You can take out a small loan despite a bad credit score. However, interest rates will be slightly higher. You can borrow up to €5,000 but take care of the following factors to make a better chance for your acceptance.
How bad is your credit score
Not everyone with a bad credit score gets a loan at the same interest rate because it depends on the types of loans you owe, the loan amount, the outstanding balance, and the number of overdue payments showing up in your credit report.
You should ideally have as little debt as possible. You should ensure that you do not have an outstanding balance. These factors can restrict the borrowing amount.
A shorter repayment period
Although you can pay down small loans between 6 and 36 months, you might struggle to get that flexibility. Your previous defaults may bring your credibility into question, and as a result, you will likely have to clear the debt faster. If you are looking to apply for an Irish payday loan, you must pay off the debt in full on the due date.
We always suggest improving your credit score before applying for a small loan.
We always suggest improving your credit score before applying for a small loan.