
“Do you know your rights?”

“Or do you just know you have rights?”

Yes! Read it again!

Both have very different meanings and more often than not, people only know they have rights but have no idea what these rights are.

In the world of MONEY, there are so many cunning individuals ready to take advantage of your lack of knowledge. (Sad but true).

And that’s why, Irorun wants to educate you so you never have to take rubbish again.

Here are seven rights that you must know as a borrower;

## Right to data privacy
We know you don’t read an app’s “Privacy policy” when you sign up.

But here’s something you should be reminded of; you have [a right to data privacy!](https://medium.com/@Theirorunapp/irorun-would-never-misuse-your-data-11f26da8ae4e)

You have control over how your data is accessed, collected, managed, shared and used and lenders handling your data in any contrary way is a violation of your right to data privacy. “What type of data is collected?” “Where will it be kept?” “How long will it be kept?” These are the questions that are associated with data privacy, and you as a borrower have every right to ask them.

Lenders are liable to pay a heavy fine for a breach of borrowers’ data privacy (That’s why Irorun is extraaa careful with your data). Don’t hesitate to report lenders for unethical practices.

## Right to be heard
Taking out a loan is not some forbidden thing! Never allow any lender to silence you! They’re not doing you a favor! It’s a business transaction with mutual benefits.

So, SPEAK! Sórósokè!

You have every right to be HEARD.

Lenders should never refuse to hear what you have to say, deflect your questions or wave you off and make you feel foolish for making inquiries. Run away from such lenders. The last thing you need when going over loan agreements is ambiguity. This shouldn’t only apply to right before taking out a loan. Even after you’ve taken out a loan, there are a lot of things that might happen during your repayment period, the lender should be able to address these issues as well.

Any lender who refuses to listen to what you have to say doesn’t care about your needs and will most likely make your loan experience tough.

Get yourself a lender who is willing to listen to you (like Irorun).

## Right to ethical treatment by the lender
In recent times, there has been a rise in cases of unethical treatment of borrowers by lenders, especially with cases of privacy compromise. Irorun wants you to know that they’re wrong! You should never be treated badly because you borrowed from a lender.

There is no acceptable reason; whether you are unable to pay back your loan or are asking for a term adjustment due to financial constraints, that a lender should treat you with violence, harassment and privacy violation. (Totally barbaric! Don’t take nonsense! But you sef pay back o!). A responsible lender will engage a defaulting borrower in accordance with the LAW. You have a right to be treated ethically and humanely by lenders.

If a lender is one who is fond of using harassment and the threat of violence and to try and force you to repay, [then you should report such unethical practices immediately](https://blog.lendsqr.com/how-to-report-lenders-for-unethical-practices/) and cut your losses. Desperation should not be a reason to remain with a bad lender. (Please avoid wahala na).

## Right to advance and sufficient notice
Just like a landlord can’t simply ask a tenant to move out without any advance notice, a lender cannot change the terms of a running loan without first giving them prior adequate notice.

As a borrower, you are entitled to advance and sufficient notice to prevent both you and the lender from getting into situations that puts you at odds.

Reminders for loan due dates or any change in terms should be communicated before penalties are implemented. Even notices should be given to inform you of what your penalty is and when it is due. Ignorance isn’t always bliss especially when it involves money!

## Right to request restructuring to your loan
Many factors can affect the status of your loan repayment and in these instances, you can request a restructuring or renegotiation of your loan to create a schedule for repayment that would benefit both you and the lender.

Such instances could be a job change or an unplanned emergency. (Life sure happens sometimes).

You can request to restructure your loan repayment if you fear you might not be able to meet up, to avoid default. This restructuring will involve either a loan holiday, rescheduled loan repayment or lowered interest rates. Approval typically depends on the lender’s terms.

## Right to the documentation and terms of loan offers
“Claims without evidence is null and void”

This is where documentation comes in. You should always make certain that you have records of all your loan activities with a lender. The documentation is your legal entitlement and should be provided by the lender.

Documentation that shows interest rates and fees associated with the loan, repayment period, penalty fees, proof of payment, and any other special condition should be given to you without hassle. (It’s your right sis!). Don’t let any lender try to scam you.

## Right to prepay your loan without penalties
Not all lenders have a prepayment penalty as it is something that is becoming less and less common.

As a borrower, you have a right to prepay your loan without penalty as long as it has been stipulated in the loan terms and agreed upon both by yourself and the lender. (Read the fine print!).

Most lenders tend to hide the prepayment clause in the fine print and if you are someone who tends not to read their terms completely then you might be setting yourself up for drags. (Again, read and re-read the fine print sisss! ).

…

Ensure you understand the terms of your contract, ask questions for clarification, make suggestions where necessary and avoid red flags of lenders that infringe on your rights!

Irorun wants you fully knowledgeable of your rights, so you can spot a bad lender with ease and FLEE!

For further assistance and questions, quickly shoot us an email at support@irorun.com.

Know your rights as a borrower


As you dey plan for money…na so money sef dey plan for you! 

Have you ever been in a position where you’ve saved up a particular amount more times than you can count?

You save. Obinna needs money to buy a lecturer’s handout. You spend.

You save again. Mama falls sick. You spend.

You save AGAIN! Water from the flooded streets of Lagos knocks your car engine. You spend.

Frustrating right?

When it comes to loans… you may be tempted to run away…

This is your reassurance that GOOD lenders ([like Irorun](https://irorun.com/)) understand that LIFE HAPPENS to everyone and even when you plan to repay on the due date, an unplanned emergency could pop up and you hit a roadblock. If this happens to you, there’s no need to panic or abscond (you’re not a thief are you?!).

Take a deep breath and follow the steps below to make informed decisions that’ll get you out of financial muddy waters in no time…

## Contact the lender immediately
The first instinct most people have when they realize they are unable to pay back their loan on time is to panic, dread and hide. While this might be a natural response, it does more harm than good.

They sit, fret and wait for the lender to call and ask why they haven’t paid their debt or inform them of the seizure of their collateral.

This is what most people go through, but you are not most people and can avoid this. It’s quite simple, when you get into a tight situation that’ll deprive you of meeting the repayment date, it’s now time to make that ‘bound-to-be-uncomfortable’ but ‘needed’ CALL to the lender.

Explain your situation to them with sufficient evidence, so they don’t think you are trying to skip on your payment. Informing them of your struggles on or after the due date makes you seem like a fraud, so contacting the lender and keeping them informed shows a level of trustworthiness they might not have known existed. (Don’t blame us! We are used to super-stories from borrowers too).

## Ask for a grace period
The next thing you should do when you can’t make loan payments on the due date is to ask for an extension AKA GRACE PERIOD.

Now that you’ve contacted the lender and explained your situation, you can ask for a grace period as a means to smooth out any problem affecting loan payment.

Depending on their terms, lenders may grant a grace period of 0 to 30 days after the due date.

During this extended period, you will be free to work through your financial difficulties, and here’s something really interesting — when you resume debt payment you won’t be asked to pay a late fee. (See why honesty is the best policy!). The grace period also gives you a chance to restructure your loan with the lender and agree on terms that are fit for you and the lender.

## Restructure your loan terms
Restructuring the terms of your loan can take the form of reduced interest rate, extended repayment period or reducing the remaining balance. (Plenty of options available for you!)

It will give you some relief and make it easier for you to repay your debt. It could be temporary or permanent. Temporary restructuring is such that your terms will be adjusted for the period you are facing problems while permanent restructuring is such that your loan terms are adjusted and the adjustments are kept even after your problems have been solved.

## Budget and save towards clearing up debt
Once your loan has been restructured…

The panic dies down and you relax back into your any-how money routine.

No! Don’t do that.

Now would be the time to swiftly get your finances in check and pay back your loan. And you do that by strict budgeting, that’ll allow you to save up enough to clear up your debts within your grace period.

Remember that for the duration of your grace period any debt paid off will not attract a late fee.

And while it may entice you to look for get-rich-quick investments, you should not succumb to the temptation, as a high-risk investment is another means to splurge your money and end up in the financial trenches. AGAIN! (Suffer nor dey tire you?).

## Pay your debt
Well, this speaks for itself. Doesn’t it?

Once you’ve followed the above steps; contacting the lender, asking for a grace period, restructuring your loan terms and budgeting to save up, you can now pay your debt with ease.

The lender will thank you for it and might even sneak your name into the responsible borrowers’ list. [Here’s a way to know how you can make that list](https://medium.com/@Theirorunapp/are-you-a-responsible-borrower-6564b24a9e6a).

A rule of thumb is to always clear up pending debts before your grace period elapses. It not only boosts your credibility but also your loan worthiness for the future. 

…

As always, Irorun will always get you out of sticky financial crises with our never-ending curated information just for your consumption!

We’re always happy and available to offer you expert advice and opinions…

Shoot us a message at support@irorun.com for more clarification on what to do when you fall short on repayment!

What to do if you can’t repay your loan when due


“It’s the work of the devil”

Have you ever used that line? I hope not.

It’s not only overused but it’s also a lie 11 out of 10 times.

But let’s assume it was indeed the devil that lured you into refusing to repay your loan on time, here are the things that could happen — Buckle up! some of them are not pretty at all;

## Excessive emails and SMS
If there ever was a time for you to regret putting in your email or phone number for anything, it’s when you decide to ignore the lender when it’s your due date.

The lender isn’t going to cut you some slack because they’re also worried you might never pay back. (Nobody likes to lose money).

With email after email, the lender will try to contact you multiple times in several days to remind you of your obligation.

These emails and SMS will contain reminders of your obligations as well as warnings of the consequences you will most likely face. Although it may seem annoying to you, the lender wants reassurance that you have no plans of running away with their money.

## Incessant calls
The devil might whisper sweet-sweet nonsense in your ears and tell you to block the lender from sending you emails. (Jumoke that’s bad behavior na).

And now the lender becomes even more apprehensive and starts calling at almost every moment. (Wahala o!). It’s usually at this point that most defaulters start giving excuses as to why they’ve failed to settle their loans.

Lenders are less likely to listen to your excuses when you do not reach out to them at the start of your troubles or the moment they first contact you. (It’s because you wasted time and acted like you were planning to run away na). Most lenders won’t go for blatant verbal threats once they get to the point of incessant calls but they may passive-aggressively remind you of the [consequences of defaulting on a loan](https://medium.com/@Theirorunapp/5-consequences-of-defaulting-on-a-loan-c1b1996a63c7).

## Credit bureau/blacklist
At this point, the lender has had enough, marked you as a defaulter and made a report to the credit bureau, with your name and required information, where you will be blacklisted. (Double wahala).

Blacklisting comes with a lot of problems, especially between you and future lenders (if you ever want a loan approved it’s likely to be tough).

The realization suddenly hits you, that all this could have been avoided if you had taken the right steps or not ignored your repayment in the first place. Sad, right? [Not to worry, here’s how you can get your name off the bureau blacklist and repair your history](https://medium.com/@Theirorunapp/how-to-repair-your-history-with-the-credit-bureaus-c5ffd45a52f2).

## Court order/Lawyer Up
Once you’ve been reported to the credit bureau it’s only a matter of time before you are hit with a court order. (My Lord, may I?).

The lender has to get their money back, and at this point, you’ve ruined any chance of amicably settling your loan obligation. (See how you’ve added extra expenses for Lawyer? The money you refused to pay back).

Ignoring a court order like you ignored the lender’s calls and email should be the furthest thing on your mind, keep your head down and do as you are told to avoid any more trouble (you’ll be arrested if you ignore a court order. Triple wahala!).

## Privacy violation
Some unethical lenders, in their anger will disregard your right to data privacy and access your personal information e.g your contact list

To them, having you blacklisted by the credit bureau isn’t enough, they would want to maliciously share your loan default with those closest to you, in a bid to soil your name.

Yes, ignoring your loan obligation is bad behavior. But on no account should your data privacy be violated.

[Irorun would never do anything remotely harmful to your reputation and your privacy](https://medium.com/@Theirorunapp/irorun-would-never-misuse-your-data-11f26da8ae4e). You have trusted us with your details and we prioritize the rights of our customers. Including erring customers.

We would also never give your information or share our experiences with you with third-party without your express permission. And if for any reason your rights are violated by an unethical lender, [here’s how to report them](https://blog.lendsqr.com/how-to-report-lenders-for-unethical-practices/).

## Collateral seizure
Another consequence that comes with ignoring your loan obligation is having to forfeit your collateral. (You go fit give up your house so?).

The lender has the legal right to seize and sell your collateral to cover up your debt. This is mostly true for large/secured loans.

Before you decide to ignore your loan obligation, you should put some thought into what you stand to lose. You might think that you’ve been able to play a fast one on the lender, but in the long run, you’re bound to lose more. For your peace of mind, apply for a loan amount you’ll be able to pay back on time. (I’m sure you don’t want to stay under bridge abi?).

## Civil offense punishable by Law
While you may not be arrested or go to jail for defaulting on a loan (It is not a criminal offense), it’s still an offense punishable by law.

You could be sued to court and asked to pay a fine that may be significantly larger than the amount that you previously owed or ordered to pay your debt which failure to do so would then make it a criminal offense and you could be sentenced to jail. (You see how the problem is increasing???).

You could end up spending more than you bargained for due to your negligence. Again, you should know you can’t play slippery with the lender (especially Irorun). We’ll get our money back that’s for sure.

## Soiled reputation
The one inescapable thing that happens when you ignore your loan obligation is a soiled reputation. (Chai! Your name will be dragged in the gutter).

It becomes a lot harder for you to take out new loans even from a different lender. No self-respecting lender worth their salt is going to be willing to lend to an individual whose name shows up on the credit bureau blacklist. (except a loan shark aka unauthorized lender). [Here’s how you can spot them and also why you should FLEE from them!.](https://medium.com/@Theirorunapp/why-you-should-never-borrow-from-unauthorized-lenders-d5da31bd0e34)

In the beginning, it may not look like such a big deal to get blacklisted, after all, what’s money you cannot make on your own abi?. But try to picture a scenario where an expensive health emergency comes up. Salary is still weeks away. Friends and family are not able to help you out. Now, you’ve decided to get a small loan approved…

Oh wait, you’re a known defaulter (you forgot abi? The database didn’t forget o!). See how your previous recklessness can cost a life? A situation that could have been avoided if only you didn’t ignore your loan obligation.

…

Irorun always wants your borrowing experience to be free of hitches and the best way we do this is to provide you with sufficient expert information and assistance.

