It is not a cinch to get a bad credit loan. Your credit report reveals your past payment behaviour. You will struggle to get the nod if it is not up to scratch. However, a few lenders will be willing to give the green light but at the condition of higher interest rates.
Bad credit loans are marketed as emergency loans, and hence, poor credit, in particular, does not get in your way of getting approval. These loans are marketed as instant decision loans. Now, the query is how soon you can get these loans.
Some lenders state that you can get money within a few minutes, while others try to be clearer and more realistic by stating approval within a few minutes “after the completion of the process”. Bad credit loans with instant decisions in Ireland do exist, but this facility does not exist in all circumstances.
Instant decision is generally applicable when you have an emergency
Emergency loans are small loans, so getting the nod for them is easy, even if you have a bad credit rating. The size of these loans will not be more than €1,000, so the approval rate is faster than any other loans. You will get approval on the same day.
However, you will likely get money within an hour if you are looking to apply for a payday loan approved based on your repaying capacity, and no credit check is required. It is important to remember that you cannot get money unless you sign the agreement and email it back to the lender.
Personal loans will take a longer time
Personal loans are not like emergency loans. The size of these loans is quite bigger than the size of emergency loans, and therefore, a lender will carefully assess our application. There are several other factors apart from a credit check and income sources that they would like to look at your credit score, such as the amount of collateral, the need for a guarantor, the credit rating and income sources of a co-applicant in case of a joint loan application and the like.
Personal loans can meet your personal expenses such as weddings, home improvement, etc. A lender would not be able to assess your repaying capacity within the same day, so there is no question about the approval within the same day.
Bad credit personal loans can take a couple of days, at least five to seven days. You will be given a cooling-off period of up to 7 days to decide whether to consent to the terms and conditions or repudiate the contract. The sooner you sign the agreement, the sooner you will get money in your account.
One of the best features of bad credit personal loans is that you have the option to pay off money in case you eventually decide you should not have borrowed. If you pay off the whole money on the same day, you can avoid being imposed on interest rates. A lender may or may not charge some fees. However, this facility is not available with quick loans.
Once you have got money in your bank account, you are supposed to bear the payments. If you decide not to owe money, a prepayment penalty will be charged. However, you can revoke without being imposed any penalties before money is transferred to your account. You can do so by informing your lender on the phone. They might ask you for a reason to do so.
Is it easy to get an instant decision on a bad credit loan?
Well, if you are borrowing money to fund smaller expenses, you can get the nod instantly. This is because the borrowing sum is very small, and the risk involved does not seem to be very high because of a lump sum payment, but if you borrow a larger sum, a lender might hesitate to give the green light. Here is how you can increase options for you when they are limited:
- You should borrow less money. A larger sum will call your repaying capacity into question. Your credit score is already bad, so your lender will find you a highly defaulted borrower.
- You should try to arrange a guarantor with a good credit history. This helps improve the chances for approval, as the lender can call upon the guarantor in case you fail to repay the debt. Having a guarantor will minimise the risk of your lender.
- If it does not seem to be a feasible option, you should apply for a joint bad credit personal loan. A joint application will improve the chances of approval, provided your co-applicant has a good credit score. Both of you will be partly or wholly responsible for the payment of your debt.
Quickest loans that you can get when you have a bad credit rating
Here are some of the loans that you can get as quickly as possible despite a bad credit rating:
- Small cash loans
Small cash loans can meet your unexpected expenses. They can be paid in weekly instalments or a lump sum. The maximum amount of money you can borrow is up to €2,500. These loans will not improve your credit score even if you pay down weekly instalments on time.
- Guarantor loans
The size of guarantor loans is at least €5,000. You must have a guarantor at the time of applying for these loans if you want the same-day payout.
- Logbook loans
You can borrow at least €1,000 with logbook loans by putting down your vehicle as collateral. These loans are secured, so the risk is too high if you make a default.
The final word
Despite a poor credit score, you can get a bad credit loan with the same-day payout. However, if you borrow a larger sum, getting money in your bank account may take a couple of days. Therefore, it depends on the type of loan you have applied for with a bad credit rating.