Wed. Sep 27th, 2023

When your savings are exhausting, and income is not much to protect your savings, you must see
towards external sources of obtaining urgent funds.
Of course, loans can be that option. Still, have you prepared yourself for borrowing?
When you opt for any kind of loan, you want to put your best foot forward so that your application doesn’t get rejected.
Acceptance or rejection doesn’t depend solely on your credit score (a good score escalates the chances,
of course), but other factors also play a vital role in deciding your loan future.
If you fail to understand what your lender, bank, or any other financial institution is looking for, you will fall short in taking care of your financial needs during emergencies.
To make sure that you don’t face a surprise loan application denial, we are here to make your loan
journey easy.

Factors that Money Lenders Focus upon on Loan Applications

Below-mentioned are the eight important factors that you should be in your knowledge, especially when
you have made the decision on quick online loans in Ireland.

  1. Credit report:
    Nearly all the moneylenders gauge your credit report to get insights into borrowed money management.
    A poor credit score indicates an extreme default risk, which frights off moneylenders on not getting their money back.
    By analysing your creditworthiness, they understand that they will get back what they lent you.
    The score ranges from 300 to 850. The higher you score, the better chances of your loan getting
    sanctioned. Moneylenders don’t disclose the minimum amount of credit scores. If you want a higher
    success rate, aim at scoring between 700 and 800.
  2. Employment history:
    Of course, your moneylender will want to know that will you be able to repay what you have borrowed. They will see whether you have a stable income or not. You need to be able to prove that you have
    steady employment just to gain the assurance that you can keep up with the repayments.

Individuals who work only a half of the year or are self-employed or fresher’s who are just getting their
career underway may have a tough time getting a loan.

  1. Debt-to-income ratio
    Your debt-to-income ratio is closely related to your financial situation. Moneylenders carefully look at your
    debt obligations every month. They prefer a low debt-to-income ratio. If it is greater than 45%, that means
    it takes up 45% of your monthly income, mostly. This much debt ratio is not acceptable by lenders.
    You can still get an online quick loan in Ireland with a high debt-to-income ratio if your income and credit
    score is good. Few lenders don’t like taking a risk so that they can turn down your loan request. Here you
    can work towards paying off your debts, if any, and make your debt ratio lower than 43% before applying
    for quick loans.
  2. Value of collateral
    Collateral is something you agree to give your moneylender in case you fail to keep up with your
    repayments. Loans with collateral security are secured loans, and, loans where no collateral is needed,
    are called unsecured loans. Secured loans comparatively have lower interest rates than unsecured loans.
    The value of collateral decides the amount of money you get in a loan. Your moneylender requires a
    guarantee to bring back the sum of money they have lent to you.
  3. Amount of down payment
    You are required to give a down payment on some loans. The amount of down payment highly
    determines the sum of money you need to borrow. For example, if you take a car loan and pay upfront,
    you don’t need to borrow much amount from the moneylenders.
    In some cases, you get a loan without paying down cash or paying a small down payment.
  4. Liquidity of assets
    As you already know, moneylenders check everything about your finance. They like to check whether
    you have savings or cash in a money market account or not. Also, the assets you own to ensure that in
    case you are no longer an employed person, you will be repaying your debt or not. If you don’t have many
    liquid assets, you may be obliged to pay a higher interest rate.
  5. Term of loan:
    Your financial situation may not change in 2 or 3 years, but it will become better in the course of 10 years.
    It may become good or get worse also, so the moneylender mostly prefers to lend money for a shorter
    period of time because you are more likely to pay it back in the future.

A quick and short-term loan is favourable for you as you are able to save money because you will pay the
borrowed money in a few years.

  1. Recent applications
    If you have already applied to several places at the same time, then this is going to show a red flag to
    your application. Lenders have full access to see how much credit you have applied recently, as these
    inquiries stay in records for at least two years. So, avoid making this mistake because hard inquiry takes
    place on such credit reports.
    Before taking for loans with bad credit, it is important to understand all the factors that moneylender
    considers while evaluating their loan application. Do take a closer look at the factors mentioned because
    they highly impact the likelihood of getting a loan or not.


When you apply for a loan, you want to get your application to be accepted because there is nothing
more frustrating than a lender rejecting your application request. Your credit score is not among the only
option that moneylenders consider while deciding on accepting your loan request. Various other factors
help your application stand out and get maximum chances of getting approved.
If you keep in mind all the factors which are mentioned above, then it can highly increase your odds of
success. Go through all the points, and if you think any of the factors mentioned earlier may diminish the
chance of your loan approval, then work on them before applying for a loan.

Description: Put your best foot forward while applying for loans by gaining a fair understanding of what
lenders want and getting positive results with less turnaround time.

By admin