Send us a message today at support@irorun.com!

Consequences of ignoring your loan obligation


“We’ve calculated your APR and emailed the xwyzgegbkirjztycb….do you have any questions?”

“None at all! Where do I sign?”

Eissss stop there!!!

Did you truly understand or you just wanted to sign and collect your money?

We understand that you need a quick fix and can’t wait to complete your loan approval process, but being ignorant of the terminologies can cause you great financial loss in the future, especially with bad lenders.

You must understand every term the lender uses during your loan application. And that’s why we’ve curated 10 easy-to-understand terminologies for you below;

## Borrower/Debtor
This is the person who takes out a loan from a lender and has a legal obligation to repay with any added fees. (Yes! Amaka na borrow you borrow the money, no be dash them dash you).

## Lender/Creditor
This is an organization or an AUTHORIZED individual that lends money to a borrower to provide help while making a profit. Emphasis on authorized. That dodgy-looking man that lends money to people and beats them up when they don’t pay is not an authorized lender. They have a name — “Loan Shark” (Shine your eye and borrow from legitimate sources o!).

## Debit card
The card we all know and love. This card is connected to your bank account from which you carry out both online and offline transactions with the use of an Automated Teller Machine (ATM) or a Point-of-Sale machine (POS). It is also used as a means of loan repayment, although it shares similarities with the direct debit means of payment. There’s a slight difference in loan fees which debit cards tend to charge higher fees.

## Direct debit
Now that your loan has been approved, repayment options are made available and one of them is DIRECT DEBIT. This is when money to repay is taken directly from your bank account only after being AUTHORIZED by you, as your bank cannot allow such to happen without your permission. It is a seamless process and only requires you to submit a mandate to your bank giving the lender permission to debit your account when the loan is due.

## Guarantor
This is a person that comes in only when the borrower is unable to repay the loan. This person could be a friend or family who signs an agreement, alongside the borrower, to take responsibility for a loan if the borrower defaults or does not pay. Once you’ve agreed to be a loan guarantor, it’s almost impossible to withdraw from the responsibility without the express approval of both the lending authority and the borrower. Most of the time, the lender will only approve if there’s another loan guarantor (Siri play Oniduro mi ese o! Because you’re Oniduro for life ).

## Installment loan
“I go pay the money small-small before you know e don finish”

An installment loan is the above. It is a type of loan where the borrower repays a portion of the principal and also pays interest on the loan in regularly scheduled payments. This is mostly done for large amounts of loan in an attempt to lessen the financial burden on the borrower. (Aww so thoughtful of us abi?).

## Default
This refers to failure to meet the repayment date following what was stated in the promissory note as a result of financial constraints, money emergencies or witchcraft. Yes! Witchcraft (why won’t you pay back what you borrowed na?). Irorun understands that life happens and if for any reason you find yourself struggling to pay back. Don’t. Ghost. Us. Reach out to us at support@irorun.com and we’ll restructure your loan terms.

## Loan deferment
Sometimes life happens and you might default on your repayment date. Relax it’s not the end of the world . Ethical and authorized lenders have a system that delays your loan payment without violating the loan terms. It is an extension of your loan period by the amount of time you are unable to pay. It serves as an option during loan restructuring. This puts you out of the bureau blacklist and saves your reputation. (See why e good to meet better lender?).

## Loan limit
“If something too sweet e dey run for belle”

And that’s why a loan limit serves as the maximum amount of money the lender will loan to a borrower based on several factors (income, creditworthiness, lifestyle). It helps reduce the issue of runaway borrowers and losses by checkmating the criteria for large amounts of loans. If you have ever wondered why you can’t get bigger loans and what you can do to change that. You should check this out, so you can increase your loan limit as well.

## Principal
This is the original amount of money without any interest and/or charges. It is the amount that ‘you say you want to’ borrow. For example, If you borrow N10,000,000 to buy a car and your loan amounted to N10,050,000. Your principal is N10,000,000. It is the main part of your loan.

…

Do you want to learn more loan terminologies in this same fun way? Reach out to us at support@irorun.com

You want to inquire how to get started on your loan application? Reach out to us at support@irorun.com

You have further questions or need us to work with you through taking a loan with us? Reach out to us at support@irorun.com

Also, tell a friend about us!

10 loan related terms you must know


Do you have a [good credit score?](https://www.cnbc.com/select/what-is-a-good-credit-score/)

Or you don’t want to talk about it…

A credit score is a three-digit number, typically issued by a credit bureau, that helps lenders to determine your creditworthiness. Credit scores are generated to reflect the credit risk associated with borrowers; basically, the probability that you will repay the loan.

The higher your credit score, the better. A good credit score helps you get lower interest rates, puts you on the best loan terms with lenders, increases your chances of securing a larger loan and overall increases your creditworthiness.

And that’s why Irorun is bringing you easy and fast ways to boost yours today!

## Start with small loans
Now you have to know that a credit score does not just show up out of nowhere. To get one (or to begin the process of building one) you have to take out loans.

“But I thought I can not get loans if I do not have a credit score?”

No, no, You can not get LARGE LOANS if you do not have a good credit score or no credit score at all. That is why you have to start with small loans, little amounts that should give you no trouble while paying back. (Remember, the goal here is to boost your credit score).

Furthermore, you can sign up with AUTHORIZED and ETHICAL lenders like Irorun that you can apply for small loans from, without hassle, repay in no time at all and this helps to boost your credit score. (What are you waiting for?).

## Make repayments on time
As much as taking out loans helps to boost your credit score, it doesn’t mean much if you refuse to make repayments on time, your credit score is bound to go lower if you keep on making late repayments and this is one way you can boost your credit score faster.

Your credit score helps to determine your creditworthiness, so doing right by your loan and making your repayment on time will give you a reputation as a very good borrower as well as boost your credit score. It’s for this reason, that if you are unable to make your repayments on time, inform your lender before the due date so that renegotiation can be made (Amaka don’t run away with our money).

## Avoid round-tripping or sweeping
Your money story nor clear finish –Your lender.

Round tripping or sweeping is that fishy process where one immediately withdraws or transfers money that comes into one’s account the moment it arrives usually to places where their spend pattern cannot be analyzed (Egbon it’s giving yahoo-yahoo).

Your lender likes being able to see through your bank statement to get a read on what your spend and gain pattern looks like(A.K.A wetin dey chop your money and wetin dey give you money).

So a bank statement that simply contains credit and then an immediate debit does not look good. It seems sketchy, doesn’t it?

This can cause you problems with your bank and affect your credit score because that account’s bank statement cannot be used to properly assess your eligibility for a loan.

## Avoid negative account balance
There are times when your account balance reads its lowest or does not have enough for what you need so you decide to take an overdraft (this in and of itself holds no issue), a problem pops up when you are unable or refuse to pay that overdraft and your account ends up reading in the negative.

Remember that an overdraft is still a type of loan that banks give and that a refusal or inability to pay lowers your credit score.

In the same sense, banks also have a habit of taking their charges from your account even though it reads almost empty, this puts it in the negative and thus affects your credit score.

## Check for error and report any mistakes on your credit report
A credit report is a record of a borrower’s credit history from different sources e.g banks, credit card companies, government agencies etc…

You must be wondering how you can get yours?. The good news is that you’re eligible to get one free credit report per year, and you can get yours when you apply with [First Central](https://firstcentralcreditbureau.com/), [CRC](https://www.crccreditbureau.com/product/crc-self-enquiry?coupon=FREEREPORT&ref=_home) or [CreditRegistry](https://creditconnection.creditregistry.ng/).

An instance where you identify an error on your credit report, you must immediately contact the credit bureau with your details;

1. Your full name
2. Phone contact
3. BVN
4. Gender
5. Evidence of payment
6. Letter of non-indebtedness

As long as you’re able to prove that you’re not indebted to any lender, you can [repair you history with the credit bureaus](https://medium.com/@Theirorunapp/how-to-repair-your-history-with-the-credit-bureaus-c5ffd45a52f2).

As a rule of thumb; Request for your credit report at least once a year, check for errors and report accordingly so that the proper corrections can be made to prevent future grievances with your lender.

…

Now, you know how to boost your credit score. Don’t you think it’s time to start with the first step?

Reach out to us at support@irorun.com to get started on your first small loan that’ll take you to LARGER LOANS!

How to boost your credit score


Do you know why Nigerians struggle with paying back the money they borrowed?

IMPUNITY. Yes! Most borrowers believe there are no consequences for defaulting on a loan.

Source — We no fit lie give you.

You may or may not know that most lenders also finance the money they lend to you from other sources and as such they can’t afford to forfeit. (Pity lenders, it’s really not a charity organization).

And that’s why there are PENALTY CHARGES for [defaulting on a loan](https://medium.com/@Theirorunapp/5-consequences-of-defaulting-on-a-loan-c1b1996a63c7).

PENALTY is the fine that lenders apply to borrowers who don’t pay back on time. It’s a common charge by lenders globally and also in Nigeria.

[Irorun](http://irorun.com/) wants you to be aware of all that is involved in applying, accessing and repaying a loan. Read further to find out what you should know about loan penalty charges:

## Each lender offers a different penalty fee
Although not widely known, each lender has different rates on their penalty charge. This charge normally ranges from 1% to 5% of the principal + interest for late payment and while this may be true for one lender, it may not be for another. Usually, the penalty charge is computed every day after a number of days the loan has gone past due. This is what is usually called the Grace Period. Fall from grace, and the penalty comes to you like a hammer.

Each lender’s charge varies, so before applying for a loan, you should take the initiative to find out what the lender’s fees are. Knowing what could happen when you violate loan terms can help you plan for future emergencies that may make you financially unstable and render you unable to pay back loans. (So that you’ll not say “They’ve stolen extra money from you” meanwhile you didn’t ask questions).

## Penalty charges may cause a dent in your finances
Money no dey×2, you dey add extra wahala on top the one you get 

The reason you may want to take out a loan or have taken one already owes to the fact that your financial standing at the time isn’t the best for one reason or the other, that is, you don’t exactly have the cash in hand or your bank account.

So imagine having to pay back extra on a loan that is already a hassle to repay, it will certainly put a dent in your low finances.

This is one reason you should endeavor to pay back your loan on time or request for a restructuring of your repayment terms if you are unable to repay the loan with the current terms. [Here’s what to do if you can’t repay your loan when due](https://medium.com/@Theirorunapp/what-to-do-if-you-cant-repay-your-loan-when-due-773eb03f7084).

## Your credit score may be affected
Remember “Credit Score = Creditworthiness (Loan Worthiness)”.

Your penalty payments are added to your credit history and this can end up lowering your credit score. If there were times that you owed long enough to be charged a penalty then there’s a good chance it’ll reflect in your credit history. Remember that your credit history is what helps in calculating your credit score, so with each penalty charge, there is a reduction or stagnancy in your credit score. (Lenders go begin dey run from you if your credit score low o!).

You may have paid up your debt, but the one time it went unpaid is still taken into consideration and this lowers your credit score, you become ineligible for larger loans. [Not to worry, Irorun can show you how to boost your credit score](https://medium.com/@Theirorunapp/how-to-boost-your-credit-score-e723bd2ce497).

## Difficulty in obtaining future loans
As you now know, your credit report is an important aspect of the loan application process and can be the reason you end up being unable to take any more loans.

Well, the reason is more than your credit report, after all, it only reflects what you have or haven’t done.

When you end up penalized for a violated loan term, it ends up on your credit report (even if it is rectified), this same report is used when applying for other loans.

Lenders are put off by the history of multiple penalties in your credit report and this affects your chances for future loan approvals. Every penalty present on your credit report is a stain on your reputation as a borrower and lenders will always be wary of bad borrowers.

…

[Irorun](https://irorun.com/), like other responsible lenders, may apply a penalty to you if you don’t pay back on time and you never discussed restructuring with us.

And that’s why you can always reach out to us at support@irorun.com to inquire about our loan process as well as restructure your loan terms.

Better safe than sorry right?

Send us a message now!

What you should know about loan penalty charges

Hey there Rockstar! Today we’ve simplified the Irorun loan application process into 5 simple steps.

Come along let’s help you get your first loan:

## Set up your account
Visit the Irorun website and follow the prompts to either download any of the apps and sign up or just sign up directly on the web app. Once you are signed up successfully, you also need to do the following as they are mandatory requirements to apply for a loan:

## Update your address and also add the details of your next of kin
Add a government-issued ID card such as a drivers’ licence, international passport, etc.
Add a valid and active debit card. We usually accept only Mastercard or Visa debit cards
Now you’re ready to apply for a loan with Irorun.

## Apply for a loan
With the Irorun app installed on your device (or you may be registered on the web app), it’s time to get your first loan.

## Log on to your dashboard and click on the “Apply for a loan” icon.
- Fill out the application form: You’ll be shown an application form, in which you’re required to fill in your relevant personal data. For example, name, age, email address, valid ID card, bank verification number etc.
- Assess the form thoroughly and ensure you fill in the correct data.
- Submit loan application form.
- Complete the final verification process

Once you have submitted your loan request, it would be in pending status. You would then get an email from Irorun stating that your documents have been received, however, you would need to speak with the Irorun loan team to complete the final stage of verification. The number to call would be in the email sent by Irorun. This final stage is necessary to help us curb the issue of identity theft or lending to scammers using the identity of innocent and unaware individuals.

Please note that leaving a voicemail or voice message does not count as a call to the Irorun representative.

## Kindly wait for our feedback email
Once you’re done with the final stage i.e the phone call verification, look out for one final email with either an approval or denial of your loan request. This final email will only be sent to you if you have completed the phone call verification.

Kindly note that Irorun operates on an algorithm-driven database and this means that after your credit profile is vetted, you’re matched to the loan option that is the best fit for you.

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For further questions and assistance send us a message at support@irorun.com!

A simple guide to the Irorun loan application process

Have you ever wondered why some people get their loans approved and others don’t?

It all boils down to the qualities that endear lenders to them.

No lender wants to take a chance on someone they’re “unsure” of.

So, here are 5 qualities that’ll endear you to responsible and ethical lenders:

## Creditworthiness
Good credit history is one quality lenders tend to look out for in a borrower. A good credit score, and a squeaky-clean reputation, go a long way in helping you secure that loan you want.

