What Is a Doorstep Loan?

A doorstep loan is a form of payday loan for which the lender comes to you. Doorstep loans carry all the risks of a payday loan, but they do have one additional advantage: you do not have to go to the lending office in order to secure the loan.

Advantages of a Doorstep Loan

You need very little to qualify for this loan. You simply must provide your address and proof of income. A doorstep lender will advance you cash immediately once these two items can be verified.

Disadvantages of a Doorstep Loan

You will have to pay a premium for the ease and convenience of a doorstep loan. Typically, interest rates can be as high as 50 percent on the transaction. Late payment fees can also be tremendously high, and many states do not even permit doorstep loans for this reason. Before taking a doorstep loan, be sure you research the lender's lending standards. Further, due to the expense and risk of these loans, it is best to exhaust all other options first and only use this service if you are in a dire financial situation. 


Need Cash Now? Get a Cash Advance