Tuesday, April 23, 2024

Getting A Loan Without A Bank Account

There are plenty of reasons that you might like to obtain a loan but not have it paid into your bank account. Maybe you are overdrawn and do not want the loan to be swallowed up by the money you owe to the bank. There again, you might prefer for the transaction to be seen by your bank even if you have a credit balance, as it could affect an application for finance you are planning in the short term.

Of course, it is also perfectly feasible that you do not have a bank account at all. According to the Financial Conduct Authority, around 1.3 million people in the UK do not have a bank account. And yet, these people still need access to finance. The problem is that the main way that people secure personal loans these days is through a financial establishment that will only want to pay into a bank or building society account.

So, regardless of whether you h

ave a bank account or not, how can you secure a loan with this system? The answer is to obtain a doorstep loan, a convenient way of borrowing that many people prefer these days.

What Is A Doorstep Loan?

Firstly, doorstep loans are so-called because they are arranged at your home and the repayments will be collected from you – usually on a weekly basis – by simply calling around and knocking on your door. The big difference between a doorstep loan and an unsecured personal loan from an institution like a bank is that it will be made in cash. This means you won’t have to have the sum you borrow deposited into a bank account, of course.

Why Is A Doorstep Loan Sometimes Preferable?

Obtaining a doorstep loan in cash means you can spend the borrowed sum on whatever you want immediately. Perhaps you need cash to pay for a one-off expense or maybe you could do with a little extra spending money for a trip or holiday. So long as the repayments can be made from your subsequent earnings, a doorstep loan, paid in cash, can be a better option than having it paid into your account. A standing order or a direct debit might collect from your bank account just as the money is paid in so you can’t use it. With a doorstep loan, this won’t be the case.

Of course, doorstep loans make sense if you want to borrow but don’t have a bank account. That said, even if you do have one, a doorstep lender could be the right option for you anyway. Many people find budgeting with cash easier than with their bank account. Equally, a doorstep lender will be there every week to collect each instalment of the repayment. This means you’ll get a more personal service, often from someone you can get to know and trust.

How To Obtain a Doorstep Loan

There are plenty of doorstep loan operators around. Understandably, due to the face-to-face collections that are involved, you’ll need to find one which operates in your area. Always look for a lender which is a member of the Consumer Credit Association, such as Cockle Finance in Essex, for example. This way, you’ll know you are dealing with professionals.

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