When a lender looks through your credit history and sees that you have built up a high credit score by being very meticulous about paying back your debts on time and have never defaulted on your loan, they will be less likely to deny the loan amount you are asking for. A good name is better than riches

## Good money management skills
A good borrower should be self-aware of their financial standing and tailor their loans to expenses that are of the utmost importance. The ability to separate wants and needs is a skill that is highly underestimated among many today but is one that can make or break a borrower.

Good money management skill helps in maintaining a favourable standard of living even while in debt and also helps one clear them quickly without trouble.

Most of the time, bad money skills are why many shy away from loans. The misconception that loans are responsible for debts is completely false. Bad money management skills are the reasons why people fall into debt.

## Trustworthy
Another quality of a good borrower is to have a profile that screams “I can’t and won’t run away with your money.” If a lender cannot trust you with their smallest loan amount, how can they be expected to trust you with a significantly larger amount?

Building trust is not just about paying back your debts on time, it also involves communicating with your lender If there are any issues you may have with repayment.

Building trust with your lender also increases your chances of getting approved for a much larger loan.

## Punctual repayment
This quality is a favourite of most lenders. It not only builds trust with your lender but also boosts your credit profile.

A good borrower should always endeavour to meet up with the scheduled repayment date and inform their lender if they will be unable to meet up, so that an alternative may be decided on. Ghosting your lender is not a good look. It screams yahoo-yahoo.

## Good spending habits
As much as your lender has no say in how a borrower should spend their loan, having good spending habits is an attractive quality a borrower should have. A good money quality everyone should have is the ability to cut down unnecessary spending habits and create alternatives that help save money while also meeting one’s needs.

An individual in debt should not be using their loan to buy items they can do without. No Amara you don’t need another pair of pink shoes.

Even though good money habit is not the key to wealth — at least it’ll help you keep the wealth when you get there.

Thank you for coming to Irorun’s TEDtalk. Stay rich rockstar!

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Our support is here for you as always, so send us a message at support@irorun.com!

5 qualities of a good borrower


Sometimes all you really need is a small and quick fix to sort out that financial crisis…

And that’s where a MICROLOAN comes into play.

There are a lot of benefits associated with taking out a microloan and today we’ll be exploring 5 of these benefits:

## Easy application
If you think about it, you are more likely to give a friend 5k if they ask for it rather than give them 500k. True or true?

It’s the same with lenders; they’ll be more likely to approve a small loan than a larger one especially when it’s your first or second time borrowing from them. Small loans tend to be less of a hassle considering plenty of documentation and interviews are not required unlike with a larger loan. Larger loans require a lot of documentation, interviews and a higher level of loan worthiness and therefore are harder to apply for.

## Credit history/score building
One key benefit of a microloan is the ease of being able to pay back with little to no inconvenience.

Now picture this scenario; You take out a microloan that you are dead sure you will be able to pay back and keep this cycle for, say about 7 months. Your credit history is going to be very long and ATTRACTIVE to lenders, won’t it?

Why?

Because you have a LONG history of paying back your loan on time.

This is a great strategy for building your credit score and giving you a packed credit history (Remember, with a clean and extensive credit history you become eligible for LARGER loans). [Here are some other ways to boost your credit score](https://medium.com/@Theirorunapp/how-to-boost-your-credit-score-e723bd2ce497).

## No collateral required
A commonly spread myth about loans is the assumption tHat eVerY lOan rEquiRes cOllaTerAl. This isn’t true, some loans, especially micro-loans require no collateral.

No one is going to take away your car if you take out a 20k loan. Collateral is mostly required for large loans and has to be of equal or greater value than the loan amount. Microloans can easily be paid back, so collateral tends to not be a requirement. This means that you can easily get that loan to build up your credit score without the feeling of impending doom hovering above you.

## Predictable repayment schedule
Microloans, because of their size, tend to have a standard repayment method. This is because most microloans are installments and have a fixed schedule attached to them. Repayment dates are usually seven days after taking the loan.

If you time it right, you will always be able to repay your loan on time, this means that you can predict the repayment date, take out loans accordingly and have control of your finances. Win-win.

## Fixed interest rate
Microloans tend to have a fixed interest rate, there will be no changes to the interest rate even in the case of inflation, so when you take out the loan you can calculate how much your interest will be before the due date. This combined with a predictable repayment schedule can make your loan journey very enjoyable. No surprises there abi?

With much larger loans, the interest rate is dependent on the type and terms of the loan, a fixed-interest loan will keep the interest predictable but a variable loan would be unpredictable as it could rise/fall with inflation/deflation.

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Remember that [Irorun](https://irorun.com/) offers microloans as small as N5,000 and as large as N50,000.

Send us a message to get started at support@irorun.com!

5 Benefits of a microloan AKA small loan

It’s absolutely heartbreaking to get a “no” when you so desperately need a “yes”, especially in time-sensitive cases where you urgently need cash.

And that’s why Irorun has curated 5 reasons why your loan can get declined. To prevent it from happening to you.

## Low credit score
One common reason your loan may be declined is having a very low credit score, which is a blaring sign for two things — a new borrower or a loan defaulter, both of which can be risky to lend to. Your credit score shows how creditworthy you are, and when it sits in the lower range, it raises the question “Can I trust this borrower to pay back with ease?”

Having a very low credit score does not stand alone as a reason for a declined loan application but it could play a big role.

Lenders like Irorun endeavour to give fair treatment to all new and earnest borrowers. Read more on how to boost your credit score.

## Unstable income
When you apply for a loan, your lender is always going to inquire about a source of income whether you have one or not. Lenders want their prospective borrowers to have a stable source of income as it shows that they will be able to pay back their loan on time.

An unstable source of income is a red flag to many lenders as it’s a sign that you may not be able to afford a loan at the moment.

Remember, a stable source of income doesn’t mean one source of income like a salary. It just means that your bank statement should reflect constant monthly cash inflow. This reduces your chance of having your loan declined.

## Invalid means of identification
A lack of a current and valid means of identification is another reason that your loan may be declined, as, without one, a lender has no means to verify your identity and as such cannot be sure that you are who you say you are.

Declining a loan application made without a current and valid ID is simply done to prevent fraud and identity theft as we can never be too careful. Therefore, a lack of proper identification increases your chances of getting a “no.”

## Applying for a large loan amount
Large loans are usually reserved for our loyal users who have proven to us numerous times, that they can not only be trusted but also afford to pay us back with ease. If you’re new to Irorun, and you apply for a large loan, there’s a high probability that your request will be declined.

Not to worry, here’s how you can get bigger loans with us in the future.

## Not meeting the basic requirements
To be eligible for a loan some basic requirements are to be met. They include:

- Being of legal age to apply for a loan (18 years and above)
- Being a legal citizen of a country with a valid ID card
- Up-to-date bank statements or some form of financial record/verification.

Not meeting up with these requirements automatically puts you out of the running for a loan, you should ensure that before applying for a loan you meet these requirements, to avoid your loan being declined.

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For more clarification and assistance, reach out to us at support@irorun.com!

5 reasons why your loan was declined

Frustrating right?

Trying to reach out to a brand and not getting a response for days has to count as one of the most frustrating moments!

It gets even worse when it involves an issue that requires urgent attention.

At Irorun, we understand how frustrating and disappointing it could be especially when it involves money and that’s why we constantly find ways that allow you to communicate with us with ease via various mediums.

Everyone has a preferred contact method, and sometimes different problems have different ways they can be addressed. Here are 3 ways you can make inquiries/solve your problems with Irorun:

## Contact us via email or phone number
At Irorun, we make it our priority to be available to assist all of our users, including prospective clients. This is why you can always, and at any time, send an email to Irorun if you have any inquiries or concerns that need to be addressed. In a matter of minutes or a few hours, you can get a reply to your inquiries and concerns.

If you feel like an email is not your style(and also doubt that your reply was written by a human), you can also contact us through our helpline made readily available for you on our website. We have representatives available to listen and help you solve your problems.

## Chat with an Irorun representative using our live chat feature
The world is miles ahead of Nigeria as regards technology. But Irorun quickly adapts and that’s why the live chat feature has been made available for you. It connects you with one of our representatives right there on the website or even on the app. This way you don’t have to worry about your contact details being in the wrong hands.

With our live chat feature, a representative will be there to guide you through any issue you’re struggling with, by giving you suggestions and directions on what approach can quickly solve your specific issue. All on the website.

## Go through our frequently asked questions (FAQs)
There may be inquiries that you need to make that others have made before you. When situations like this happen, Irorun takes a count of how many people have asked that particular question (phrased in different ways) and provides an answer for it which will then be made available on the website. These questions and answers are called FAQs — Frequently Asked Questions.

Most times, when you make inquiries through the live chat feature, you’ll be directed to the FAQs if it’s a question that has been answered. Irorun has a wide selection of FAQs that you can go through to find an answer to your inquiries and a solution for any problem you may be stuck on. Here’s a look at Irorun FAQs.

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Reach out to us with your inquiries at support@irorun.com and we’ll be sure to give you more tips.

3 ways you can make inquiries/solve your problems with Irorun


If you’ve ever wondered what questions you should ask a prospective lender before you say Yes! to the loan. We’ve got you!

No more falling prey to bad and unethical lenders and that’s why [Irorun](http://irorun.com/) has curated 5 questions you can ask your lender:

## What other fees are there?
Some people believe that all there is to a loan is the money they intend to borrow (principal) and the interest. Fortunately, Irorun is always willing to educate and clear up myths.

There could be more. In fact, there are always more. Many lenders include processing fees that are either; to be paid before you receive your loan, fees to maintain your loan or fees for the repayment of your loan.

Each fee varies depending on the loan amount, loan type, repayment terms and the lender. Some fees are non-negotiable; meaning that if you are to be charged, the amount cannot be changed.

You must know that some fees may not apply to you but an unethical lender who wishes to take advantage of your ignorance may charge you ruthlessly and that’s why it’s important for you to ask your prospective lender for all fees connected to your loan, why they’re charged and if there’s any room for adjustments. [Here’s how you can report unethical lenders](https://blog.lendsqr.com/how-to-report-lenders-for-unethical-practices/).

## When does the late fee start counting?
The late fee or a penalty charge is the fee you have to pay when you are unable to pay back your loan as of when due and as such, it is dependent on the lender. Lenders tend to have a grace period that is given to borrowers when they fail to repay their loan on the due date.

Some lenders typically give a grace period of 3–60 days, depending on the size of the loan. These differences between lenders’ grace periods make it important for you to question your lender on when your late fee starts counting. (To prevent a case of “Had I known …”).

Usually, failure to pay after the grace period will lead to you being reported and registered as a loan defaulter, depending on the loan type and terms. [Here’s how to repair your default history with the credit bureaus after clearing your debt](https://medium.com/@Theirorunapp/how-to-repair-your-history-with-the-credit-bureaus-c5ffd45a52f2).

## How long will the loan process take and how soon do I receive funds?
Just like every other important process, loan processing takes time depending on the loan type and amount, total loan processing (which includes application, approval and funding) can take 3 to 7 business days on average for online lenders and credit unions. Although [Irorun](http://irorun.com/) will process your loan within a couple of hours!

Remember to ask your lender about the length of time it may take to get your loan approved and disbursed especially if you are in a tight spot and need the money as soon as possible.

## Is there room for loan term restructuring?
This particular question should be of high priority, because an emergency or uncontrollable event may happen at any time, so you need to be prepared to make adjustments to accommodate these situations.

A lost job or other unforeseen circumstances could affect your ability to pay back your loan. This is why you must prioritize finding a lender that offers room for restructuring loan terms. If you find that for some reason it may be difficult for you to meet up with your loan obligations to Irorun, shoot us an email at support@irorun.com so we can work it out.

Not all lenders offer this, so it’s best to make enquiries about it from your prospective lender. Knowing that you have the option of restructuring your loan term if you hit a roadblock calms any anxiety you may have about taking out a loan. The goal is to jump and pass lenders with rigid terms that can cause high BP.

## What are the terms and conditions I should be aware of?
Pleasee!!! Read and re-read the fine prints…

You shouldn’t take out a loan without knowing the complete terms and conditions involved. Endeavor to read the given terms and conditions, and ask questions about the things you don’t understand because there could be some hidden clauses in the fine print.

The terms and conditions govern everything about the loan you take, so there is no room for ignorance ma’am. If you can’t understand the terms and conditions, ask the lender to clarify or have someone there with you who can understand. As a rule of thumb never sign a document you’re yet to grasp what it entails.

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If you have more questions, send us a message at support@irorun.com.

As always we’ll be available to provide answers and maybe even solutions!

Until next time…Tell someone new about us!

5 Questions to ask your lender

Wait!!!

Before you apply for that loan, hear us out

To reduce the myths surrounding loans, we’d first have to break the stereotypes around them.

For your sake and ours as well, you should never have to apply for a loan “unsure” or “undecided.”

And that’s why we’ve listed out 3 important questions you should ask yourself before taking that loan:

## Do you need a loan?
This is a highly underrated but important question to ask yourself before applying for a loan. Are you actually in need of it or are you craving credit alert?

We know that the joy that comes with receiving a credit alert is incomparable and very tempting but, we urge you to take another look at your finances and be 100% sure you want to take out a loan. Are you ready to pay back with the added interest? Are you ready to face the scrutiny? Are you ready to lose something you own or face court charges in a case where you default on loan repayment?

If taking out a loan does not benefit or aid you extensively in the long run then there is no need for you to take out one.

## How urgently do you need the loan?
Another thing you should consider before applying for a loan is the “urgency of the situation.” The type of emergency you’re facing also determines if you truly need the loan at that moment. Some emergencies need a more immediate reaction than others, for instance, if you had to choose between taking out a loan for a health emergency and a car emergency, you’d obviously pick the health emergency (your health is more important than a broken bonnet).

You’d need to take out an immediate loan to solve a health emergency but a car emergency can be postponed to another time (while you make do with other alternatives). The urgency of a situation can also be a deciding factor your lender may use.

## How do you intend on paying back?
Okay, so you’ve answered the questions above and it’s looking a lot like you need to take out that loan. There’s just one more thing to consider — How are you going to pay back the loan? Do you have a stable source of income that will help you compensate for the loan while maintaining an acceptable living standard? Or are you just trying to press your luck and hope for the best?

When you decide to take out a loan you have to cover all ground and that also includes how you’re going to repay your lender without ending up living below standards. The idea that loans are destructive and cripple one’s finances is totally wrong! It’s bad financial choices that cripple one’s finances. With the right financial plans, a loan can very well be a boost to your overall standard of living.

