The demand for small loans in Ireland is on the rise because they are offered at flexible terms and conditions. Meeting small unexpected expenses has become plausible with these quick loans. Your repaying capacity rather than your credit score is stressed. Based on your financial details, the size of the loan, which under no circumstances can be more than €1,000, will be decided and lent to you the same day.
There are various types of small loans to help tick you over when you have your back against the wall. Despite having an emergency cushion, you may need to borrow some money to tick over. Among all short-term loans, no guarantor loans on the instant decision in Ireland are quite popular among borrowers. Here are the reasons why they are going mainstream:
You do not need to arrange a guarantor
First of all, they do not require a guarantor. Normally, a lender may ask you to arrange a guarantor with a good credit rating when your credit score is not up to snuff. The good thing is that you do not have to get into the hassle of finding a guarantor to get your loan application approved.
On the other hand, arranging a guarantor is also not a cinch. Hardly will anybody be willing to enter the agreement with you because their credit sore will be on the line if you make a default. A guarantor is obligated to settle your dues when you fail or refuse and, as a result, your credit points plummet. Your guarantor will struggle to qualify for lower interest rates down the line.
A friend of yours will never be indisposed to make guaranteed payments in case you default because this will put their finances at stake. Your family members, like your spouse and parents, should be able to act like guarantors, but make sure that you will not fall behind on payments.
No guarantor loans come with flexible rates
One of the greatest benefits of taking out no guarantor loans is that they come with flexible rates. A lender will go through your repaying capacity to decide on the lending amount. These loans are undoubtedly expensive because of your poor credit rating, which calls your credibility into question. However, lenders will reduce the loan amount to ensure your current budget adds in them without you struggling with other monthly bills.
Various private money lenders in Ireland are out offering these loans, but everyone follows different criteria. Most lenders prefer the full settlement once and for all, while others may be willing to accept payments in instalments, which will be made weekly because of the smaller size.
There is no fear of losing your credit score
No guarantor loans are normally recommended to bad credit borrowers. A lender peruses your credit report to check your past payment behaviour, which leaves hard search footprints. They cannot disappear from your credit report before two years. They are not perceived as a good sign. An inquiry on your credit file suggests that you are not good at financial planning and, therefore, you have to rely on a loan to meet your needs. As a result, you will lose a few credit points.
Because loans without a guarantor do not involve a credit check, you do not need to be worried about losing your credit score. Most lenders run soft inquiries that do not appear on your credit file. Any other lender cannot see them, so credit points do not fall. They will remain the same as they were before applying for the loan.
The thing you must know about no guarantor loans
Undoubtedly, no guarantor loans are becoming popular in Ireland, but there is a lot more to it than meets the eye. On no account can you deny the fact that these loans are expensive. Because these loans are easily available, you are more likely throw caution to the wind. Though a lender will not lend you money without running an affordability check, you will still likely end up with an insurmountable doubt.
- Most times, the payment is made in full
A few lenders will be willing to offer you an instalment repayment period. In most cases the loan size is not more than €500, so you cannot expect a weekly instalment plan. On the due date, you will have to pay back the whole sum along with interest.
It can be difficult to pay back the sum of money. Once you fall behind on payments, late payment fees will add up to your debt. If you continue to miss payments, your account will default, and then the collection agency will start chasing you. They will sue you if you do not settle the debt as soon as possible.
- You can fall into debt
Some lenders are not registered. These lenders provide no guarantor loans to bad credit borrowers at a very high interest rate. You may not realise that till the due date comes. You will miss the payment because you are running out of money. As a result, late payment fees and interest penalties will be added to your account. If you do not take control of your situation, you will soon be in over your head.
Such unethical lenders should be ignored. Make sure you borrow money from a registered lender only. You can get information about their registration on lenders’ websites.
The final word
No guarantor loans in Ireland are becoming popular as they can help fund your small needs instantly. They provide you with a quick injection of cash to meet the unexpected. You do not have to worry about losing your credit points because you can get money based on your repaying capacity.
Make sure you borrow money from a registered lender. Unethical lenders can charge extortionately high interest rates. You are at risk of falling into debt if you do not pay on time.
