Various types of loan products are available on the market, promising to fund people’s small emergency needs. Banks and mainstream financial institutions do not offer such small loans as these are typically aimed at subprime borrowers and are ideal for small expenses like repair costs for your car or laptop.
Fast loans are also small emergency loans, similar to payday, cash, and text loans. The application procedure is the same as any other loan. The application is put in online through the official website of a lender. Once approved, you will get money directly into your bank account.
Fast loans are not a type of exclusive financial product. Payday loans, text loans and emergency loans all come under this category. These loans are advertised as fast as the processing system is so fast that you get approval in minutes. You will get support in the blink of an eye. If you apply in the evening, your application will be processed in the next business working days.
Do fast loans run a credit check?
Some small loans are out there that do not involve a credit check, and payday loans are one of them. This is why they are quickly processed, but fast loans involve a credit check, so they are also processed fast. The good thing is that they do not run a hard credit check, so your credit report is completely safe from hard inquiries.
A lender will run a soft credit check to verify your details; these inquiries do not leave search footprints. They are better than payday loans, as a lender has a better idea about your repaying capacity. You will likely get funds based on your affordability.
Do fast loans carry high interest rates?
The interest rates for fast loans in Ireland are often competitive. As they are aimed at subprime borrowers, it is obvious that high interest rates will be offered. Further, it depends on how bad your credit score and how poor your financial condition is.
According to Experian, a bad credit score ranges between 561 and 720. Of course, you will be imposed a higher interest rate if your credit score is 565 than a borrower with a credit score 650.
Your financial situation will also decide whether or not higher interest rates will be imposed. If a lender finds that you are highly likely to default because of your poor financial condition, they will charge higher interest rates to lower their risk.
Remember that fast loans are normally expensive even though you get them at competitive interest rates, as your credit score could be better. It is suggested that you do research about a lender. Borrow money from a dependable lender.
A few lenders are out there lending money without permission and being authorized by the Central Bank. No lender can provide financial products and services without being registered with the Central Bank. Such lenders can be scammers and loan sharks. Beware of them.
To filter out a registered lender, check if they are registered. Try to know what other people say about it with the help of Google reviews. Spot if they make ridiculous declarations on their website that appear too reasonable to be accurate. Avoid using such scammers because otherwise, you might get trapped in an endless cycle of debt.
How much money can you borrow through fast loans?
Fast loans are small, so the borrowing sum cannot be large. These loans are typically used to finance unforeseen expenses when your savings are small. The maximum amount you can borrow using these loans is €1,000, but most lenders will cap on €700 as these loans are quite expensive, and paying off the debt on the due date can be arduous. The good thing is that you can borrow as little as €100.
Can fast loans help improve your credit score?
Fast loans do not contribute to your credit score; you must clear the dues in full on the due date. You need more than this to check your loyalty towards the debt. However, remember that if you do not pay the debt on time, your lender will immediately inform credit bureaus of your default.
This will sabotage your credit score. A rule of thumb says you should only take out fast loans for emergencies. Do not use these loans for recurring expenditures. They increase the risk of dropping into obligation.
You should keep essential specialities in mind while applying for urgent loans.
There are some important points you should remember if you want to make the most of urgent loans:
Understand the fees and costs involved
It is easy to apply for a loan, especially when you need money urgently, but remember that you must pay processing and origination fees. If you fail to pay back on the due date, late payment fees will be added to your account, and interest will accrue on the outstanding balance until the next due date.
Borrow what you can pay off.
Only borrow what you need, even if you know your repaying capacity. Check your budget to determine if your pocket allows for paying this much money. If you need more than what you need, borrow. You can cover the gap by borrowing from your friends or family.
The final word
Fast loans are quick loans. They will fund your needs without further ado. The good thing is that these loans do not hurt your credit score. However, you should be careful about using these loans as they can be expensive. Your credit score will be badly damaged due to defaults and missed payments. Borrow money only when you need it and can afford to pay it off.