Once you’ve worked out how you’re going to repay your loan then there should be nothing holding you back.

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As always, Irorun is more than just a loan app. We care about the money choices you make and we contribute our quota in ensuring you never lack good financial knowledge.

Remember, we’re just one message away. Reach us at support@irorun.com today!

3 questions to ask yourself before you apply for a loan


If your reason for NOT applying for a loan owes to the fact that your income is low, then you should read further…Irorun has something for you 

Yes! Even with a small salary, you can get your loan approved by an AUTHORIZED lender. Here are ways on how you can qualify for a loan with a low income;

## Include every eligible source of income
It’s possible that you feel that your income from your job won’t be considered good by your lender and will thus lead to a loan application rejection, while this has some truth, there are ways to get ahead. Let Irorun show you how

Income doesn’t just mean money you get from a contracted job, it also includes money you receive regularly, therefore the money you receive from your business, side hustles, assets and investments count as income.

Lenders like to see that there are contingencies (plan B) in place that will enable you to pay back your loan. They want borrowers who they are at least 101% sure will be able to pay back (with interest) any amount of money loaned to them and that’s why you must include other sources of income to boost your chances of getting your loan approved.

## Apply for smaller loans
If you have an income of, say N50,000 and apply for a loan of N5m with no extra income source, it’d be tough for you to qualify for a loan. No respectable lender would willingly take that risk. Maybe a loan shark would but you’d be paying back for a very long time.

Ethical Lenders do ensure that they do not disrupt your standard of living while giving you loans and for this reason, they have a basis to refuse your loan application especially if you do not have other sources of income or suitable collateral to back you up. We care too much abi?

Applying for a smaller loan of 30k, 50k or 120k is more likely to be approved because your inflow of cash can carry through without a disruption in your standard of living.

## Add a guarantor
Another way to qualify for a loan even with a low income is to have a trusted family or friend that earns higher than you stand as a guarantor.

A guarantor is someone who agrees to hold responsibility for someone else’s debt if they default. This makes the guarantor equally responsible for paying off the loan. [Read more on who a guarantor is](https://medium.com/@Theirorunapp/10-loan-related-terms-you-must-know-a0185213bdf1).

Having a guarantor with a large income will, in the eyes of the lender, be as if you have a large income (since you’ll both be held responsible for the loan). This could make you eligible for larger loans even if you earn a lot less than your guarantor.

## Build trust with the lender
“Trust is built with consistency”

And this is true for a lender-borrower relationship as well. No reputable lender is going to give you a large loan on your first loan application, with no credit history you are simply not eligible AKA loan-worthy.

You will do better if you take out small loans from your lender over a long period to build up your credit history and trust with your lender.

A lender that you have had several good interactions and loan transactions with will be more likely to approve your large loan. Fostering trust between you and your lender allows for easy loan approval. [Here’s how to build trust with your lender](https://medium.com/@Theirorunapp/why-cant-i-get-a-higher-loan-amount-as-a-new-borrower-200e68bad968).

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At Irorun, we’ll always show you different routes to seamlessly getting your loan approved.

For further questions or assistance, reach out to us at support@irorun.com now!

How to qualify for a loan with a low income

Thank you for trusting us to give you the best loan option! 

Now that we delivered it’s time for you to meet up with your repayment date right?

Here are 5 major things you should know about our loan repayment:

## Prepayment penalty fee
A prepayment penalty fee is a fee that is charged if you pay back your loan earlier than the repayment date. Some lenders typically charge a prepayment fee, mostly because they don’t want to miss out on any part of their calculated profit through interest. Fortunately, Irorun does not charge a prepayment fee and as such you are free to make loan repayments before your due date. Tell us thank you!

## Funding
As a registered Irorun user, you have a wallet account that can be funded to help you pay back your debt. This is the ONLY accepted means of repayment. Your Irorun wallet account can then be funded with your debit card or through a bank transfer.

You can also repay your loan with USSD right from within the app. And if you have good uncles who are ready to bless your ministry, you can share your payment link with them as well and they can pay for you.

Back to your debit card, you need to ensure that your debit card is valid, and funded so that you may be able to pay back in due time. Remember, penalty charges start counting three(3) days after the due date.

## Cards
Now that you know about funding your Irorun wallet with an ATM card, the next thing you must know is “what type of debit card is accepted?” We gotchu!

Irorun only accepts Mastercard and Visa cards for now. These cards must be issued within the country which you are taking the loan from.

## Penalty charges
Although we may not charge a prepayment fee, we are not exempt from those who charge penalty fees for late payments. Irorun charges a penalty fee if you don’t pay back your loan on its due date or your assigned grace period.

We know that there may be valid reasons as to why you would be unable to pay back your loan on time, and that’s why your penalty fee only starts counting three(3) days after the due date. We’re due for another thank you! Are we not?

This grace period would give you enough time to get in touch with an Irorun representative to work out a solution to any problem you may have as regards your loan repayment.

## Second loan eligibility
You’re automatically eligible for another loan once you’ve cleared up your previous loan on time. Here’s the thing, your second loan can only be approved if you apply seven (7) days or more after the first loan.

And here’s another thing; if you didn’t pay your first loan on time and the system had to chase you around like an errant child, we may never trust you for another loan again.

And here’s one last thing; if you pay your loans on time, you are automatically eligible for a higher amount or new loans.

Be rest assured that we are highly receptive to our repeat clients and reward their loyalty. Visit Irorun to find out more about these rewards.

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If you need further information or clarification regarding repayment processes, kindly reach out to us at support@irorun.com!

5 things you should know about Irorun loan repayment


Pulling yourself out of debt can be incredibly challenging especially when other necessary expenses are fighting for your resources as well.

We want to make the process smoother and quicker, by showing you several mistakes you must avoid during this time, so you too can be debt free!

## Bad spending habit
When someone is in debt most of their effort, rationally, should go towards paying off the debt, so why then would they still consider frivolous expenses? (I know you’re not like that sha).

But if for any reason you struggle with bad spending habits that are hindering your finances and you urgently need to clear up debts, here’s what you can do — find better and cheaper alternatives to curb overspending; You want to eat out with friends to catch up? Host an indoor movie hangout with a home-cooked meal. New clothes? You haven’t finished wearing the ones you have . Gadget upgrade? Beautify the one you have (change the screen and get a new pouch). Make a genuine effort to avoid bad spending habits that are likely to push you deeper into debt.

## Trying to do it alone
“No man is an Island”

Being in debt doesn’t automatically make you a lone wolf, you can ask for help from family and friends, and if you can’t do that (you may feel uncomfortable going to them and that’s okay) there are always other options.

You can turn to people around you who can help you create an effective budget system or also try getting an extra income from working for sure jobs. Look through some of your under-utilized skills and start monetising them. So many options available abi?.

Taking on all that pressure alone can be bad for your mental health, so please do ask for help.

## No practical budget
One mistake you must avoid is having no form of budgeting, this would not only slow down your debt repayment, but your finances will also be jaga-jaga.

And that’s why you must create a detailed and realistic budgeting system.

Every aspect of your spending is taken into consideration when making a budget, expenses that you can do without should be taken out entirely and expensive necessities should be exchanged for cheaper alternatives.

The budgeting system should be made around the debt to be paid and with that, every other expense can be calculated in a way that is affordable and efficient. And that’s a smooth path to the “debt-free” bus stop.

## Tackling multiple debts at once
The idea that splitting your finances to tackle multiple debts at the same time will speed up repayments is false. It does work in few cases but puts a damper on your standard of living and leaves you drained in the long run.

A more effective way of debt repayment would be to pay off the larger debt first as they are likely to have higher interest rates. This will free you up from financial constraints in a better fashion than trying to pay off all loans at the same time.

## Not engaging with your creditor
A very common mistake that you must avoid at all costs is the mistake of hiding from your lender when faced with a financial crisis and being unable to repay your loan on time.

The truth is, engaging with your lender honestly and asking for a loan term restructure is well within [your right as a borrower](https://medium.com/@Theirorunapp/know-your-rights-as-a-borrower-a7bdbfda3f8).

Lenders are obligated to listen to your struggles regarding debt repayment they would like to know because your struggles also affect their business. They are willing to make adjustments where it is necessary (reducing interest rate, extending repayment period). [Here’s a step-by-step process on what to do if you can’t repay your loan when due](https://medium.com/@Theirorunapp/what-to-do-if-you-cant-repay-your-loan-when-due-773eb03f7084). Nevertheless, it’s not only during times of struggle that your lender would like engagement, feedback on the loan processing and repayment is also welcome and help to build rapport with your lender.

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As always, [Irorun](https://irorun.com/) wants you to enjoy a seamless borrowing experience through AUTHORIZED and ETHICAL Lenders (*coughs*like us).

Send us a message today at support@irorun.com and get matched with the loan that’s just right for you!

Mistakes you must avoid when paying off debts

Jingle coins…Jingle coins…Jingle all the way (to the bank) 

As the holidays are fast approaching, we’ve curated 5 money mistakes you should avoid this season

Dive in!

## Impulse buying
There are a lot of people who believe that holidays are a perfect time to spend money on miscellaneous items due to rapid inflation in prices, the thought process is usually “I don’t know how much it would be after the holiday so let me just buy it now.” Irorun is here to tell you to relax.

When the urge to buy every random item crosses your mind, fight it! You’re not missing out on anything.

Satisfying every “buy me” impulse may leave you broke before the holidays are even over. Be a little intentional about curbing those impulsive habits, to avoid regret and unchecked expenses.

## Having no holiday budget
A sure way to curb impulse buying during the holiday season is to set a realistic holiday budget that covers all your major expenses for the season. This holiday budget will help you put a check on your spending limit.

Having a holiday budget will give you that sense of responsibility that you didn’t even know you needed and that’s why you need one (because life doesn’t end at the holidays). Having no budget affects your thought process, it becomes a free-for-all, and you just might end up struggling to keep up after the holidays are over.

## Not saving for January 35th
We can’t be the only ones to have noticed that the days after the holidays seem to stretch on forever and seem to have a lot of expenses piled up (It’s like the universe has decided to punish you for having too much fun). You seem to realize that in your bid to enjoy the holidays to the fullest you are left with nothing and are now struggling. God forbid! Abi? That’s where budgeting comes in. Remember, when making a budget, you are always advised to set aside some savings. January has 35 days o!

One piece of advice we’d love to give you regarding saving is this — Don’t just save for the rainy days with cloudy skies, save for sunshiny days with clear skies too.

## Don’t get lost in the holiday spirit
Many holiday decisions are made under the influence of the “holiday spirit”. It’s easy to get lost in the bubble and fritz of the holiday and that’s why some people only decide to travel and visit family during this period. For someone who is trying to survive till after the holidays, this would mean extra expenses for you. Village people would want more than greetings o!

Unless you have enough to spare for a holiday trip, you shouldn’t be taking one on a whim. Even when others travel for holiday adventures in other parts of the world doesn’t mean that you should.

Imagine getting stranded in another state or country because in the ‘spirit of the holiday’ you wanted to visit some random family member or go on an adventure without making plans for it. Ha! don’t do it!

## Hosting the Joneses
Say it out loud “I’m not at home!”

We know that sometimes it’s hard to outrightly say ‘no’ when asked for a favour from family or friends. But sometimes learning how to say “no” saves you from unplanned and burdensome expenses.

Take, for instance, a family member or friend suggests “spending the holiday with you”. Although it seems like a nice holiday gesture, it would be best to decline if your finances cannot accommodate so much at that point. Taking on extra expenses in a bid to “save face” may cost you more than you expect.

…

It’s the festive season soon and as always, we want you to make great financial choices and plans in preparation for the new year.

Irorun is still in the business of providing the best loan options. Send us a message at support@irorun.com to find out more.

5 money mistakes to avoid this holiday

Loan request declined? We’ve got good news for you! 

There’s still a chance to get that loan approved. As always, Irorun is here with actionable and helpful tips for you.

Check out 5 actions to take if your loan gets declined 

## Review the decline notice
The first thought that tends to come to mind for several people when they get declined for a loan is “Why?”. You start to question the lender’s judgement because as far as you’re concerned, everything was in order at your end, but instead of making assumptions or giving up completely, you can review your decline notice to learn and understand the reason for it. Doing this already puts you one step ahead in solving the problem. PS: Secrets are always hidden in the fine print. So read the fine prints!

## Ask for more details if you can
When you get rejected for a loan and receive a decline notice, even after reading the notice, you should make an effort to ask the lender for more details about your loan rejection. Most times, it isn’t all details that have been placed on the notice and you can gain a lot more understanding by asking the lender to clarify what was written on the notice or simply asking for more information. If your lender doesn’t mind or if it’s not against their policy, they could be willing to share what went wrong in your application that warranted a decline.

## Review your credit report
How often do you review your bank statements, credit reports and financial documents? 

Most people hardly check through these reports, because it’s believed that everything is as it should be, but the truth is, it’s not always so. Your finances, just like any other aspect of your life deserves regular checks and review.

When you get declined for a loan, you should take the time to check for inaccuracies in your credit report as these might’ve been what the lender saw that made them decline your loan application.

Your credit report holds most of the power in your approval for a loan, so you should take the time to make sure that it’s as accurate as it can be as even a tiny error can lead to a loan rejection.

## Pay off other pending debts
A genuine lender checks your past credit history with the credit bureau to ensure there are no defaults, disputes and uncertainties.

If the lender reviews your past credit history and finds one or more unpaid debts, best believe your loan request will be declined. The fact that you are still indebted to other lenders may make them believe that you don’t have the capacity or even worse, the willingness, to pay off any loan that they may lend you. Remember, a lender who’s unafraid to lose their money is a red flag.

Your best bet is to pay off all other pending debts you may have before trying to take out another loan.

## Apply for a smaller loan amount
When you get declined for a loan, it’s advisable you apply again but for a smaller amount than what you previously applied for. There’s a possibility that the lender has noticed an unclear detail in your documentation that affected their belief in your capacity to repay the loan amount you requested.

You can try for a smaller loan amount, an amount that can be paid back with ease and speed. This increases your chances of getting approved and not declined.

…

We hope you’d try out these tips and let us know how it works out for you. For more clarification and assistance in applying for a loan, send us a message at support@irorun.com!

5 actions to take if your loan was declined


Do you have vex money?

Do you have anything-fit-sup money?

Do you have extra-flex money?

