Amara walker February 20, 2024

Emergencies can catch you unawares at any moment. Although many of you know that it is inexorable, you often find yourself in the red. Since you can wait for circumstances to get better, online lenders seem to be the last resort. Banks and traditional lenders do not entertain applications for small expenses especially if your credit rating is bad.

Bad credit loans in Ireland are quite popular among subprime borrowers as they are aimed at funding small emergencies. These loans are quite expensive. It is always recommended to apply for these loans only when you are in dire need of money.

These loans are normally ideal to fund a laptop repair cost that you use for your office work, not when you use it for your entertainment purposes only. These loans can be used for almost all types of funding reasons. The lending amount varies between lenders. While some lenders may sign off on €1,000, others will put a cap on €750. How much you will be able to secure depends on your repaying capacity.

How quickly are bad credit loans approved?

Bad credit loans are aimed at funding small emergencies, and therefore, they are signed off on without further ado. You just need to fill in the application form that will collect your personal and income details.

Once you submit the form, your lender will quickly go through all the details to make a lending decision. Nowadays, lenders are not involved in assessing your application, thanks to AI tools. As your application meets the approval criteria, money is transferred to you in your bank account. You will be liable to make payments as soon as you receive funds.

On the due date, you will be required to clear your whole debt. If you have been put on an installment plan, you will continue to pay down in fixed instalments that can be weekly or monthly, depending on the borrowing sum. As you can get these loans processed instantly, they are also known as instant loans in Ireland.

Are there any other alternatives to instant bad credit loans?

Bad credit loans can be easily availed of from direct lenders, but remember that each lender has criteria. Acceptance of bad credit applications does not mean that your credit score will not be checked, nor does it mean that you can be given the green light even if you have a very poor credit score. Each lender has set a bare minimum of credit score as part of their approval criteria. You will be turned down if your score is less than that.

Further, remember that a hard credit check will be run so that you will lose some credit points. This will make it even harder to apply for a loan next time. Remember that hard inquiries do not drop off your credit report until two years are over. If you are unable to qualify for a bad credit loan in Ireland, you should consider the following alternatives:

  • Quick loans

Quick loans are short-term loans that are a good alternative to bad credit loans. The maximum amount offered by these loans is €1,000. These loans are also processed instantly, almost the same day you put in your loan application, provided you do not submit it in the late evening hours.

The best part of these loans is that they do not require running a hard credit check. It means no hard inquiries will show up on your credit report. However, it does not mean that a lending decision will be made without perusing your credit report. Your lender will run a soft credit check. Soft inquiries do not show up on your credit file, and therefore, you can avoid losing your credit points.

  • Small loans

Small loans are also short-term loans and an alternative to bad credit loans. These cash loans are also aimed at funding only your unforeseen expenses. The lending amount will not be so big, but you can qualify for these loans without taking a toll on your credit rating. As these loans involve a small borrowing sum, you will be required to pay off the debt in full on the due date. While using these loans, make sure you will not fall behind on the payment.

  • No guarantor loans

No guarantor loans have been designed to help subprime borrowers fund unforeseen expenses. While bad credit loans are subject to hard search footprints, no guarantor loans make soft inquiries. Without fear of losing your credit points, you can apply for these loans when you are in need of money.

Tips to improve your credit score

Though you can get the nod for a loan in the face of a bad credit rating, under no circumstances it does encourage you not to put in effort to do up your credit score.

A rule of thumb says that you should always try to improve your credit score so you can avail yourself of lower interest rates. Here are some tips you can do to make your credit score better.

  • You should always try to pay off all your bills on time, including credit card bills and rent. Falling behind on debt payments will wreak havoc on your credit report.
  • You should not owe too much because it will increase your debt-to-income ratio, which, ideally, should not be over 30%.
  • Make sure that you pay off your credit card balance on time. Keeping the balances will take a toll on your budget and your credit score.
  • You can also take out a credit builder loan to improve your credit rating.

The bottom line

Bad credit loans can be easily applied by you in case you need money urgently. These loans can also help improve your credit score if you are given a chance to make payments in fixed instalments. These loans are processed at a faster rate. You will get money directly in your bank account on the same day.