What Credit Check Might Mean for a Bad Credit Loan
January 30, 2023

So, are you worried about a credit check?

We’re going to keep things simple here. A credit check is a process that lenders will conduct for more formal reasons. Here is where we need to learn it may help you as you are the borrower.

Loans are given to any borrower against official data on income schemes. Now a credit check comes into play because it is one of the most important processes to gain that official data.

To learn more about the credit check processes for a bad credit loan (or other loans), you will need to learn about the basic definition of a bad credit loan too. 

This post can help you with that. 

Bad Credit Loans and Credit Checks: What’s Actually Going on 

When choosing a loan, you have to understand that a credit check in Ireland is just a process in operation for loan approval. 

We have to define bad credit loans first. A simple; personal bad credit loan is the loan you can get irrespective of your bad credit score. Personal loans don’t need collateral from the borrower. 

One may get this loan with a very low credit score. The procedure follows the income scheme or statement of the borrower for approval. If the income statement is found okay to supply the loan repayments in time, then the direct lender won’t have an issue disbursing the money to the account of the borrower. 

Now, this is the way a bad credit loan works. But why would lenders need the credit score?

And if they need it? Then how do they want it?

We can answer these questions in the points mentioned below:

What Is a Credit Score?

A credit score is but a number that allows you to find out your current credit card status. It works as an indicator to define the maintenance of the credit card in the financial sense.

If you have a good credit score, then it indicates you have worked hard to make payments at the right time. 

When you don’t do that, your credit score falls low, and you can call it a bad credit score.

You might be required to spend extra money with a bad credit score as penalty charges. Although you make these payments, your credit score does not improve. 

To improve your score, you may either need to consolidate your credit debts and make timely payments. Or you may take out a bad credit loan.

A bad credit loan is a type of loan that you may need when you are suffering from a poor credit score. Taking out the loan, you may use the money to repay your credit debts. Then, you can repay the loan at the right time to your lender. All these ‘correct’ financial behavior is going to develop your credit score in no time. 

The Soft Credit Check

The soft credit check is a process most lenders use. They use it as a formal procedure to prevent a borrower from being refused a loan. The soft credit check takes into account a detailed record keeping of the credit card transactional details, i. e. the report and the score, for an official purpose. 

Direct lenders never mandate a soft credit check for offering you the loan. The credit check is made to understand the financial behavior of the borrower to come up with an informed decision about the loan repayment package. Coupled with the main income statement, a soft credit check can give your direct lenders a scope to help you with the most favorable loan option. 

The No Credit Check 

This almost works in the way of the soft credit check. But a loan for bad credit with no credit check from Ireland lenders is sometimes considered a myth. But it is not so. Under certain circumstances, you can get a no-credit-check loan. 

 A simple no-credit-check loan is something you can get if you are not a credit card holder, which means you don’t use a credit card.

Again, if your credit score is good and you are borrowing for the first time, then some lenders may offer a no credit check loan.

Although it is controversial to say so, you may get a no credit check loan with a poor or very poor credit score if your income statement is contrarily strong, standing out independently to manage repayment.

The Hard Credit Check 

You make the hard credit check when the borrower has some serious financial issues.

 A hard credit check, sadly, mandates a loan.

The lender makes a detailed analysis of the credit report and profile along with the score. After considerable verification processes, a lender sanctions a loan based on the credit score. It is a reality that you can get a loan with a hard credit check if you have a good or fair credit score mostly. 

To Conclude

You don’t need to worry about all these credit check matters, though. We are a direct lender and can help you with a bad credit loan with either a soft or a no credit check.

Go through our loans to learn more about them. 

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