Hmm…you have none? Not to worry, [Irorun](http://irorun.com/) has you covered. This article will show you actionable tips for saving an **emergency fund.**

Any amount of money kept separately and used to cover the expense of unexpected situations is an emergency fund.

Life is unpredictable and situations (even ones that you are prepared for) can pop up at any time and surprise you. For instance, in a situation where one loses their job, an emergency fund allows them to live well for a few months while on the search for a new job. It’s almost like insurance for any “what-if” situation that arises.

Living without an emergency fund is similar to living on the edge — the “financial” edge, hoping that you won’t run into any unexpected situation. (That’s very unlikely though).

Being prepared with an emergency fund gives you the confidence that you can tackle any situation life throws at you without stressing about your finances.

Here are a few tips to help you start saving with ease:

## Set a monthly/weekly savings goal
Setting up an emergency fund could be likened to budgeting. You calculate all your expenses and set aside an amount for your emergency fund.

You can give yourself a realistic goal, say #20,000/month or #8,000/week. Giving yourself a goal to work towards allows you to put more effort and consideration into creating that emergency fund. We’re cheering for you! 

## Automate your savings
Another tip to help you save for an emergency fund is using the power of technology by “Automatic saving”. You can set up a standing order for a set amount of money to be transferred into your emergency fund account. This way, even if you forget to transfer into the account, your standing order will ensure that money will be transferred into your emergency funds account. See how seamless it is to save money these days.

## Check for extra money that can be added
In today’s highly inflated and recessive economy, it could be hard to squeeze out extra money when you’re trying to live comfortably. Yes, it may be hard doesn’t mean it’s impossible. Every amount helps whether it’s a gift (in the form of money), employee bonus or relief package. These extra cash could be added to your savings especially if you do not have an immediate need or use for them. Money left over from buying your necessities can also be added to boost your emergency funds. The goal is to be financially ready for any August visitor.

## Keep your funds accessible
Your emergency funds are exactly for that — Emergencies so you should keep them in a place where they can be easily accessible to you when you need them but do try to keep them in a place where you can hold off the temptation of using them. Taking from your emergency funds once can lead you to take from it multiple times. Fight the temptation, ma’am!.

## Cut down unnecessary expenditure
As we mentioned in the beginning, setting up an emergency fund can be likened to budgeting, this means that there is a need for you to cut down on expenses that eat into your finances.

“No one knows tomorrow” that’s why even the wealthy save. Those extra expenses(phone upgrade, restaurant hopping, etc…) can be halted for a moment until you’re able to build a habit of saving for a rainy day.

…

At Irorun, we’ll not only show you how to borrow with ease but also how to make the best financial choices.

Send us a message today at support@irorun.com!

Tips for saving an emergency fund

It’s never a great experience to get ripped off your hard-earned money 

In this article, we’ll discuss 7 ways you can spot a loan scam

Check them out 

## The lender assures a high chance of approval
One of the many ways to spot a loan scam is through the “Guaranteed approval” claim. The lender would try to assure you that you have a high chance of being approved for a loan. You might even be honest with them and say you don’t meet all the requirements but they’d tell you that you would be approved. It’s giving sketchy!

Fraudulent lenders aren’t interested in your creditworthiness. They tend to seek borrowers who are more likely to fall behind on loan payments which would lead to them having to pay high late payment fees and penalties. These types of lenders tend to make claims like “Everyone is approved!”. Your best bet is to steer clear of them.

## The lender doesn’t have any evidence of license to lend
Lending is a regulated business and as such lenders are required to be licensed to give loans. Our friends at Lendsqr have done an amazing job of explaining the different licenses a lender could hold before they give out loans.

Loan scammers usually don’t have licenses so you can easily spot one when you check the lender’s website to verify the list of states where it can legally conduct business.

## The lender demands upfront payment
Some scammers have been known to demand debit cards or sensitive banking information from borrowers. They claim they need the information for insurance, collateral or fees. Legitimate lenders may charge a fee for your application, but those charges are deducted from your loan. Any lender who demands an upfront payment in exchange for loan approval is most likely up to no good. Remember, an upfront payment (illegal) differs from a processing fee (legal).

## The lender pressures you to act immediately
When a prospective lender gives you an ultimatum or a deadline to apply for a loan with them, with a warning of “offer expires soon”. There’s a possibility such a lender is either hiding something or It may be a ploy to get you to make a rash decision without having time to do your research to uncover the scam they’re running. Shine your eyes o!

## The website is not secure
There are scammers out there with active and running websites in hopes of seeming legitimate, and they use these unsecured websites to steal sensitive information by using a malware bug. It works just like any other loan website and sometimes can be tricky to uncover unsecured websites, but here’s a helpful clue - Unsecured websites usually begin with “HTTP” instead of “HTTPS”.

## The lender is not transparent about extra fees
Most predatory lenders will avoid posting their fees on their websites or disclosing them when asked. They may also tell you that you’ve been approved for a loan and then demand a fee from you upfront. While some reputable lenders do not list their fees on their websites, fees should be disclosed during the application process and before you sign anything.

Hidden fees that are imposed after loan approval are a huge red flag!

## Too good to be true syndrome
The reality of this situation is that if a loan offer sounds too good to be true, it probably is. Legitimate lenders won’t just call you out of the blue with an irresistible loan offer. You likely won’t qualify for a loan with an unbelievably low rate or a bad credit history. As always, remember that a lender who’s unafraid to lose their money is definitely one to steer clear off!

…

Now that you know how to spot and avoid loan scams, it’s a good time to send us a message at support@irorun.com and let’s get you started on taking your first loan!

7 ways to spot a loan scam

Have you tried to link an account to your Irorun wallet, and it failed? Do you wonder why?

Now, here’s the gist of it.

There’s a high chance you tried to link a virtual account. Unfortunately, Irorun doesn’t accept virtual accounts as a suitable link to your Irorun wallet. We understand that it may be your preferred means of saving money (and we don’t fault you for that) but at Irorun we do not accept you linking a virtual account to your Irorun wallet.

If you’re unsure what a virtual account is, here’s a brief rundown.

## What is a virtual account?
Virtual accounts are non-physical payment methods used to send and receive money. A unique account number is usually assigned to the user by the financial institution. A virtual account operates in the same way a traditional non-virtual account does, with the exception of a physical location.

Virtual accounts are set up using basic personal and financial details like name, mobile number, email address, Bank verification number etc.

## Which banks provide virtual accounts?
Virtual accounts are issued by most Fintech companies or some traditional banks. The Fintech company you patronize may provide you with a virtual account where you transact or save money for the foreseeable future. Unfortunately, Irorun does not accept links to these virtual accounts.

## Why Irorun does not accept virtual accounts
Here are 3 reasons why we don’t accept virtual accounts:

## Dispute in regulation
Most virtual accounts are usually tied to a Fintech company which has different regulatory policies from a traditional bank. This raises uncertainty as regards payment policies, as well as issues of companies packing up and leaving clients stranded.

## Dispute in ownership
There is no certain way to prove that the virtual account belongs to you, as your BVN may not be linked to it. How then are we sure a prospective borrower owns that account? How do we get our money back in cases where there are no legal or financial ties to the virtual account whatsoever?

## Dispute in client information
There is no bank verifying that your ‘Know Your Customer’ (KYC) has been done. A traditional bank offers a series of data collection and KYC forms that certifies that indeed, this client has an account with us and can be contacted with ease through several means. Unlike virtual accounts, where it’s near impossible to verify if a client truthfully and completely updated their KYC forms.

In other words, the risks and uncertainties are far too numerous to brush aside. Until such a time when there are far stricter regulations.

For the time being, we urge that you understand and comply with linking registered and active non-virtual accounts issued by a traditional bank in your country.

### Here’s a fun fact
Irorun also issues virtual accounts from providers such as Sparkle Bank, Polaris, etc. which are used solely for the repayment of loans. This virtual account is issued to you when you sign up and apply for a loan with us. With this virtual account, you are able to receive money from any non-virtual bank account.

Irorun is a lending platform and is licensed only to give out loans. You should not use your Irorun-issued virtual account for anything other than paying back your loans.

Using your Irorun virtual account for any other reason different from what it has been assigned can lead to your account being deactivated. Read more on why the Irorun virtual account should not be used for saving.

…

Irorun is always available to give you the necessary information that would make your loan experiences free from hitches. Send us a message at support@irorun.com!

Irorun does not accept virtual bank accounts!


“Let me just drop urgent 2k here in case I need it one day” — that’s how you’ve dropped money with us for months now.

We understand the temptation that comes when you find an app that you can fund, you jump at the chance of depositing money into it as it gives you a place to save for rainy days.

However, we regret to inform you that [Irorun](http://irorun.com/) is not a savings app or platform to keep “extra” money. Irorun provides users with a wallet account not for saving but as a means of loan repayment.Therefore, any amount of money funded to the wallet should be done by only ACTIVE LOAN HOLDERS.

It’s okay if you’ve assumed otherwise, that’s why we’re here to remind you that [Irorun](http://irorun.com/) is not a savings app.

## Implication of funding your Irorun wallet account with no active loan
When you decide to use your wallet account as a means of saving, you stand the risk of getting your account deactivated. YES! deactivated.  Once the system detects that your wallet has been funded and registers that you do not have an active loan, your account will be deactivated because such actions are seen as fraudulent. It’s giving “I-didn’t-know-where-else-to-hide-this-money”.

The process to rectify an account deactivation can take from 48 to 72 hours due to various investigations that will be carried out to determine where the funds came from, after which the money would be sent to the source account (the account the money was sent from). The stress isn’t worth it abi?

Do you see how using Irorun as a savings app will prove to be an inconvenience to you in the long run? Don’t be dismayed. When [Irorun](http://irorun.com/) launches a savings feature, you’d be the first to know!

Remember, Irorun is not a savings app and is solely for LOANS and REPAYMENT.

For further questions and assistance please send us a message at support@irorun.com.

Thank you for coming to Irorun’s TEDtalk.

Until next time, tell a friend about us.

Irorun is not a savings app!

Hello Rockstar!! 

How’s the economy at your end? We understand these days might be tougher than others and we thought to bring some light to the beginning of the tunnel.

If you ever get stuck in a situation where you need that extra help to fulfill your loan obligation, you can always turn to family and friends to help (well, those that have money to spare) and as such we give you 3 ways your friends and family members can help you pay back your loan with Irorun.

## Direct transfer
When you are in need of money to pay back your loan and have had a nice long discussion with that Uncle (or friend) that wants to help, you can send them your bank account details so that they can directly send you the money.

From there you can now wire the pending loan amount to your Irorun virtual account. This is everyone’s choicest method, the individual gets in touch with a friend or family member who’s kind enough to offer help, and they send the money to them so that the individual can make the payments themself.

## Share your Irorun virtual wallet
This method can work well alongside direct transfer. Instead of asking a friend or family to send the money to your bank account, you can simply provide them with your Irorun-issued virtual account number. They can directly send the money to your virtual account and then you can pay it back with ease. This method is especially helpful as a means to avoid any extra transfer charges your bank might slap you with.

## Share your payment link
Another method others can use in helping you pay back your loan is the payment link method. This link takes the friend or family to a webpage created for the specific purpose of paying money into your Irorun virtual account. A payment link is usually single-use, so it can’t be used more than once.

Payment links tend to have many purposes but in this sense, they offer an individual a way to clear up a loan debt. Remember, if you ever get stranded in paying back a loan at Irorun, you have the option to share the payment link with a friend or family member willing to help you out.

…

At Irorun, we understand that some days are tougher than others and you can have great intentions to pay back your loan, but life just happens…

We urge that you don’t keep us in the dark or be unruly to us, send us a message at support@irorun.com and find out the options available to you.

Best of luck rockstar!

3 ways others can help you to pay back your loan

“Read the fine prints, ask all the right questions, do all the digging necessary because — it’s money involved”

A highly overlooked question to ask before any loan transaction is the “do you charge extra fees?” question.

When taking out a loan, you must know that various fees differ with each lender. These fees could be paid before, during or after your loan application.

We’ve carefully selected 3 types of loan fees you’re most likely to come across:

## Processing fee
The lender has to bear some administrative costs while processing your loan. This is usually a small amount, which varies from lender to lender and typically costs a small percentage of the total amount of the loan.

Depending on the lender, a processing fee may be paid upfront by a potential borrower just to set things in motion since a lot of work goes into determining whether or not you qualify for a loan. It could also be deducted from your loan amount before disbursal.

The processing fee is meant to compensate the lender for the expertise, time, and effort it takes. Some charge a flat rate while others set the fee as a percentage of the loan amount. This fee is non-refundable even if the loan is denied.

## Late payment fee
The late payment fee as the name implies is a fee that is paid when a borrower fails to meet up with their loan repayment schedule. The late payment fee is also called a penalty charge and it varies from lender to lender. Some lenders offer a grace period unique to their policy before the late payment fee begins.

Late payment fees are either a flat fee or calculated as a percentage of the due amount. If you suspect that you won’t be able to make a payment on time, contact your lender and see what other options are available to you. Read more on late payment fees.

## Prepayment fee
Some lenders also charge a prepayment fee when a borrower pays back their loan before the scheduled repayment date. Early payment reduces the interest that the lender would have gotten throughout the loan. Thus the lender issues a penalty to compensate for the loss.

Always confirm with your prospective lender whether prepayments are against the terms of the loan. The actual cost of a prepayment penalty will vary depending on how it’s being charged. It can be charged in one of three ways:

- As a percentage of your loan balance
- As the extra interest, your lender is missing out on since you paid off the loan early
- As a fixed fee

As a rule of thumb, we encourage you to inquire from the lender what other fees or payment policies there might be before any transaction is carried out. This prevents cases of I-didn’t-know or they-cheated-me. It also prevents issues of loan default and dispute.

…

We hope this helps you make informed loan decisions as you go.

For any further questions or assistance, shoot us a message at support@irorun.com!

3 types of loan fees you should know about


“I hear say those loan apps dey…”

We know you might have heard some hearsay about microloan(small loan) apps and you’re unsure if there are any good options left for you.

Today, [Irorun](http://irorun.com/) wants to clear the air and separate myths  from facts.

## Myth 1: You need a high credit score to get a microloan
It’s a well-known fact that you need to have a high credit score to qualify for a large loan but does the same apply to microloans? Many individuals seem to believe so and therefore shy away or believe that they are unable to take out microloans.

