However, it is a good idea to spend within the means. One can hardly follow it. It is in the case of a student’s life. Frequent needs for cash to meet one need or the other leaves one without savings. With no considerable savings and job support, students struggle with their pensive financial needs. It could be anything like- paying fees for the admission form, registering for the ice-skating match before the due date or stationery purchases for the new semester.
Among these, the most common thing that a student needs cash for is paying credit card bills. Nearly every student holds a credit card to carry out purchases or benefit from discounts. Untimely payments attract penalties extending the overall bill. It gets stressful if one lacks regular income.
If you find yourself stuck in any of these situations, short and quick loans can help. These are the best solution to the emergency financial need. You can get it for any inconsiderate requirement anytime. However, getting loans as a first-timer is not easy. Knowing the basics to loan up any small amount can help you qualify immediately.
The blog states some specific tips to get quick loans instantly as a student for any requirement.
How to get short loans as a student for emergencies?
Borrowing money for the first time is daunting. You may have queries like:
- Will you qualify?
- What documents do I need?
- Will the loan impact my finances?
When you borrow a sum, you borrow it with the intention and potential to pay it back. You do not need to opt for loans every time. If you lack savings and need money urgently, loans can help. Here are some tips that you, as student borrowing money for the first time, may benefit from:
1) Identify the need to borrow
It is the first thing that you should be mindful of. Analyse the purpose you need the money for. Can it wait until you receive your next pay from the part-time income? If not, how much can you realistically pay back with additional charges? It would help you decide the right amount to borrow.
2) Explore different options and costs
You may find every other option better than the previous one. Thus, sort out only those that align with your finances, credit score, health and personal circumstances. It may seem cumbersome and time-consuming, but taking the right loan is better than paying extra.
Identify the APR (Annual Percentage Rate) while comparing loans. Pick one with the lowest APR. It implies- you pay less loan fees in comparison to other options. APR includes interest costs. It is only possible if you do not miss any payment on the loan.
3) Analyse the eligibility criteria
After analysing the loan costs, check out the lender’s personal eligibility criteria. Every lender has a unique lending criterion. You may qualify with some, and some may outrightly reject your application. If you find the best APR loan, check the criteria. Apply if you meet it; otherwise, it could impact your credit score. Here are the general criteria for a small loan:
- You should be a permanent Ireland citizen
- You should hold a valid debit card
- Should have your name on the electoral roll
- Must have a direct debit facility with a debit card
- Hold a verified income proof (atleast £800/month)
Some lenders may have unique income requirements to approve a loan. Choose and go for the one that meets your barrier.
4) Update your credit score
A credit score is an important consideration to qualify for a loan. A high credit score reveals greater possibilities of affordable loan terms. But even if you lack a good credit score, you may qualify for time-sensitive loans. Short-term loans do not mandate a stellar one.
But one must hold one for the lender to assess the affordability. Most loan providers provide loans only after analysing the credit score. Do not worry; the analysis does not impact your credit score. Lenders provide short-term loans with no credit checks to individuals needing urgent money.
It grants one the opportunity to build a credit score. You can do so by paying your loan in regular monthly instalments. Skipping one payment may increase the interest rates and other penalty costs.
5) Check the spelling and details before applying
It is the most important concern while filing for any loan. The information on the application form must be true to your knowledge. Lenders demand additional ID proof, passport or license to tally your details.
A minor spelling mistake or mismatched details may lead to ultimate loan rejection. Thus, be careful while filing the application. Scan the details before clicking apply. Moreover, the application does not imply guaranteed loan approval.
6) Choose a comfortable repayment plan
A repayment plan is an agreement a lender provides if you qualify for the loan by meeting eligibility parameters. One usually designs it as per the borrower’s financial capabilities. Some grant borrowers the flexibility to choose the repayment structure.
You can choose from weekly or monthly payments on short loans. If confused, ask your lender to help you with the best possible structure per your finances. Once you get one, continue payments as per the structure until the loan term.
Choosing a long period (12 months) implies high-interest costs making the loan costlier. Thus, choose a repayment period within which you can conclude loan repayments comfortably.
Some lenders provide the facility to overpay the loan. It implies you can pay the dues with a single lump sum and get debt-free. It is beneficial for credit-building purposes. If you encounter any such facility or prepayment, ask whether it entails a fee. Most lenders charge a fee to overpay debt. It may impact your budget for the loan repayments.
7) Consult a lender if you can’t pay
Managing different liabilities as a student can be overwhelming and exhausting. Suppose you fear skipping a payment, set up a direct debit. Contact the lender if you cannot pay the loan anymore or need time. Discussing things may help you get a solution. The leading money lenders in Dublin help individuals gear up their finances and restart payments without hassle.
Bottom line
Thus, these are some tips for borrowing money as a student for the first time. The loan should not impact other important expenses. Try to borrow a lower amount than you need. It would decrease the payment pressure and make it more affordable for you. Paying in timely instalments helps your credit score. It is ideal for those who want to start their financial journey.
Caleb works as a senior content writer at Financealoan for the past 3 years. He is a writing enthusiast and invests a good time in exploring and writing about financial trends. His keenness in exploring a topic to create a research-based piece is simply unmatched. He believes in including a texture of authenticity with real-time examples and facts.
Caleb’s blogs and articles reveal deep-seated knowledge and expertise. His educational qualification forms the base of his excellent command over the industry and Jargon. He is a postgraduate in Finance and is currently involved in exploring the world of the stock market.
