Do you need additional funds to book your travel tickets? Some best offers are going on and you do not want to miss them. However, your holiday budget is yet not ready.
On top of this, your credit scores are not favourable. In this situation, getting loans seems tough, as lenders need that information to assess the likelihood of getting timely payments.
Staying behind in this aspect can be a major setback. In order to get a breakthrough, you must widen your search and approach direct lenders.
They can offer bad credit loans in Ireland with no upfront credit check. Some of the major confusions that are created around such offers are:
- Borrowers might think that this is a trap
- Some of them might misunderstand it as an opportunity to borrow without any checks
- Some of them might think that additional fees will be charged
If you are someone who also has these doubts, this is the right place to get clarity. This blog is going to present the roadmap you can follow to get a holiday loan despite poor credit.
Can you get a loan for a holiday with poor credit?
You will try to emphasise on the chances of getting approved. However, this promise cannot be provided when you are applying for loans.
However, these loans can make it easier for you to qualify. This has been made possible because of the flexible eligibility conditions. Here are the reasons:
- You should have a stable income to support your requirements
- Demonstrate improved financial habits
- Work on upgrading the credit status
- Establish strong saving patterns that can convince the lender
- You must handle recent payments responsibly
Thus, the main concern of the loan provider will be to assess the affordability of the borrower. This can be established from the recent financial behaviour of the borrower. The lender should be confident about the repayment potential of the borrower.
How to get access to holiday loans with bad credit?
You are here because you want to try out the practical steps to get a loan for a holiday with poor credit. Here, everything has been narrowed down.
Dig deeper to know your credit scores
At times, your credit profile does not have a major issue, but a mistake that can be rectified. However, since these errors were staying there, your loan application is getting rejected.
For this reason, you must review your credit report to see if such mistakes are there or not. However, if you get to know about a serious issue, you can start the recovery process at once.
Moreover, you might even ignore applying for loans because of the terrible state of your credit scores. This can save a lot of time, and you will not have to face rejection again and again.
Choose the right lender
Usually, traditional lenders will turn down any loan application from a poor credit borrower. You cannot get a positive reply from them. For this reason, you must search extensively for alternative lenders.
They are direct lenders who will be interested in offering a holiday loan for bad credit. You can apply online for pre-approved offers. This facility has been made available for you for free.
Understand the features of the lenders with careful research. Then, which features are the most beneficial for you?
Get loans with collateral
To improve the chances of loan approval for a holiday, you can get ready to pledge collateral. This will act as an assurance for the lender, who can recover the repayment amount by selling your assets.
This scenario will become a reality if you do not repay loans within the timeline provided by the lender. You will have to bid adieu to your assets if you cannot utilise the buffer time.
However, if you are able to repay loans as per the repayment pattern decided, you will get back your assets. Because of this collateral factor, the lender will see low risk while offering you funds.
Produce a guarantor
Your credit scores are not perfect, but you can bring someone who has a stellar credit profile. They can be your guarantor who should have a steady income track record.
If they earn well, they will be able to cover loan payments you fail to meet on time. They should be able to arrange funds and repay loans on your behalf.
Here also, this factor will lower the lending risk. As a result of it, the lender might be willing to offer loan assistance even when your credit scores are not perfect.
Compare to grab the best offer
An affordable rate with these loans cannot be promised unless you are ready to draw comparisons. The ideal way is to pre-qualify with multiple lenders. Then, you will get to see how the same amount, accompanied by different interest rates, can give out different costs.
Here is an example demonstrated to show how € 5000 for 3 years at different rates of interest can cost you differently.
| APR | Monthly payment | Total repayment | Interest paid |
| 6% | € 152.11 | € 5475.95 | € 475.95 |
| 8% | € 156.68 | € 5640.55 | € 640.55 |
| 10% | € 161.34 | € 5808.09 | € 808.09 |
You can see the importance of comparison. The more you compare, the better your chances of getting closer to the most affordable loan deal.
Your poor credit scores will not snatch away the pre-approval facility. Utilise it even when taking out a holiday loan to minimise the financial burden.
Work on stabilising your financial condition
Poor credit scores indicate that your financial condition is unstable. Some of the payments are still due, and you must work on them immediately.
It might not be possible for you to arrange a large amount of cash at once. Look through your expenses to see if some adjustments can be made.
This will help you unblock some amount of money. This can be used to pay off some portions of the debt.
The bottom line
Increasing your income is another safe way to enhance your financial stability. More money will come in, and you can utilise it to meet pending payments.
