You turn to online small loans when you are caught unawares by unforeseen expenses and your savings fall short of cash. There are various types of small loans, and they are all addressed as quick loans as the disbursal is quick, mostly within the same day.
Quick loans in Ireland are going mainstream as you do not have to keep waiting to get the nod. These loans are available from online lenders who allow you to fill in the application form to provide your personal and financial details.
Although you are using these loans to fund emergencies, a credit check will be made to ensure you can repay the debt. Quick loans are in demand as they help save time, stress and money.
How quick loans can help save your time
Quick loans are a part of modern lending. Unlike traditional loans, you do not necessarily need to call on the lenders. You can apply for the loan anytime, whether you are travelling on a train or you are relaxing in your bed. All you need is a strong bandwidth.
Lenders do not ask for unnecessary details. Once you submit the application, your lender will quickly get your credit report to see your previous payment behaviour. After the perusal of the report, the lender will send you an agreement stating the borrowing amount and the due date. You will see your account credited once you agree to all terms and conditions.
This whole process just takes a few hours. The best part about quick loans is that you do not need to wait too long to get approval.
- The application is short and relevant, so no hassle is to be borne.
- Apart from a bank statement, no other documents are to be tuned in.
- In the absence of paper legwork, you remain calm throughout the loan process.
How can quick loans prevent you from stress?
Of course, you will not find it stressful when you do not have to embroil yourself in tedious paperwork and related formalities. However, there are other reasons as well why quick loans do no not need to be difficult to manage.
As these loans are small, you do not have to stick to payments for over a period of months. As you pay off the debt once and for all, you will be free from the debt obligation. In the case of long-term loans, you need to adapt your budget to this additional expense, and yet you can fall behind on payments when emergencies administer a severe blow to your finances.
- You can avoid taking on the stress of having missed payments or making a default in case of a quick loan.
- As they are not subject to collateral, you do not need to worry about losing your valuable assets.
- Money lenders in Ireland run a credit check to determine your affordability. They will try their best to lend you the money you can afford to settle, meaning you do not need to be afraid of having fallen into an endless circle of debt.
How quick loans help save your money
Quick loans carry lower interest rates. Although they can be slightly higher in case of a very poor credit rating, they will be affordable after taking into account your whole financial situation. Compared to payday loans, interest rates are genuinely lower. Not to mention, you will save money in total interest you pay on top of what you borrow.
Quick loans are paid back in a lump sum within a very short period, so you can avoid paying too much money as interest. Long-term loans may carry smaller manageable payments, but interest is accrued on the unpaid balance over a period of months and years. Surely, you will end up paying a lot of money as interest. Look at the following example to understand:
|Shorter term||Longer term|
|Repayment term||1 year||2 year|
|Total repayable amount||€2,104.15||€2,203.39|
As you can see in the table above, the debt with a longer repayment term has a smaller monthly payment, which is undoubtedly much easier to manage than the short-term loan, but this costs you almost double. This is how quick loans can save a lot of money in interest.
A large lump sum payment can be scary, but a few lenders will allow you to repay the debt in weekly instalments. You can easily adjust your budget to monthly payments.
“Quick loans are not just more affordable than long-term loans, but they are more favourable than credit cards.” When you need a small sum of money, you can use your credit card limit as well. But you will have to pay higher interest.
Interest is accrued onto your account per day basis, which may be more expensive than payday loans with interest rates capped at 0.8% per day.
Your credit score can also determine if you will save money on interest. “Of course, a good credit score will let you enjoy lower interest rates, and when your credit score is bad, interest rates will be higher.”
To wrap up
There are certain benefits that you can avail of using quick loans, but when it comes to taking on an affordable loan, it depends on multiple factors.
Although you can say you can manage these loans with ease, a lot of people find them a cause for being in an endless debt spiral.
“To avoid messing with your finances, you should create a budget and build an emergency cushion to fall back on when you are in a tight spot.” It will work to your advantage when you are away from loans.
Debt is expensive regardless of your credit history. Turn to them when you have no other way to tackle your situation. Take advice from a financial consultant if you are confused. They can help you make the right decision.
James Wince is the lead author and financial expert at MyLoansBoat. With a decade-long journey in the financial market, he has actually amassed comprehensive understanding and hands-on experience, which he gives his informative, useful, and reader-friendly posts. Covering a broad spectrum of financial subjects – from personal loans to business financing, mortgage refinancing to debt consolidation- James has an incredible capability to break down complicated financial lingo into understandable language, permitting readers to make knowledgeable choices. Enthusiastic about financial literacy, James’s objective is to browse our readers through the frequently frustrating seas of finance.