payday loans ireland
9 July 2024

A payday loan is often considered a convenient option when a cash emergency hits. These are income-based loan options and do not take much time to be processed. Above all, repaying them need not have to be tougher since you have an upcoming salary in a few days.

Thus, if your savings are not adequate to beat the heat of an emergency, you can turn to these loans. This short-term financing option is supposed to have a short duration for repayment. It could be a concerning aspect for the borrower.

The procedure is indeed easy, but some factors should be taken into consideration. They may either play the role of a positive or negative catalyst. Thus, you should better be careful and watch out for the ways you can amplify your chances of approval.

For example, whether or not you have good credit scores can impact the lending decision. However, there are basically no credit check loans in Ireland. Here, no revelation of your credit history will happen.

This is because you will get loans based on your paycheck. Thus, you can see how some of the lending conditions might vary depending on your financial stability. You can expect more flexibility by applying with a direct lender.

Check how a small amount of € 500 for 14 days will show a different repayment amount and APR with different lenders.

LendersRate of interestRepayment amountAPR
Lender 1€ 102. 27€ 602.27533.26%
Lender 2€ 78.50€ 578.50409.32%
Lender 3€ 65.61€ 565.61342.10%
Lender 4€ 55€ 555286.78%

Read this blog to find out how you can enhance your chances of getting better rates with payday loans.

Optimize your chances of getting payday loans

At the time of applying for loans, you must take account of the factors that lender focuses on. If you are able to convince them, getting favourable rates will be possible. Thus, before borrowing, demystify the areas that can improve your acceptance chances.

This does not mean that you will get loans surely after working on these factors. It is about maximising the likelihood of getting a payday loan in Ireland. It should not be like that you run after confirming the vital factors in the case of one lender.

Make sure that your financial profile becomes eligible to apply for loans with different lenders. The factors that can take you closer to getting a positive response from a payday lender are:

·       Income to prove your affordability

When you are opting for these loans, you must be earning a steady income. You should receive a salary once the month begins. This is because these loans work in this format.

Affordability checks focus on how much you are earning and how skillfully you are handling ongoing requirements. If you are earning suitably, you should not struggle to meet the usual expenses.

These payments getting completed on time will establish your affordability. Based on this factor, you can get a positive reply from the loan provider. Here, they are not ready to adjust to your earnings.

You must prove that repaying loans will not be a tough call for you. For this, you must be saving sufficient money from your salary every month.

·       Borrowing capacity

It defines the limit up to which you can get financial help from lenders. This is the loan amount you can expect to get from the loan provider. This can vary depending on the outcome after the assessment of your financial condition by the lender.

Thus, it is directly proportional to how well you are managing your current financial responsibilities. If you are handling them perfectly, you do not have to worry about anything. If not, you must map out the ways you should be improving your situation from this point.

·       History of your employment

The loan provider will be keen on finding out about the history of employment. If it shows some fluctuations, this might not go down well with the lender. It seems that your requirements are ever-increasing.

For this reason, you always have to look for a new job after a few months. Thus, stability in employment is another thing that the lender expects from the borrower. If you are seriously doing your job and your expenses do not increase abruptly every month, you will stick to a job for a longer duration.

Thus, frequent job changes are not seen as a good factor. It can lower your chances of getting loans.

·       Your credit history

When you are applying for these loans, your credit history has a less significant role to play. Here, your affordability and earning capability are crucial. Thus, you can get accepted by a lender even when you have poor credit scores.

However, it should not be like that you do not try to improve your credit scores. The lender will have no problem if you have poor scores, but they might question you further about credit improvement. Since you are earning a suitable income, you must have tried to rectify your credit scores at the earliest.

The loan provider will be interested to see that you have put in effort. At times, some mistakes in the credit report are responsible for low credit scores. A simple step like reviewing the credit report from time to time can save you from continuing with poor scores.

·       The debt-to-income ratio

It does not matter if you are earning suitably. However, you must take care of the debt payments you are handling. It is a red flag if your income is less than what you have to pay for debts.

This means you have spent a lot of money and still have this habit. Since all of your income is occupied by debt payments, you hardly have the opportunity to save. No savings means a difficult repaying journey.

Try to increase your earnings and reduce your debts at the same time. This will leave a good impression on the lender and make it easy for you to get same-day loans in Ireland.

The bottom line

Choosing the right lender is also critical. Some of them might have strict conditions, while others might have flexible requirements. Find them according to your preferences.

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