Do you usually use credit cards to purchase anything upfront?
Yes, around 8 of 10, individuals use credit cards to purchase anything or to pay a bill.
However, are you aware that credit card is a high-interest debt? Yes, it is. When you buy something on credit, you eventually pay the dues later. Usually, one clears the dues within a month; that’s 30 days. You receive a receipt and pay within the deadline. What if you fail to pay the dues timely?
If you cannot pay it timely, it appears as a default on the loan and the credit provider imposes a late payment or default penalty. It is not healthy for your finances.
Alternatively, individuals are so used to using credit cards that they prefer it for even the smallest requirements like- paying electricity bills or short-term medical treatment. Buying medicines on credit cards gets costly as the provider entails a fee for everything one uses it for.
Thus, it may not be ideal, especially for the short-term and immediate purchase or cash need.
Now you may be thinking:
“If not credit cards, what can I use for urgent cash needs?”
Doorstep loans can be the ideal solution if you need cash quickly.
“Okay, how doorstep loans are better than credit cards?”
To know this, read ahead.
5 reasons doorstep loans are better than credit cards for emergencies
Doorstep loans are the best way to finance critical requirements anytime and anywhere. As the name symbolises, “you get the cash delivered to your “doorstep.” It implies, that you do not have to walk up to anyone for the minimal money requirement, apply online and get it home. You can get the help within 45 minutes depending on the landmark and the details provided.
Moreover, unlike credit cards, you do not share the fear of rejection. If you hold relevant income proof, you get 100% loan approval. Here are other reasons why doorstep loans are a better option than credit cards for small needs:
1) No need for a stellar credit history
Usually, when you approach a credit card provider, they analyse your credit score and management. It helps them predict whether you will be able to pay the dues completely every month or not. It checks the number of dependents, income, and total credit dues. It determines the credit score and the credit card company may deny it if you lack sufficient credit or have poor credit history.
Unlike credit cards, you do not need a credit score for doorstep loans. It implies, whether you have a good, bad, or poor credit history, you can get the loan. It is because here the prime concern is income. If you hold one, you can get it.
2) Relatively low interest rates
Doorstep loans are short-term loans with competitive interest rates and terms. However, you can reduce the loan costs by applying for a lower sum than needed. With credit cards, you do not share the facility to reduce or negotiate the bill. You pay what you ought to. Thus, here doorstep loans are a feasible option.
Moreover, if need doorstep loans in Birmingham and the supported areas, pick the one you can afford. By doing so, you pay low down the line.
3) Fixed repayments throughout the term
On credit cards, you pay the amount you receive as a receipt from the credit card company. It does not remain the same. The amount depends on your credit management, purchases and the penalties over late payments. However, with doorstep loans, you pay a fixed monthly instalment every month. If you need financial flexibility that is easy to get and affordable to pay in instalments, choose doorstep loans.
Here, the costs of the loan remain the same unless you miss a payment. Missing a payment may make it costlier than a credit card. However, you can only borrow up to £1500 here. It implies the repayment money stays far lower than credit cards you can pay back with regular income.
4) Never risk your lender relationships
Credit card providers identify your affordability before providing the credit card. The same happens with doorstep lending. However, credit card bills are usually higher than that of doorstep loans. Missed payments, irregularities or not responding to constant payment notifications and emails may impact the relationship with the credit provider.
It implies you may not get a desirable credit card affordably the next time you reach out to them. They do not provide any additional guidance to clear the debt or manage payments.
Alternatively, in doorstep loans, lenders provide the flexibility to discuss the finances if you cannot pay the dues. One can inform the lender of falling finances even after just missing a payment or 2. In doorstep loans, the lender collects the payment from the home itself. You do not have to walk up to the lender.
Thus, by informing about the inability to pay the payment in advance, skip the charges associated with missed payments. Furthermore, the lender provides personalised guidance to cover the dues with existing financial situations without worries. Precisely, you never risk sabotaging your relationship with the lender and reach out to them again in need.
5) You never overspend
According to a fact, “one usually spends more using a credit card than with cash.” It is because credit card hosts can exceed the limit if you want to. It is advantageous but can impact your finances and credit score later. However, you can increase the limit for an important purchase. If you do so out of habit or for unnecessary purchases, you overspend.
Alternatively, when you apply for doorstep cash loans in Liverpool, popular for football lovers, for your short-term needs, you only get what you realistically need. Experts analyse the purpose and help you with the right amount. Eventually, it prevents you from paying extra towards the loan in the form of interest costs. It helps save more and use it for other life purposes and goals.
Bottom line
Credit cards are ideal for big-ticket purchases like- Air conditioners, washing machines, or business equipment. However, using it for short-term or emergencies may prove troublesome for your finances. Doorstep loans are the best alternative to your critical and small cash needs. You can get it anytime and anywhere with just a click. Get cash to your doors, contact us today.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