## Fact 1: You can get a microloan as a new borrower
Contrary to word on the streets, it can be said that microloans were made specifically with NEW borrowers in mind because of the ease of paying back. It also simultaneously caters to your needs and boosts your credit score. A double win right!

## Myth 2: Interest rates on loan apps are significantly higher
Some people get discouraged from using loan apps due to a multitude of reasons, one of which is the belief that interest rates tend to be higher when loans are taken out using the loan app.

## Fact 2: Loan apps provide flexibility of interest rates
Irorun would have you know that the interest rate on loans is determined by several factors including but not limited to loan amount and purpose. [The Irorun loan app provides](https://irorun.com/) flexible interest rates that ensure repayment is no hassle.

## Myth 3: Loan apps are illegal and/or fraudulent
Sadly, many have fallen prey to scammers disguised as microlenders and this has further increased the belief that loan apps are illegal and are working outside the law under pretenses. But can this be considered the truth about ALL loan apps?

## Fact 3: Lenders who are authorized, registered and ethical exist
“Two truths can co-exist”

Yes! Some malicious lenders work under pretenses to steal from others.

Yes! There are also AUTHORIZED and ETHICAL Lenders with a history of giving out loans, respecting borrowers’ privacy and maintaining good relationships ([Irorun](https://irorun.com/) is one of such).

Before you carry out any loan transactions with your prospective lender, please conduct proper investigations to determine their authenticity.

If you’ve had contact with an unethical lender, [here’s how you can report them](https://blog.lendsqr.com/how-to-report-lenders-for-unethical-practices/).

## Myth 4: All loan apps are the same
“A loan app is a loan app, it doesn’t matter if it has a different name” — Somebody who hasn’t tried [Irorun](http://irorun.com/).

The loan app ecosystem has had a lot of bad press due to the unethical practices of malicious lenders and so many believe that all loan apps are the same.

## Fact 4: Loan apps are not all the same
Despite loan apps having a general purpose of giving out loans, they are not all the same.

On one hand, some loan apps are hassle-free and take a small amount of time to work out their processes *coughs Irorun*. While on the other hand, others have a way of causing stress during repayments and hiding extra fees. *side-eye*

In the same light, not all loan apps offer the same opportunities; Some apps, like Irorun, offer microloans of #5,000–#50,000, while some offer large loans and others offer a mix of both.

## Myth 5: Loan apps steal your data and harass you when you can’t pay
Unfortunately, this is common with a lot of unethical loan apps. This behavior has built up the fear of taking out loans due to the belief that your data will be used to harass you and those closest to you.

## Fact 5: Ethical lenders will never breach your data privacy
Although this may sound cliché, [Irorun](http://irorun.com/) would like to apologize to any borrower out there who has been faced with the despicable unethical behavior of some lenders and also appeal to you that we would NEVER breach your privacy in any way or harass you and your loved ones.

We would like to assure you that there are ethical loan apps out there that would never cause you distress. [Again, you should know that you can always report unethical lenders who breach your privacy](https://blog.lendsqr.com/how-to-report-lenders-for-unethical-practices/).

…

We hope we’ve been able to dispel some of the myths held against microloan apps.

For more questions and assistance send us a message at support@irorun.com!

Myths vs. Facts of microloan apps

Are you thinking of your first loan application attempt?

Irorun has carefully selected common issues you are likely to come across and how to tackle them.

Let’s jump right in 

## Choosing a lender
Many borrowers find it difficult to choose who to borrow from and when it comes to small loans, you will find hundreds of lenders out there, each claiming to be the best. This can be an issue for borrowers.

However, it is essential to know that one lender is not the best for all borrowers. One size doesn’t fit it all.

You should compare lenders based on their various loan terms such as loan amount, interest rate, repayment period, eligibility criteria, document requirements, customer service, and other parameters. This makes it easier to choose one that offers your required loan rate with suitable terms and conditions.

## Failure in the first stage
As unbelievable as it may be, a lot of borrowers do not even pass the first stage of verification. There are many rejections due to an inability to meet the prospective lender’s requirements as well as other issues such as age inconsistencies or an unstable income.

One way to avoid such a situation would be to ensure the eligibility criteria of lenders. When completing a loan application, it’s important to state all the details correctly.

The lender will check your credit report and verify your details. If both parties are not compatible, there is a good chance your application will be rejected.

## Hidden charges
Most people tend to ignore any charge that is not the interest rate. You shouldn’t do this. These charges can become a really big problem later. Some fees that are not mentioned when you take out a loan are processing fees, fines on late payment, charges on prepayment, transactional fees etc.

As a rule of thumb, it’s important that you ask your prospective lender questions regarding other fees to prevent surprise fees.

## Credit score
One’s credit score says more about their finances than one could ever say about themselves. It’s an honest indication of your financial skills. And no responsible lender will be enthusiastic to “compromise” when it comes to your credit score.

Lenders need to verify your creditworthiness before lending because as we always say, a lender who’s not afraid to lose their money is dangerous. No lender would lend to someone if they were unsure of the person’s capability to repay the loan with interest. Here are some tips to help you boost your credit score.

## Documentation mishap
Several go into loan application and approval, fortunately, digital lending platforms have made the process oh-so-easy.

Yet, there are some necessary checks that lenders can’t compromise on. Lenders carry out a careful assessment of your documents as well as confirm genuineness through live-means and this can be an extensive process.

However, all the work that goes into this process is not only important but also essential to avoid any future issues. The best method to go about this process is to make a checklist of all the required documents before submitting them to the lender. This prevents issues of misspelled names, inconsistent data etc…

## Liveness check
We earlier mentioned how lenders verify your identity through live-means. This is what we mean — Irorun, for example, will need you to do a face match to confirm “genuineness”. This becomes an issue when one is in an environment with bad lighting, thereby discrediting their authenticity. We no fit give loan to who him face no show o!

Although it might seem frustrating, Irorun only does this in your best interest. You should put an effort in making sure your facial details show up clearly (take pictures in places with good lighting), failure to do so can lead to a rejection.

There are scammers out there who could have the complete details of another individual but they won’t have the same face. So, a facial match helps prevent fraudulent acts like identity theft.

## Access to data
People tend to feel vulnerable when they give a site or app access to their data, they tend to think of the worst-case scenario. I mean who can blame them, there are some malicious lenders out there, but despite all that, ethical lenders will never misuse your data. Here’s why you can trust Irorun to never misuse your data.

Granting access is not necessarily a bad thing as some vital information they need to process your identity could be gotten from your device. Some people, without knowing the implication, deny lenders access to their devices and this can cause lenders to doubt your authenticity. Remember, that the lender is also taking the risk of lending to you.

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We’re just a message away, talk to us at support@irorun.com to get answers to all your questions and assistance in securing your first loan!

7 common loan issues


It’s an awesome idea to [opt for small loans to build your credit score!](http://irorun.com/) We agree!

But here’s the thing; many predatory lenders are eagerly waiting to get hold of anyone who’s in desperate need of a QUICK loan.

And because you’ve been our day one we’re going to tell you 3 red flags you must watch out for before you transact with any lender:

## Insanely high-interest rates
A predatory lender is out to take advantage of anyone who’s in desperate need of a quick fix, so they are likely to give out small loans with ridiculously high-interest rates.

Take, for instance, you have plans to take out a loan of N5,000 and a lender offers an interest rate of 50%, at first having to pay N2,500 on N5,000 might not seem like a big deal to you but the more you stew on it the clearer it’ll become. A 50% interest rate on such a small loan could be likened to daylight robbery and any lender who offers you such either expects you to be ignorant or desperate.

This over-inflation of interest rate on small loans is a big red flag for predatory lenders and could cripple your finances.

## No credit report checks
We know that to get approved for any loan there are important documents that should be provided and your bank statement/credit report is one of them.

So for a lender to jump straight to giving you a loan without any strict checks is really fishy isn’t it?

A high credit score is needed to be considered loan-worthy, especially for a large loan. Predatory lenders will try to play off this fact and get you to agree to a loan term outside your comfort zone with false promises of “your credit score doesn’t matter”. (This, my dear friend, is the first of many signs that this lender is setting you up for a destructive loan. FLEE!).

A credit report check shows more than just your borrowing and repaying, it also shows your spending and earning capability, and helps the lender provide the best loan terms for you.

For a lender to ignore your creditworthiness, no matter how small the loan is, is cause for concern (It’s giving we-don-catch-am vibes).

## Extra adjustable repayment terms
When you are given very long or very short repayment terms, it becomes a big problem.

A very long repayment schedule will mean that your interest gets higher as time goes on and it might even get to be equal to your principal(i.e original amount — interest rate).

While a very short loan repayment term can cause problems for you as you stand the risk of being unable to pool your funds together due to a lack of time. This is why an ethical lender ascertains the right repayment schedule for you through thorough checks on your credit history, bank statements and overall finances, leaving enough room for flexibility. Unlike the predatory lender whose methods of lending usually ties you to a destructive loan.

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Irorun understands that emergencies have a way of disrupting plans and making anyone susceptible to manipulation from predatory lenders and their destructive loans.

And that’s why we’ve shown you what to look out for in cases like that. Remember we’re only a message away from setting you up with the loan that’s right for you.

Send us a message at support@irorun.com to get started!

How to spot a destructive small loan

Have you ever wondered why interest rates may vary with each loan? And sometimes you immediately conclude “you’re being cheated.”

Well, that’s definitely not the case. No responsible lender is out to cheat you of your money. But certain factors could influence a lender’s decision on your interest rate.

Let’s jump right in 

## Type of loan
The type of loan you take out also affects your interest rate. Unsecured loans tend to have a higher interest rate than secured loans, this is because secured loans usually have collateral (usually a valuable item pledged to secure a loan) as a fallback in cases of the borrower being unable to pay their debt.

## Tenor of loan
Tenor refers to the length of time until the loan is due. For example, when you take out a five-year loan, you have a five-year tenor. Once you’re three years into repaying the loan, you have a two-year tenor.

In general, the longer your loan term, the less your interest rate will be. Loans with shorter terms usually have higher interest rates than loans with longer terms. In addition, loans for asset finance usually have lower interest rates.

## Operational expenses
Not all lenders are born equal. Some are manual and their cost per loan is high because of the human factor. This cost is passed to borrowers as fees and interest rates.

However, lenders with good tech and therefore a lower cost of operation usually charge a lower interest rate..

## Credit history and credit score
At this point, we might sound like a broken record with the number of times we mention “credit history” and “credit score” but the truth of the matter is, they hold a lot of importance in the lending world.

Your creditworthiness and history with other lenders can determine if you deserve a high or low-interest rate. It’s almost like being a devoted customer in your favorite store, if you go there enough times they’ll start to give you little benefits like a discount.

With a clean credit history and a good credit score, you have the opportunity of getting lower interest rates which reduces the amount you’d have to pay back. Really, won’t you prefer to have a 5% interest rate on your loan than, say, a 7% interest rate?

## Current employment history
Your current employment history also affects a lender’s decision on your interest rate. It’s generally believed that persons who have a noticeably stable job with high income seem more likely to repay loans as against someone who constantly changes jobs or has a low income and as such the former receives better interest rates.

If there’s a noticeable peak in your current employment status, your lender can determine how well you can handle a large loan with a high or low-interest rate, without default. Job stability is therefore essential if you wish to apply for a large loan.

## Debt-to-income rate
You may have come across this phrase in your search for more information about lending. The debt-to-income ratio is a measure of debt settlement to income, that is, how much debt you have to pay against your monthly income. When salary come, how much you go use pay bills and wetin remain after?

It’s highly advisable to calculate and be certain of your debt-to-income ratio before deciding to take out a loan with any lender. Someone with a high debt settlement, greater than their income is most likely to be rejected for a loan or given a high-interest rate.

## Economic inflation
A surge in economic inflation can have a rebound effect on the lender’s interest rate causing it to be higher than what it would normally be.

Economic inflation refers to the general exaggerated increase in the prices of goods and services. Remember that your lender is first a business owner and so loan interest rates could increase because they need to keep their business afloat as well.

Inflation affects a lot of services(of which lending is a part) in an economy, as such adjustments will be made accordingly, a lender isn’t going to remain stagnant while the economy is changing and causing a negative ripple effect in their business.

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Now that we’ve shared these highly coveted *secrets* with you, send us a message at support@irorun.com and let’s get you started on your first loan!

What influences the interest rates for loans?

Ever heard of the credit bureau?

The police officers of the lending world!

In this article, you’ll learn all about them, what they do and what it means for you as well.

But first, let’s put meaning to the word “credit bureau”

Credit bureaus are privately owned and privately operated data collection and analysis companies that gather and store information relating to the credit ratings of individuals and companies. They make these accessible to financial institutions e.g banks, lenders, microfinance institutions, etc. Service providers or landlords may also have access to credit reports.

Not all countries use credit bureaus but for the ones that do, their services are only applicable to the country they are situated in, this is because a credit score is only applicable within its respective country. If you decide to move to another country, you’ll likely need to build a new credit score.

## Why were they established?
Let’s dig into some fun history! Shall we?

In the late 1980s and the early 1990s, the banking industry experienced a wave of financial distress that was largely due to predatory debtors who hopped from one bank to the other; borrowing without repayment. These persons would abandon their debt obligations from Bank A, and proceed to obtain yet another, from Bank B. Wickedness abi?

This unrepentant behavior made the Central Bank of Nigeria see an urgent need to find a solution. A central database with everybody’s credit information was established in a bid to regulate the evil that men do.

As such, the Credit Bureau of Nigeria was established and was backed by a legislation Act that obligated banks and financial institutions to update lists of borrowers. As time went on, this highly updated and functional *list* determined the eligibility of intending borrowers. Voila! Serial loan defaulters reduced!

## What credit bureaus do we have in Nigeria?
Credit bureaus are licensed by the Central Bank of Nigeria (CBN) and these licenses were granted to three private companies:

FirstCentral Credit Bureau, which was incorporated as XDS Credit Bureau Limited in May 2005.
CRC credit bureau was established in 2008 under the laws of the Federal Republic of Nigeria.
CreditRregistry (CR services), which happens to be Nigeria’s oldest credit bureau, was established in 2003.

## Functions of credit bureaus in Nigeria
Below are some of the most important functions of the credit bureaus in Nigeria:

## Maintain and store credit information of borrowers
The information obtained by the credit bureau usually includes the contact details of individuals and companies. It also cuts across a history of previous loans obtained by the borrower. Information provided can further include whether or not the loan was paid in due time, as well as cases of bankruptcy and court order. This is especially useful for untruthful borrowers with hanging court charges.

