- November 2, 2019
In today’s life, where we are dealing with numerous expenses, maintaining your finance is very challenging for anyone. Missing a few payments, overusing your credit card is enough to hamper your creditworthiness. Now, having a good credit score is very important as it paves the way for you to avail the financial product in future. But, if you could not maintain the score due to unfortunate events in your life, then it’s time to buckle up your seatbelt.
Loans with bad credit; is it possible?
It is important to understand that credit rating is not permanent. It keeps changing as per your financial circumstances in your life and mainly your decisions. So, if you are struggling with bad credit, then this doesn’t mean the end of the world. There are lenders in the market who offers bad credit loans in Ireland. Yes, you heard it right! There is a possibility to get funds with poor credit, but you must know how to use it for your own good.
Such loans can be applied by people who are involved in any of the following cases:
- CCJ case (County court’s judgement)
- Missed repayments
- People facing bankruptcy
- People under too much debt
- Facing financial crisis
How much can I apply for bad credit loans?
Bad credit loans are ideal during the time of urgent situations where you are unable to get debt because of your poor credit score. It becomes very difficult to seek financial assistance when your credit rating is poor. Most of the lenders will likely reject your loan application after seeing your score. However, the few lenders who offer bad credit loans consider other financial factors such as:
- Income status
- Employment history
- Credit utilization ratio
- Guarantor requirement
Also, this falls into the category of the short term debt, so the amount will be lower than the other long term debt. And, the amount will vary from lender to lender whom you will be approaching for the fund.
Boost your credit score with bad credit loans
One of the main benefits of availing bad credit loans is that the timely payment of the loan can help you boost your credit score. Hence, it will improve your creditworthiness and your chance of getting the approval of a bigger loan in the future. You can avail bad credit loans at comparatively lower interest rate provided that all other financial aspects are strong. If you are applying online, you can compare the interest rate of all the lenders in the market and then choose the most suitable one.
There is another great usage of bad credit funding, and that is if you are struggling with your past debts, then you can use it to consolidate your debts. This can act as a great relief as you will get the opportunity to get rid of your past debts faster.
Things to keep in mind when applying for bad credit loans
- Yes, you are going through a bad phase, and you need financial assistance, but you should not take the first offer that you get. Do the complete research of the market and search for the most reputed lender that suits your requirement. Go with the lender who is offering you the most flexible term and competitive interest rate.
- Know whether you have to provide collateral to get the loan. Chances will be there that the lender might be asking to provide security that can be any of your valuable assets. Other than that, you could even be asked to provide a deposit in cash to get the approval of the loan.
- Most importantly, there are lenders who provide guaranteed bad credit loans for approval. The lender could ask you to present a guarantor who will be legally responsible if you miss the repayment.
So, this was everything that you need to know about bad credit loans the numerous ways it can help you. Making the timely repayment can help you get back on the financial track.