Life has become complicated, and tackling various monetary situations difficult. Now, no longer people get scared of taking a credit card or any loan transactions as the need for money is enormous. Many crises happen for which one is forced to take external financial assistance in the form of loans.
However, what scares most people is one’s creditworthiness in the form of a credit report and credit score. A credit report is a record of all debit and credit transactions of a person, along with its repayment history. Besides, the credit score is a measuring tool for banks and other financial institutions to decide on the loan application of a person.
All over Ireland, people get confused regarding various information on credit scores. So many people are searching for loan options to fulfill their short term cash crunch needs.
When times are tough, such as these COVID – 19 lockdowns, people find it very difficult to meet all their expenses. Not only for their daily needs but also for handling some financial crises, unsecured loans in Ireland are very useful. No stipulation for any collateral and guarantee, the online lenders offer to give very flexible loan products.
All one has to do is click on the website, send an application, and rest part of the formalities will be taken care of by the lenders.
MYTHS TO BE DONE AWAY WITH FOREVER
Mentioned below are some myths regarding credit scores and credit reports for the information of various borrowers:
MYTH 1- CREDIT BLACKLIST EXISTS
Many people believe that the FCA or other authorities hold their data on the number of unaccepted loan applications. Thus this leads to the negative impact n their credit records. Nevertheless, this is not at all the truth. The records of a person are only maintained for three to six years and not before that.
Therefore, the scare of people that all their records of bad credit history are subject to strict scrutiny is unwarranted.
MYTH 2- CREDIT REFERENCE AGENCIES ARE RESPONSIBLE FOR LOAN DECISIONS
The role of the CRAs is the gathering and maintenance of information of individuals as a digital database. Besides, with their specific manner, they decide and provide credit scores. Nevertheless, they don’t have the authority or control over the decisions of lending credit to any person.
When a bank or institution requests for data, they provide them with the same without any personal recommendations. They only provide information as facts with which various parties decide on the loan applications.
MYTH 3- ONE’S PLACE OF RESIDENCE IMPACTS CREDIT SCORE
The locality of one’s residence does not matter in gaining any credit. Only when the change of house happens, the credit score gets affected, and not otherwise.
Further, the credit score of the previous occupants, also does not impact one’s loan application unless one had a monetary connection with it in the form of a contract.
MYTH 4- SCORES OF TWO PEOPLE GETS CONVERTED INTO ONE AFTER MARRIAGE
This is false.
A credit score and report is given to a person based on only their past debt servicing history and not of anyone else. These reports are strictly individual-based, and once a couple gets married, no impact is affected on this score unless they have submitted joint mortgage or other applications, together.
MYTH 5- NEVER BORROWED BEFORE PERSON GETS EASY CREDIT
This is false.
A person with nil debit or credit borrowing history is under the scare radar of the banks. As for them, he was predicting his debt repayment behavior is very difficult. Thus a person having no historical records of debts finds it very difficult to gain any liability. In addition, a person having good records of debt history along with documents has, in comparison, better chances of gaining easy loans.
So many times, it so happens that a person is struck with a monetary crisis that demands fast solutions. The traditional banks do not entertain these kinds of financing opportunities because of the scare for their repayments.
Nevertheless, many reputed financial institutions offer to provide quick loans in Ireland to anyone in need of urgent funds. When all the loan formalities get completed, the entire loan amount gets credited into the bank account of the borrower within a few hours or the same day.