## Central storage of collected information
The Credit Bureau Association of Nigeria wields the capacity to store a large amount of data in one place. Not only will this remain over a long period, but it’s also in a safe condition. Ideally, there is no room for loss, theft, or alteration of files and data (desperate borrowers can’t tamper with their data). This enables lending institutions to have long-term and accurate access to borrowers’ information.

## Provision of credit information upon request
When a lender requests credit information, the Bureau ensures it provides the report usually spanning 3 years. This ensures that the lender makes an informed decision regarding the creditworthiness of the prospective borrower.

## Eliminate cases of serial loan defaulters
Remember our story of how credit bureaus came into existence? Exactly, to manage the credibility of information given to lenders by borrowers. To curb lie-lie borrowers.

In the absence of credit bureaus, anyone could easily obtain loans from multiple lenders and run away with the funds.

## Increased access to loans
It’s not only lenders that benefit from the credit bureau. Before its establishment, gaining access to loans was tough. In those days, you either had to own valuable collateral or you knew someone that knew someone…You know how it goes.

This was because there was zero trust in the credit world and lenders were constantly at a loss, therefore they had strict checks in place before a loan could be granted. But, since the establishment of credit bureaus, it’s relatively easier to access loans. The bureau only provides a credit information report to your lender and you get vetted. Win-win situation right?

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If you have more questions or need help getting your first loan, send us a message at support@irorun.com, and we’ll be happy to assist you!

Who are the credit bureau and what do they do?

Have you been struggling with navigating loan repayment?

All that struggle is about to be history

In this article, we’ll show you 4 ways to repay loans on Irorun.

Let’s dive in, shall we?

## Fund your Irorun virtual account via debit card
To use this method, you need a valid Mastercard or Visa card (unfortunately, Verve cards are not accepted) alongside a unique link created for you.

When you click on this link, you’ll be redirected to a payment gateway page where you’ll be required to input your card details which include: card number, card expiry date and CVV (the three-digit number on the back of your debit card).

Once that is done, a confirmation email or message will be sent to you with a code to verify that yes! you are the one making the transaction (the email or phone number will be the one connected to your card/bank account).

## Bank transfer to your Irorun virtual account
This might just be the most common method of funding an Irorun wallet account (right after using a debit card, of course).

This method is quite easy. When you originally log in to your Irorun web or mobile app as you, your Irorun-issued virtual account detail is on your dashboard (AKA Sparkle account).

Copy this account detail and input it into your bank app to make the transfer. The details given to you will include an account name and an account number unique to your Irorun account.

As long as you use the virtual account created for you upon your registration, you will be able to make transfers for your loan repayment.

## Fund your Irorun virtual account via USSD
This method is a lot like the bank transfer method but without the use of the bank app. Every bank has a unique USSD code that allows you to carry out bank transactions (transfers, bill payments, buying airtime etc.) without the bank app and need for data.

First, you copy your virtual account number from your dashboard when logged in and then you make a transfer to that account using your respective bank USSD code.

This method is great for individuals who can’t access mobile data and are short on time.

## Use the payment link
This fourth option is a combination of all three(3) options above. All Irorun users are assigned a unique link that is either used to make loan payments directly or indirectly as in friends and family. Here’s how others can help you pay back your Irorun loan.

Once this link is clicked, the user is shown three(3) options with which to make payments. These options are:

- Pay with bank transfer: Once you choose this method, you’ll be given your Irorun wallet account details to make a bank transfer.
- Pay with card: This method redirects you to a payment gateway page where you are required to input your card details.
- Pay with USSD: With this method, you’ll be required to make a bank transfer to your Irorun virtual account using your bank’s associated USSD code.
…

Now that you’re well acquainted with how to repay your loan. Let’s find out what could possibly go wrong if one fails to pay back their loan and also the benefits of timely loan repayment.

## Woes of avoiding your loan obligation
- A formal report will be made to the credit bureau and one ends up on a hard-to-wipe-off blacklist
- Court charges and multiple fines to pay, which end up being more of a financial constraint
- Ruined reputation and thus make it increasingly hard to get loans from other lenders
- Credit score takes a hit (as much as 110 points from just one missed payment) and this lowers one’s chance of getting favourable loan terms (large loan amounts and low-interest rates) and loans from other lenders in general
- Accumulation of extra debt in the form of late payment fees or prepayment fees (depending on your perceived offence).

## Benefits of timely loan repayment
- Credit score gets a boost which increases chances of favourable loan terms
- One gains a trustworthy reputation in the lending world, this increases the chance of lenders willing to trust you with their money
- One attains a more stable financial position allowing them to save up money, and have all debts cleared off while maintaining a good standard of living
- Less feeling of anxiety and stress (no more hide and seek with lenders).
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As always, we’re available to answer all your loan-related questions and assist you in applying for your first loan. Send us a message at support@irorun.com and let’s get you started!

4 ways to repay loans on Irorun

What have you heard about credit reports?

If you’d like to know more…then you’re welcome

First, let’s see what it means…

A credit report is a thorough examination of your credit history prepared by a credit bureau. Credit bureaus gather financial information about you and use it to generate credit reports, which lenders use along with other details to determine your creditworthiness.

In the same sense, you could simply say a credit report is a summary of your past and current credit information. Your credit report may be regarded as a dependable friend or a looming shadow it all depends on the status of your credit accounts at the time and the history of your bill and loan payments. This means that a dirty financial past may turn the ever-dependable credit report into a dark shadow hanging over you.

The process of applying for a loan may seem overwhelming if your financial past has been bumpy. You can prepare for what to expect by knowing what information is on your credit report and how it affects your credit score.

What information appears on your credit report?
Let’s take a look at what’s inside the credit report.

Credit reports contain a wide range of financial information peculiar to you. The following information is frequently found on a credit report, regardless of the credit bureau.

## Personal information
Identifying information, such as your entire name (and any alternative names you may have used in past credit applications, such as surnames before marriage, and your name without your middle name.)

It also contains information such as your birth date, current and previous residences linked to your credit accounts, phone numbers linked to your credit accounts, current and previous employers you’ve listed on credit applications, and more.

This information helps in the confirmation of your identity and to prevent fraudulent acts from being carried out with your identity.

## Accounts
The credit report contains information about your current and historical credit accounts from the last seven(7) to ten(10) years, including installment accounts (loans), the name of the creditor/lender, the opening date and/or closure, the status (such as current or past due), the credit limit (for credit cards) or loan amount, your payment history, and so on.

## Inquiries
Additionally, your credit report contains details about the organizations — loan companies included — that have viewed your report as well as the dates and times of those accesses.

## Information that does not appear on your credit report
Credit reports contain a lot of information, but they also exclude some personal and financial details. Here are a few details you won’t ever find on your credit report:

## Marital status
An individual’s past or present marital status has no place in their credit report. Apart from it being deeply personal and intrusive, it’s not a suitable measure of an individual’s financial status (good or bad) and therefore, has no effect whatsoever on one’s credit score.

## Income
One’s income from their place of employment is also not included in a credit report. Although some lenders require such information before making a loan application decision.

## Bank account details
The credit report also doesn’t contain an individual’s bank account details. However, certain details, such as your bank account statement are considered by a lender when reviewing a loan application. This confirms one’s cash inflow and outflow and helps the lender determine if the client can afford the loan.

## Education
The educational level or history (past or present) is not included in a credit report. So don’t worry if you crashed out of the university, it has no bearing on your creditworthiness. What must be noted is the individual’s age, as any loan application is only legal for persons aged 18 and above.

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As always, Irorun brings the most useful information to you and is further available to answer your questions and offer assistance in securing your first loan, send us a message at support@irorun.com!

What is a credit report and what can be found on it

“Just because it’s been said many times by many people doesn’t make it true”

And that’s why today, we’ll be debunking six(6) loan myths.

Let’s get to it!

## Loans are only offered by banks
Maybe in the early 1800s, this was true. The myth that banks are the only financial institutions that provide loans to individuals has been debunked a million times over.

While banks are among the financial entities that provide loans, there are several registered and recognized non-banking financial companies (NBFCs) that provide loans to individuals such as microloan companies, digital lenders, credit unions etc.

## Low credit score means loan rejection
Although a poor credit score may affect the outcome of your loan application, it doesn’t ensure that your loan application will be denied.

Although your credit score is highly considered for a loan to be approved, other factors come into play. For example, lenders will also consider your age, income, the authenticity of your documents, your debt-to-income ratio, and other variables before deciding whether to approve or reject you. Here’s how you can boost your credit score.

## Only salaried persons can apply for loans
It’s a common misconception that only salaried individuals who have a steady flow of income are eligible to apply for loans and this isn’t true.

Non-professionals, business owners, and anyone with a form of income may also apply for loans. As long as they meet the eligibility requirements of the lender, both salaried and non-salaried persons can and should apply for loans.

## Digital lenders are scammers
Another loan-related myth that has been dispelled but always rears its ugly head is the idea that all digital lenders are scammers and should never be trusted.

Loan scammers are unregistered and unethical lenders. They are unauthorized and yet always find ways to take advantage of unsuspecting individuals. But here’s the good part, If you exercise due diligence and verify a prospective lender’s legitimacy before applying for a loan, you won’t fall victim to these scammers. And on that note, here’s how you can spot a loan scammer.

## Loan application is complex
Decades ago, this was true. Now, the process of getting a loan is easier than ever. All thanks to the technology of digital lenders

The age-long misconception that you must wait weeks or even months for your loan application to be processed is now a myth. Nowadays, obtaining a personal loan is as simple as filling out an online form and waiting a few minutes to a few hours for a response.

## Loans always have high-interest rates
A large majority of loans these days don’t require collateral, so it’s believed that they will have very high-interest rates, and this tends to put off people from applying for loans.

In reality, the interest rate varies from lender to lender and usually depends on your credit score and many other factors. Interest loans can be as small as 3% or as large as 40%. There are no hard and fast rules to it. The factors that come into play are the determinants of interest rates.

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If you have further questions or would like to get on board your first Irorun loan, send us a message right now at support@irorun.com!

6 loan myths that have been debunked

So many choices but who to pick from?

If this is you, wondering how you can get the best digital lender that’s a right fit for you. Then you’re in the right place

We’ve curated five(5) things to look out for in comparing digital lenders

Read further…

## Terms and conditions of each lender
No two digital lenders are the same, they might share some similarities but they operate differently and as such have varying terms and conditions.

That’s why when you want to choose a digital lender to borrow from, you should go through their terms and conditions with a fine-toothed comb, to comb out any uncertainty.

Understand the terms and conditions for each loan offer, including the interest rate, fees, and any penalties for late payments or prepayment. Do this for every digital lender you have an interest in and you’ll see the best one for you could be hiding in plain sight.

## The reputation of lenders
There’s a lot to be said about rumours and how they should not be believed, but do know that every rumour holds a grain of truth.

If you have an interest in any particular digital lender, and whispers are going around about them, you should take the time to make confirmations and not just work on blind faith.

Check the reviews of previous clients and see what value each lender is known for. Even a quick search of the lender’s name on a search engine can get you news articles and blog posts about that lender. You can also take a quick stroll on the Google Play Storeor Apple App Store review and see what others are saying.

## Customer service of lenders
The customer care service of any organization is usually the link between the customer and the business. So, you must keep an eye out because they’re who you’ll go to if you have any problems before, during and after a loan transaction.

Find out how responsive their customer service team is, their tone when they respond to their clients, how fast they respond to their clients (or if they respond at all), and what others have said about their services.

This can help you get a better idea of what it will be like if you ever find yourself needing help from the lender.

## Total cost of loan
It’s not just the loan amount + interest rate offered that you should look out for in a loan, most times there are extra processing fees that you might know nothing about added to the total cost.

This is why it’s a good idea to always read the loan terms or better still, ask your prospective lender. Look out for extra fees attached to the loan and make sure that it’s something you can comfortably work with. Here are some other questions you can ask your lender.

## Extra perks, rewards and discount
There isn’t anyone who doesn’t like to be rewarded or receive a discount on any of their purchases, Now imagine that in a loan setting. Awesome right?

There are numerous perks you could get for choosing one lender that you might not get with another. This is why you should find out what perks or rewards they offer; if they have reduced interest rates, flexible terms for loyal customers etc.

These discounts and rewards could be the defining choice that makes one lender more attractive than another.

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Now that we’ve shared our award-winning tips with you send us a message at support@irorun.com and let’s get started on your first loan!

How to compare different digital lenders

Ho! Ho! Ho! 

It’s the holidays and as you know MONEY makes the holidays even more fun right?

As always, Irorun wants all her Rockstars to make smart financial choices even during the holidays and that’s why we’ve carefully handpicked ways you can responsibly use a loan this holiday season

Check them out

## Determine the amount of money you need
It may seem very tempting to borrow more than what you need even if it wasn’t the holiday season. That’s why you have to stay strong and think it through with your head and not your heart.

Take the time to make proper calculations and beat down any form of long throat. So, you need to determine the amount of money you need and borrow only what you can realistically afford to pay back.

## Consider the loan term
The loan terms may just be the most important aspect of a loan and what you should put your focus on when taking out a loan, especially during the holiday season.

Always take the time to look through the loan terms properly and make inquiries about what you don’t understand. Never let your lender rush you through the loan terms as that may be a sign they are hiding something from you.

Consider the terms of the loan, including the interest rate, processing fees and the repayment schedule when you want to take out a loan.

## Compare loan offers
Don’t just pick the first loan offer that comes your way. Put in the effort to compare different loan offers, and remember that lenders have different loan packages and there will always be one that will fit you perfectly (or near perfect). Don’t let the rush of the holiday push you into settling for just any loan.

Every loan offer is different in one way or another, so compare them and find the best option for you.

## Avoid loan default
You should never make any plans to take out a loan with thoughts of defaulting on your mind. There’s a lot that could go wrong. Plus that’s wickedness na!

Make sure you understand the consequences of defaulting on the loan, including penalties, credit score damage, blacklisting etc. As you plan to take a loan for the holiday, ensure you include the loan repayments plan as well. There’s life after detty December.

## Make a budget
You can never go wrong with the good ‘ol budget plan. A budget can help you get all your expenses in order including your loan repayments.

