the lender bears the greater risk. They are lending you money without knowing your financial commitment, and hence they charge high interest.
No credit check facility is utilised by those people who have a poor credit rating. In order to avoid further hard search footprints, they prefer applying for doorstep loans with no credit check.
Is it worth applying for these loans?
You can say that you have a good reason to apply for these loans without a credit check, but the fact is that these loans will cost you a fortune. No credit check loans can be more expensive than bad credit loans. This is why it is not suggested to apply for these loans.
If you have a poor credit rating and you do not want to have hard search footprints shown up on your credit report, you should apply for a loan with a soft credit check.
A soft credit check means the lender will look over your credit report, but no inquiry will show up and hence cannot be seen by other lenders. You will have to ask your lender if they conduct a soft credit check.
You should seek doorstep loans with no credit check only when you have no other alternatives. Experts suggest that you improve your credit rating, so you do not end up borrowing money at a high-interest rate.
The bottom line
You can apply for doorstep loans with no credit check, but they will cost you an arm and a leg owing to high-interest rates. If you have a bad credit rating, you should seek loans with a soft credit search. They will be more affordable than those with no credit check.
Try to improve your credit score, too or have a strong income source to offset the impact of your poor credit rating. You can also arrange a guarantor if the lender does not get convinced about your repaying capacity.
Ailsa Adam is the Editor-in-Chief and former content head at Hugeloanlender. She has been a valuable member of the content strategy team since 2017 due to her abundant experience in the finance sector. Passionate about helping individuals navigate the world of loans and personal finance, she has dedicated herself to acquiring extensive knowledge on various financial products. Before her role at Hugeloanlender,
Ailsa worked as a seasoned journalist and writer, specialising in creating informative blogs and articles on diverse loan types. She is known for her meticulous research and commitment to delivering accurate and engaging content. She holds a degree in MBA Finance and has a keen interest in creative writing and art.
