Amara walker September 27, 2023

If you are reading this post, then chances are you have already known what a bad credit score is. With that, you do not get good financial management. If you run a business or you are thinking of investments, then you might have to rethink your decisions all because of that low credit score. 

There is more than one consequence with a poor credit score. You literally have to fight it until it gets better, or it improves. In this post, we will directly look at the problems bad credit scores create. Then, we may find out a few strategic ways to control your credit score with a loan from our end.

It Won’t Give You Access to Financial Rewards 

As you know, you get financial perks with the services you have been using. In fact, you are eligible to get the same rewards if you use a credit card. However, you must use it well.

These rewards we are speaking about include rewards, discount offers, vouchers, cashback, free purchases, free shipping charges, and many more. When you have a good credit score, you are naturally awarded these options by different businesses. As mentioned earlier, your credit card can also offer you such perks. With a bad credit score, these benefits might not reach you. Plus, there are other expenses you need to count, which we discuss in the next point. 

Extra Fees 

The credit score going downhill shows that your financial status is not good at the moment. It may also indicate that your financial management needs to improve. Sometimes, bad credit scores also happen for not knowing about regulations. For example, you can suffer a bad credit score when your credit card spending gets more than your credit limit. 

The person or business then needs to pay penalty charges for a low credit score. There might be increased credit card fees, and APR (Annual Percentage Rate). You might also be charged fees for buying something with your credit card only because your score is low. Eventually, you pay extra for your credit card no matter where you use it or what you want to buy with it. 

Difficulties Getting a Loan

Poor credit score is connected to difficulties getting credit. If you look for a loan and your credit score is low, then you might find getting fewer options. People with bad credit scores often have to pay very high interest rates with a loan, which is not financially helpful. Again, this issue may increase or intensify with secured loan options such as a car loan or a mortgage.

This, however, is not the case with us. Even with a poor credit score, you can get a loan from us. In fact, it will be easier for you to make bad credit loans instant decision. In Irelandany private lender or a direct lender organisation such as ours takes account of your income and checks whether or not you can repay the loan in set instalments. Therefore, we approve the loan based on your income. We take your credit score for a soft credit check. It does not control the lending process. 

  • You’ll Have a Problem Getting Rent 

A poor credit score shows to your landlord that you may not be able to pay rent in time. It can lead to financial issues for your landlord. If your credit score is very low, and you have unpaid debt, then it might be difficult for you to get rental homes easily. 

This problem might exist with landlords where you see more than one person looking for rent. However, that situation might be technically sound. In reality, a bad credit score may not help you get rent quickly or, let’s put it, at a fair cost. 

The Same Issue Might Happen with Insurance 

As per records, a bad credit score may not be a huge problem with life insurance policies. Nevertheless, it is not the only insurance a person may want.

When getting other sorts of insurance policies, such as car insurance, health insurance, home insurance, etc., insurance companies calculate your credit score. They have a significant and specific way to calculate your credit score.

The consequences are predictable. You may either be eligible for only a few policies, or the premium charges can become high.

Increased Utility Deposits 

Let’s say you have a bad credit score. You want to install a router or a server from an Internet company. If you have a bad credit score, you may be required to deposit an amount of money.  

This money serves as a contingency plan for your providers. Due to your bad credit rating, these companies may take this deposit if, in the future, you miss out on paying bills. 

How to Control a Bad Credit Score Using a Bad Credit Loan?

It is easy and simple if you pay attention to the strategies we have for you. Using them, you can get a significant improvement in your credit score. You can thank us later.

  • First, arrange your income details and pay extra attention to update your credit score. Find out if the score you have is correctly rectified by cross-checking it yourself. 
  • Understand your present income and learn how much loan amount you can manage repaying. You may use a loan calculator to find out your instalment amounts. We offer more than one repayment package for a single loan. Use all of them with a loan calculator to find out the most affordable loan package. If you still can’t get a cheap loan, reduce your loan amount to try again. 
  • When you find your loan, apply for it and receive the money within a day. If you have debt, carefully repay it first in the correct amount. Also, pay your pending bills. 
  • Now, repay your bad credit loan timely to your lender. You can use automation or reminders not to miss paying instalments in the right amount. Be sure of the repayment amount, too, by repetitive checking or calculation. 

If you repay your loan in time, it automatically gets translated as good credit behaviour. The result is obvious. You get an uplifted credit score. 

To Conclude

If you want to know more about online loans in Ireland, then we might be able to discuss them with you in an interesting way. For that, you can reach out to us at any moment. Hope this post was of some assistance to you. If you need more help, then you now know where to find us. We will be happy to help you.