As the name suggests, a ‘doorstep’ loan is a cash loan delivered directly to your doorstep.

Traditionally (and in many cases still nowadays) this literally meant a representative coming to your home to process your application and collect payments.

Of course, in this digital age and further still as a result of the pandemic, ‘doorstep’ loans can also be issued over the phone or online.

People might consider a doorstep loan for a number of different reasons, with the idea of ‘getting cash quickly’ proving very tempting.

Typical reasons for getting a doorstep loan include things like:

  • Home Improvements
  • Paying off debts
  • Buying a car
  • Short Term Expenses (e.g. broken appliances)

There are plenty of other reasons too, where someone may look to a doorstep loan to help finance something urgently.

However, whilst the money may well land into your account quickly enough, the long-term implications of using this type of loan arrangement need to be understood in order to see just how damaging they can be.

For a start, interest payments on doorstep loans can be astronomical, as high as 1557.7% APR * and so it doesn’t take long for debts to spiral out of control.

What was initially a ‘quick fix’ can become a long-term problem. Spiraling debt can have huge ‘knock on’ effects to things like a persons’ credit history, which could affect future lending, and even their mental health.

Despite the questionable ethics of charging such high interest rates, many doorstep lenders are actually registered with the Financial Conduct Authority (FCA).

It may seem difficult to believe, but at least they’re working under some scrutiny.

You can always check a lender’s status, and if they’re registered with the FCA by checking on:


Any doorstep lender who isn’t registered with the FCA is operating illegally, and that’s when we start talking about ‘loan sharks’…

…and sharks always need to be avoided.

You can read more about loan sharks here:


There are other solutions for people who may be considering a doorstep loan, such as using a Credit Union or speaking to your bank about a credit card or bank loan.

As for doorstep loans though, our advice is simple – avoid, avoid, avoid.

*Provident – www.providentpersonalcredit.com via https://creditunion.co.uk/doorstep-loans-loan-sharks-what-they-are-and-why-you-should-avoid-them/

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