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What Should You Do After Getting Credit Refusal Due to COVID Impact?

Since the Covid-19 started its dangerous impact all over the world, people knew that they would face grim financial consequences. There has been very little change as last year and in 2021.

Individuals are struggling with their finances. Many have lost their jobs, and while many trapped in the debt cycle.

The pandemic hit hard the people, and they are facing unexpected effects of it.

The most frightening of them is the credit refusal. According to a recent survey, almost one-fifth of the loan applications have been denied financial products since 2020.

Furthermore, no one knows when it will end. However, there has to be some solution to it.

People now need complete and assured financial help. Is there any assistance available?

The answer is ‘yes.

In this blog, we will discuss the solution available. It is none other than the private loan agencies in Ireland.

Why the Private Lending Marketplace?

Questions must be there because traditional lenders are already sitting there. They have been providing helping financially struggling people even in this pandemic period too.

What is the point in approaching the private players in the lending market?

Well, there must be some difference between the financial products of both traditional and new-age lenders. The biggest of them is flexibility and instantaneous in the loan procedures.

As compared to the banks and other traditional lending institutions, online lenders are quick in approaching multiple loan applications.

As everyone knows, the most significant impact of the pandemic is the financial emergency. Everyone seems in urgency to take out external funding help. They may be earned full-time or part-time income, but still, they need more funds to survive.

Loans that come immediately are the need of the current time.

How Private Loan Agencies in Ireland Favour the Needy Individuals?

The growing preference of the new-age lenders over the traditional ones has many reasons. We can refer to these reasons as the advantages for the people who need instant funding.

There are three utmost reasons why private credit providers in Ireland are gaining the upper hand. These are Unsecured Funding, Doorstep Funding and Instant Funding.

Unsecured Funding

Over the years, people apply for loans in two ways: secured and unsecured. In the secured loans, they have to pledge an asset as loan collateral and receive the loan benefits.

In the unsecured loans, no asset is needed to pledge, and the fund disbursal comes early. However, the interest rates will be higher, but borrowers feel this option more comfortable than secured ones.

When pandemic creates urgency in the individuals’ finances, these unsecured loans can be helpful because of their fast nature.

  • Your any asset is not at risk, as there is no need to pledge it;
  • With no verification of the collateral involved in the process, you have better chances of assured and quick funding access;
  • As these are short-term loans, the lenders may accept the applications of people with bad credit scores too;
  • Unlike credit refusal by mainstream lenders, these loans create the chances of guaranteed approval because of the small amount is allowed to borrow;
  • Despite the higher interest rates, tenants still prefer unsecured loans as they have nothing to guarantee.

Doorstep Funding

Convenience is the key, which the pandemic has snatched from the individuals. COVID might not allow you to relax, but the online lending marketplace in Ireland may assure peace of mind.

Some private loan agencies offer doorstep funding for those who need immediate funding access. These are also called cash loans or cash-at-the-door service.

Borrowers do not need to go anywhere as they can apply for loans from their home. The lender sends its representative to your home and processes the loan. Once everything is confirmed, you receive the money on the spot.

  • This option is ideal for those who are physically disabled or those unemployed who need more time for finding out the job;
  • There is nothing to worry about the repayments because the same lender’s representative comes to your home for collecting the repayments;
  • There is no chance of missing the repayments and more opportunities of improving the credit scores.

Despite these advantages, you should know that doorstep funding includes very high-interest rates. It may add more to your pandemic woes.

Instant Funding

Instant access of the funds is what the demand of current time. Pandemic has become a synonym of financial emergency, and credit refusal adds a more bitter flavour.

The private loan agencies have come up as the ideal alternative, and people have advantages like instant 24 hour loans.

Yes, as soon as you submit your loan application, the lender starts working on it to ensure fund disbursal within one business day. It becomes possible due to the FinTech concept. Everything has come online, allowing borrowers to get instant financial assistance.

  • Minimum paperwork is needed, and the only online procedure is in practice;
  • You have the option of applying through your Smartphone during extreme emergencies;
  • The formalities like no guarantor and no collateral usually not involved;
  • Small funding allows approval despite bad credit or very poor credit scores.

Again, you will be liable to pay higher interest rates to get instant funding.

A Comparative Conclusion

COVID has diminished all the financial progress. Due to their credit issue, they get credit refusal worsening their financial situation. In such circumstance, private loan agencies in Ireland have raised some hopes.

Indeed, you have multiple advantages with them, but there are some risks as well.

First, you have to pay higher interest rates;

Second, you are generally unaware of which lender is reliable or not.

You have two ways to find out the solutions for these confusions. One is to approach a financial adviser, but you have to pay extra fees for this. Second, you can do online research and use loan calculators to find the best deals from a reliable lender.

Credit refusal does not bother you too much if you can get the appropriate financial support from new-age lenders. The situation has not improved drastically yet. Be careful while moving every step ahead.

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