There are circumstances when you will need an instant injection of cash. When you come across some emergencies, you cannot wait to arrange cash to meet them. While experts suggest that you must have at least three months’ worth of living expenses, unfortunately, some people are on low wages they fail to have set aside money. Of course, when you do not have an emergency cushion, you will have to borrow money from a direct lender. When you are to borrow money from them, you will have to undergo certain formalities.
You must have a good credit history and a strong income source. Most of the lenders will not approbate your application when your credit rating is not stellar. However, if you need a small amount of money, they will charge high interest rates. Almost all emergency loans come with a small amount of money. Normally, lenders do not lend more than €1,000. Most lenders will cap at €500. These emergency loans do not require a credit check. They are also called urgent loans with bad credit in Ireland.
When you need money during emergencies, you would certainly want it as soon as possible. Now the question is how soon you can borrow money.
It depends on the lender
First off, you need to bear in mind that no lender will wave a magic wand and money will be transferred to your bank account. No matter how urgently you need money, a lender will have to check your credit score and income sources. Before that, you will have to submit the application form.
You are not alone who needs money. Hundreds of applications are submitted in a day. Lenders use AI tools to quickly assess your application. Since hundreds of applications are shortlisted, it takes some time. Once the application is pre-approved, your credit score will be checked.
However, a credit report is not checked when you are borrowing less than €500. It would take some time to fetch your record from the credit reference agencies. Most of the lenders, if the amount is small, will make their lending decision based on the financial details you provide in the application form, and therefore, the process is fast. After the completion of 24 hours, you get money in your bank account.
The same-day turnaround is only possible when you put in the application form in the early morning hours. However, the loan approval process takes 48 hours when a credit score is to be checked and income documents are to be submitted by you. If you are borrowing €500 or more, you will have to prepare yourself to submit your income documents.
A loan office will carefully check whether your budget has the potential to cover your debt payments along with your monthly expenses. Of course, this would take some time. Therefore, a lender might take another working day to process your loan. Every lender has their own policy, so it could be possible that some approve the loan the same day while others approve it the next day.
How can I borrow money immediately?
The next question is; how can I borrow money immediately? If you are in urgent need of money and your savings are low, you should consider the following steps to get money immediately:
- Borrow a small amount of money
Of course, if you borrow a large amount of money, a lender will be sceptical about your repayment capacity. They would peruse your credit score and income sources. Though some lenders may approve up to €1,000, they would run necessary affordability checks. However, when you are to borrow a small amount of money, such as €100 or €200, they do not run credit checks. They make the lending decision based on the income details you provide.
However, note that if you make a default on these loans. They will report it to credit reference agencies. This will lower your credit points and make it extremely difficult to qualify for lower interest rates down the line.
- Look for a lender whose processing speed is high
Some lenders approve a loan application the same day you submit it, while others take another day, even though the borrowing amount is so small. Try to choose a lender who processes loan applications fast, especially those with urgent loans.
- Have all your documents ready
There is no doubt that you will have to submit your identity documents, but apart from that, some lenders will require you to submit income documents, bank statements, pay slips, etc., to support the financial details you provided in your application form. Having all of them ready will save you time, and the loan will be approved faster.
The bottom line
If you need to borrow money immediately, you can borrow up to €1,000, but most lenders prefer not to go beyond €500. If you borrow more than €1,000, you will certainly have to follow stricter criteria and additional formalities that take some time to complete the loan process.
