Are you planning to borrow money because of some urgent payouts? However, you are sceptical about the pricing as you want to keep it within your limit. For this reason, you might look for a low-cost loan option or could be a 0% credit card.
There is no straightforward answer to which funding solution will fit the bill for you. This is because the cost has a lot to do with the loan amount you want to borrow. At the same time, it can elongate or decrease depending on the repayment tenure you have opted for.
The interest rate is influenced by the loan size and, to some extent, by your credit scores. Although direct lenders would like to keep it practical, it is only after they are convinced of your affordability.
Therefore, the ideal thing to do in this circumstance is to compare and see how you can curtail the price. Besides, you can think of refinancing any existing loan to continue with better rates. To know more about the different financing options, you can access and delve deeper.
First, grab information about your ongoing requirements. This is crucial, or you may not be able to figure out the loan amount you should apply for. Personal loans and credit cards are two of the traditional ways people use to borrow money.
Now, you might have that one typical question in your mind. Where can you find the cheapest personal loan in Ireland? It will depend on the various lending sources you will explore.
For the same amount and repayment term, you can get variable APR rates from different lenders. Check how the loan pricing works for these loans.
|
APR |
Loan amount |
Tenure |
Monthly payments |
Total paid |
|
6% |
€ 4000 |
2 years |
€ 177.28 |
€ 4254.78 |
|
15% |
€ 4000 |
2 years |
€ 193.95 |
€ 4654.72 |
|
25% |
€ 4000 |
2 years |
€ 213.49 |
€ 5123.67 |
|
36% |
€ 4000 |
2 years |
€ 236.19 |
€ 5668.55 |
Now, it does not need to be only loans and credit cards. If you have an active bank account, you can enquire about its overdraft facility at the same time. While getting external funds, you must not overlook the repayment plan.
Without it, repaying on time will be tricky, and you might end up defaulting. Be careful and analyse each option carefully.
Do you already have a credit card? In that case, you can try to send some amount of cash from your card to your bank account. This lets you have the required money right on time and without chasing suitable deals with loans.
As you can see, this is a pretty much smooth way to fetch money during a crisis. Above all, this method does not cost you more than a typical personal loan. With this option, you do not even bother to risk your home or car.
To do so, you will need to get a 0% money transfer credit card. It is not that you can utilise this facility of a credit card after meeting some fees. They are usually charged for transferring the amount.
A normal credit card might not offer this same facility at a better price. Thus, it would be better for you to consider having a money transfer credit card.
Here, you will be opting for a collateral-free loan option. Face no demand for assets to get a short-term amount for a trivial urgency. For unsecured loans in Ireland, you do not have to go through any credit checks.
This will be applicable with direct lenders as mainstream lenders cannot skip credit verification. On the flip side, private lenders pay attention to affordability, which should be noteworthy. Otherwise, you will not stand a chance to get approval for loans.
You will have to opt for a comparatively smaller duration. For this reason, the overall cost is not going to be too high. However, with a loan that has longer repayment duration, the cost is exaggerated as the number of months will increase.
One thing you must note is that feasible pricing might vary depending on your credit scores. This loan option might be a cheaper funding solution than a bank overdraft. However, you may find it a costlier option than a mortgage, which can have security attached to it.
The average variable interest rate for these loans could be around 14.41%. On the flip side, the fixed rate of interest would be around 12.42%. Now, when it comes to credit cards, the rate will typically vary from 14% to 16%.
If the above options are not acceptable to you, try this option. You should be ready to bear heavy charges because of this. Besides, your bank should allow you to extract the required amount.
This will again depend on the extent of the overdraft facility available with your bank account. Some banks offer interest-free buffer periods with arranged overdrafts. You can treat it like a suitable short-term borrowing opportunity.
If it is an arranged overdraft, you can expect the fees to be feasible and affordable. However, this is not possible in the case of an unarranged overdraft. One thing to remember in the case of overdrafts is that a single APR will apply to it.
Before trying out any of the options, you can have a conversation with your bank. This will help you figure out if you can get any loan options from them. The likelihood of getting help from the bank improves if you have a good rapport with them already.
They follow a different approach for their loyal customers. You can get better rates, given your past experience with the bank, which should be smooth. If things did not work between you and your bank, it would be better for you to switch your bank.
Some banks might be willing to offer flexible rates in order to gain a customer like you. Thus, at every step, you should draw a comparison.
You must be familiar with your current necessities. Otherwise, high chances are there that you get introduced to a wrong loan offer.
