A quick loan is an answer to a cash crunch or the requirement for instant funds. This is one of the quickest sources of income. Although there are disadvantages also for this loan, it can be helpful in times of real need.
Many people avail of quick loans but fail to repay. The debt simply keeps piling on from time to time. While the original loan amount remains untouched, they keep on paying the interest rate. Eventually, it becomes a vicious cycle to keep paying interest on your loans.
Before taking any loan, you must clearly understand how much you are borrowing and your repayment terms.
What is a quick loan?
Quick loans in Ireland are usually referred to as an instant source of finance. These loans are available from a lender for unexpected emergencies. These loans are instant that fill up your financial gap too. They work as a bridge and help you to sail through your difficult times easily.
One example of a difficult financial time has a health emergency. On top of it, your credit score is in bad shape. With a poor credit score, getting another loan for such an emergency is even more difficult. Lenders would reject most of your loan applications as they doubt your repayment capability considering your poor credit history.
In Ireland, bad credit loans come to your help in such financial crisis times. These loans can quickly be taken and help you through your emergency.
When should you apply for quick loans?
Not every situation is favourable for quick loans. There are specific situations that may allow you to avail of this kind of funding. These situations are:
- With a steady source of income and a good credit score, it is always easy to avail of loans. You can apply for the loan even if the scores are not so good.
- In case of a financial emergency, you can opt for quick loans. This helps you in covering any kind of expense as the cash is available with you as soon as possible.
Advantages & Disadvantages of Quick Loans
Depending upon the situation of the borrower, they may decide what works for them and what works against them.
- Easy to Apply
In Ireland, quick loans with no guarantor involvement are a good option and easy to apply. The borrower can avail of these loans in any financial situation. There is no tedious application procedure involved. You can go online, fill in some basic details, and click on the apply button.
Then it takes you to the lender’s website, where you are required to fill up a simple but detailed application form with all your details. When the lender verifies the information, the loan amount gets disbursed.
- Easy repayments
Repayments for these loans are quite easy. You can set up your repayment amount according to your budget. If you talk to the lender, you can even set your interest rate and repayment length. These are negotiable if you share a good rapport with your lender.
- Quick turnaround
As the name suggests, the turnaround time is really quick. No more waiting lines. In fact, it simply takes a couple of hours for you to get the required amount in your account. Hence, the name is justified for these loans, which are quick in nature.
When to avoid Quick Loans?
Along with advantages, there are certain downsides too. You can check the following and decide for yourself.
- High-interest rates
With instant approval and quick disbursal, there may be high-interest rates charged on such loans.
As there is no security from the borrower side, the lender may keep themselves on the safer side and charge high-interest rates.
- High risk
Usually, people who do not have regular income and stuck in financial urgency borrow quick loans. Because they aren’t earning, loan repayment on time becomes trickier but more critical. Hence, it is also considered a high-risk loan. The repayment is on the news or not too long.
- Additional expense
With minimum documentation and a simple application process, the lender may charge an origination fee. There could be a processing fee that is added to your interest rate. These additional expenses can be expensive for you and make it difficult for you to avail of these loans.
Things to know to apply for quick loans
- Get them from various sources
Many lenders provide quick loans efficiently in the market. You can shop around whenever you go to a lender and are not satisfied with your terms and conditions.
Since the loan needs to be repaid, comparing the different lenders you are considering is imperative. Once you are convinced of the terms and conditions, you may apply with that lender.
- Repayment terms can vary greatly
The repayment terms in interest rates vary from lender to lender. For instance, if you go to a lender, the lender may give you repayment tenure of one year. On the other hand, the different lenders can offer you an option of two years.
Both the options and ways are different. Check both and whatever is feasible for you, go with that.
- Get quick loan with poor credit score
Even if your credit history or score is poor, quick loans can be availed. A perfect score is not necessary for a quick loan. You are eligible, with a lesser credit score, to apply for these loans.
However, you must fulfil the lender’s requirements. Ensure to meet the eligibility criteria to improve your approval chances.
At some point or the other, everybody needs financial help in life. If there is nobody to help, it can be difficult to fund your urgent expenses. With quick loans, you do not need to go to anybody.
Contact a lender offering quick loans, and your job is done. It is essential to be financially stable on rainy days. However, if you are not able to do it, you can always turn back to quick loans and sail through it.
Hudson is a graduate of banking and finance and works as a financial consultant at MyLoansBoat. He has a professional qualification to counsel people about money management. At MyLoansBoat, his key duties include shortlisting applications of borrowers and counseling them about credit score improvement, building an emergency cushion, retirement funds, and getting rid of debt. He is an ardent reader of finance books and uses the gained knowledge to help people with their finances. He also writes for the company’s blog on various topics like budgeting, investing, saving, debt management, joint finances, and the like. His aim is to dedicate his life to helping people have a debt-free life.