Plan a budget for the holiday season and stick to your budget to avoid overspending and financial strain. The holidays naturally come with a lot of expenses and a hike in prices. Luckily, with a budget, you’re assured of a sustainable plan to help you maintain your finances and keep you in check while having a good time.

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We wish you a happy (financially smart) holiday and as always, send us a message at support@irorun.com and let’s get you started on the holiday loan that’s just right for you!

How to responsibly use a loan this holiday

Have you signed? No?

Pheww! Glad you haven’t…

Before you say “yes!” to that loan, you must read, re-read and understand the terms and conditions applied.

And to make the process a lot less boring for you, we’ve written out 10 of the most necessary things you’d find in a typical loan terms and conditions AKA T&C.

Check them out!

## Principal and interest
When you take out a loan, your repayments are broken up into two parts — principal and interest. The principal is the original amount you borrow, while interest is the cost of borrowing the money.

Both are clearly stated on your loan terms and condition, and may just be the most important aspect. This is because whatever principal and interest rate are written on your loan terms and conditions, that’s what will be accepted during the loan transactions. Read the fine print to avoid stories of “I didn’t know”.

## Repayment terms
The loan terms and conditions also contain your repayment terms which are how long the loan is going to last and the repayment schedule.

This helps you get an idea of how you can make a budget that contains debt settlement. It also states how long you can go without paying your loan before you fall into default.

## Processing fee
The processing fee for a loan is a fixed non-refundable fee associated with the loan that helps the lender cover costs and the risk of approving the loan, as well as any fraudulent transactions that may occur.

This helps give you an idea of why you may not get the complete loan amount (for instance you getting credited with #49,000 instead of #50,000 when you apply for that amount). All these extra fees are always stated in a typical loan T&C.

## Loan purpose
When you are asked about the purpose of your loan, you believe the lender is asking because they want to know if that amount is worth it.

While this is true, the lender also takes a record of the purpose of the loan and builds restrictions based on the purpose given for the loan (this entails how you can and cannot spend your loan). Although this varies from lender to lender and also depends on what kind of loan you apply for.

## Collateral
The collateral chosen for the loan is placed in the terms and conditions for the benefit of both parties.

After the loan transaction is finalized, at no instance can the lender claim something else as collateral. But if the borrower is unaware of the full details of the collateral, he/she can fall prey to an unethical lender who may take advantage of his/her naivety. Read your terms and conditions o!

## Income stability status
Your creditworthiness and proof of your employment status or stable source of income are also included in your terms and conditions.

This is to show that the borrower was proven creditworthy of the loan that they applied for and that they could afford to live suitably even in the event of loan repayment.

## Third parties
This is any co-signer or guarantor to the loan. It shows proof that another individual served as a witness for the loan or that they’ve been tasked with the repayment of a loan in case the original borrower defaults and that they did so willingly and not under duress.

## Lender’s right in case of default
This includes all that the lender can legally do if the borrower defaults on the loan or makes late payments.

These rights most times include the collateral being seized by the lender, the lender’s right to sue the borrower, the lender’s right to issue penalty charges for any late payments made etc.

## Loan term renegotiation
This has to do with any provisions made for modifying the loan terms in the event that the borrower can’t meet up with loan repayments or could not afford loan repayments for any specific reason.

This will state if the lender is open to renegotiation and under what terms this renegotiation will occur.

## Legal justice
This is the governing law and jurisdiction for any dispute related to the loan. It states if a defaulter will be taken to the supreme court of law or any minor court of law to settle any dispute related to the loan, or if the defaulter will be charged with a fine.

## Blacklist (Bonus)
This states the governing bodies responsible for blacklisting loan defaulters, it gives you an idea of who you will be reported to when you default on a loan (it’ll also help you know who to go to when you get blacklisted). An example of these governing bodies is the credit bureau, check out who they are and what they do.

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For further questions or clarifications, send us a message at support@irorun.com, and we’ll be more than happy to guide you in taking your first loan!

What is found in a typical loan terms and conditions

Reading your loan terms and conditions should be a necessity for any potential borrower, but just in case you don’t see why you should…

Here are eight(8) reasons why you should read the terms and conditions of your loan.

## Know your interest rate
Every lender has a different way of calculating their profits on a loan, and by profit, we mean interest rate. Just because lender A gives you an interest rate of 10% on a 300k loan doesn’t mean it’ll be the same for lender B.

Interestingly, lender B might even offer you a 5% interest rate on that 300k loan. When you get a loan offer with a slightly high-interest rate (any interest rate, really), you should compare it with the offers of other lenders to see if it’s the best for you or if you could find something better. In essence, you can find a loan’s interest rate clearly stated in the terms and conditions.

## Other processing fees
Some fees will be paid during the processing period that might not be explicitly mentioned but will be in the loan terms and conditions. Sometimes you wonder why you’d apply for a #50,000 loan and you’d be given #48,500, well that fee deducted is called a processing fee that you may not know about, except you take the effort to read through the terms and conditions.

Once again, we advise that you find out if any other fees are included in your principal amount (loan + interest rate) by reading the terms and conditions, then factor these fees into your budget before proceeding with the loan transaction.

## Repayment terms
Most borrowers tend to assume how or when they’ll pay back their loan but the truth is, you might think one thing and your lender, another.

The loan terms and conditions always contain accurate information on how long you’ll be repaying a loan for, how you’ll be repaying it and how lenient the lender will be towards a loan renegotiation.

Everything that has to do with your repayment will be included in your terms and conditions. Rather than assumptions or guessing games, ensure you read through the loan terms and conditions.

## Penalties
Now there may come a time when you’ll be unable to pay your loan on time (never say never), you may be offered a grace period by your lender or you may not (you have to inform them either way) but there will definitely be a penalty fee levied against you (amount differs between lenders)

All these (the grace period and penalty fee) will be included in your loan terms and conditions and happen to be very important knowledge to have for when you unintentionally miss your loan repayment. See why you should read T&C?

## Reporting
The lender might not outrightly say it but it may be stated in your loan terms and conditions. They have the right to report you to any of the functioning credit bureaus in the country if you default on your loan.

It’s advisable you read up on your loan terms and conditions for the knowledge of who you would be reported to if you perhaps bail out on your loan repayment.

## Guarantors
One thing you must take note of is that any guarantor (family or friend) that aids you in getting a loan is going to be punished if you default on loan repayment.

The loan terms and condition also contains what your lender is legally able to do to any defaulting guarantor. This is why you should be well informed of the consequences of defaulting on your loan obligation either as the direct borrower or as a guarantor. Here are some other consequences of defaulting on your loan obligation.

## Borrower’s rights
Yes, you do have rights as a borrower which means that there are things that you can and can’t do as a borrower. As well as things that can and can’t be done to you by a lender.

Reading the terms and conditions can help you discover and understand what you can and cannot do and if your rights have been infringed upon in any way. Check out some other rights you have as a borrower.

## Room for more questions
You can never have too many inquiries and reading the terms and conditions is bound to leave you with more than a few.

Reading the terms and conditions allows you to ask a lot of questions you’ve had in mind and even those you didn’t think about previously. It will help you clear up any misunderstandings and uncertainties before transacting.

Remember, any lender who’s not interested in providing clear answers to your questions may just be one you should steer clear of.

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Send us a message at support@irorun.com and let’s help you get your first loan!

8 reasons why you should read loan terms and conditions

Pheww! We made it to another year

We’re so glad to have you on this journey with us. If you’re new to this community — welcome aboard!

As always we come bearing financial gifts — we’ve carefully curated 5 reasons why January is the best time to get a small loan.

Check them out

## A fresh start in the new year
The new year usually comes with a lot of things; new resolutions, new lifestyles, and new plans, and most of these can’t be brought to life without financial resources. Yes or yes?

After the just concluded holiday festivities, you probably looked at your account balance and silently screamed , not to worry, we’ve got you covered.

Taking out a loan this January can give life to those business ideas you’ve had in your mind. Remember that the new year is the perfect time to turn ideas into reality. This fresh start sets a good financial pace for the rest of the year.

## End of holiday expenses
In direct relation to wanting a good start to the new year, the expenses of the end of the holiday can be a pacesetter for your need for a January loan.

There may have been a few things bought on credit or a few expenses left unpaid, well, a small loan can help you cover all that extra expenses. This way, you can channel your other finances to tackle January’s bill (coughs in house rent and school fees).

So take out that loan, sort out your expenses and get the new year on the right track.

## Fewer competing borrowers
Apart from New Years’ Day, January is still considered a time of celebration to a lot of people, they still walk around with that holiday high and that means less number of borrowers that you’ll have to compete with.

With a lower number of applicants, your chance of getting approved for a loan increases significantly (please note that due process won’t be ignored just for a lack of applicants).

The aftereffect of the holiday season makes January a great time to apply for a loan, don’t you think so too? We do.

## Opportunity to rebuild credit
Is there a big project you’d like to carry out in the upcoming year? Is your credit score too low to get the loan amount you’d need for it?

Well, now is a great time to start building up your credit score. Trust us, if you start now, by the time you need the cash for that project your credit score would be more than enough to get you that loan.

January is the best time to start the process of improving your credit score and building a solid credit profile that’s attractive to lenders.

## Access to special offers
Here’s a secret that you may not know since it’s the start of a new year, every business owner (lenders included) is fishing for new clients, and so it’s raining special offers and discounts.

We encourage you to take advantage of this opportunity, both new borrowers and existing borrowers alike. This is a time when your prospective lender might just be offering mouthwatering discounts and bonuses. Don’t say we didn’t do anything for you o!

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Once again, Happy new year our favourite Rockstar 

This year, Irorun hopes to help you achieve bigger financial milestones in 2023!

If you have further questions, as always shoot us a message at support@irorun.com, we’re more than happy to help you out!

Why January is the best time to get a small loan: 5 reasons you can’t ignore

Are you still in holiday high spirits? Or are you swarmed with so many January expenses?

If you’re the latter, read further. We had you in mind when we wrote this article. Check out 7 reasons you should consider a small loan for meeting your short-term financial needs this month and the many months to come…

Dive in

## Flexibility
One of the many perks of a small loan is the flexibility it offers to you as the borrower and the lender as well. It might be tempting to get a large loan when you have a minor financial issue, usually because you might want to spend what’s left of it on something else. Unfortunately, these large loans have more rigid terms attached which makes it tougher to get — unlike small loans.

With large loans, it’s more likely fixed for a specific purpose, for example; car loans, home renovation loans etc. Small loans, on the other hand, are more flexible, they can be used for a variety of short-term financial needs which tend to be along the line of unexpected expenses, emergencies or covering the cost of minor purchases etc.

## Speed
Smaller loans have faster processing time than larger loans and as such are great for meeting pressing financial obligations. It’s often faster to obtain a small loan than its counterpart — large loans

The speed at which you can get your loan matters even when your financial needs are short-term or not very pressing. This is another solid reason, small loans are best recommended for short-term and urgent financial needs.

## Ease of qualification
When applying for a large loan, the amount of documentation needed can honestly be quite frightening, but the same can’t be said for small loans.

Small loans often have less rigid qualification requirements than larger loans and as such makes them more accessible to obtain. Yes! We once again ask you to stick with small loans for your immediate financial needs.

## Affordable payments
Smaller loans have short repayment periods which makes them less likely to lead you into a financial dilemma or loan default. Before you blink twice, you don pay back sharp sharp

The shorter repayment period makes it easier to manage the loan without spending money kept aside for other expenses.

## Credit building
The importance of a good credit score can not be overemphasized. Small loans are easy to pay back and as such leads you to always pay back your loan on the due date. This produces a rebound effect of a credit score boost and an overall improvement in your credit profile. It also helps you establish a positive reputation in the credit world.

Some people take out small loans for building up a credit score that will get them the large loan that they require. Read here to find out more ways to boost your credit score.

## Convenience
Another star reason you should consider a small loan for meeting your short-term financial needs is the convenience it offers. Digital lenders now offer quick loans on the web or through mobile apps which is more convenient as opposed to the old way of seeking loans from financial institutions (coughs in many documentation and rejection).

These lenders have made it easier for you to apply and swiftly receive funds through an efficient system. Although there may be many predatory lenders who use this means to steal from borrowers — Here are ways you can check the authenticity of a digital lender.

## Customization
Small loans are flexible and not just in what they can be used for, they are also flexible in terms of your needs. This means that some lenders offer customized loan products that can be tailored to suit your needs.

So if one term or the other of your loan choice doesn’t agree with your need, you can opt for a customized loan instead. Loan customization is not offered by all lenders and it varies with each lender. We advise that you do your due diligence by asking your prospective lender the necessary questions.

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As always dear Rockstar , send us a message at support@irorun.com and let’s get you started on your first loan for the year!

7 reasons to consider a small loan for meeting your short-term financial needs Irorun

New year, New me…does that sound familiar?

If you have made new year resolutions as regards your finances, you’d be glad you read this article

We’ve carefully selected 7 reliable tips for sticking to your new year’s financial resolutions.

Take a look at them

## Start small
A lot of people tend to make new year financial resolutions but never stick to them. It’s either they can’t be bothered or it has become too much hassle to keep up with. We understand.

The mistake some people make is that they tend to make big plans, and these plans later end up looking unachievable in their eyes. The best start to a good financial year is to make small achievable goals for yourself, to build momentum and confidence in your ability to stick to your financial resolution.

## Make realistic plans
Having your financial resolution is all good but you need a solid plan to make sure that it works. Remember, results come from how effective the plan is.

Here’s how you can yield better financial results this new year; Write down your financial goals and create plans for how you’ll achieve them. You can create a short checklist under each goal, describing the weekly or monthly action you’ll take towards achieving your goals. Ensure these actions you’ve set to carry out are realistic, that is, they fit within your current cash inflow with considerations to your important needs. Once you have this down, try to stick to your plan as closely as possible.

## Set a workable budget
Keep a lookout on your cash inflow and outflow every month, and put a great amount of effort into creating a budget system that outlines your expenses and savings goal.

If you have a high-interest debt consider paying it up as a top priority to help you save money on interest and free up more money for other financial goals. Your first budget might not be it, but that’s okay, watch for patterns that work and those that don’t and make all the necessary adjustments. Rome wasn’t built in a day.

You may even consider setting up an automatic transfer to your savings account to make it easier to save money, this will help you stay on track with your financial resolution. Find the best option that works for you and suits your needs.

## Track your progress
Keep track of your progress toward your financial resolution, this may seem like it doesn’t need to be mentioned but it’s important.

You can make use of a budgeting app or even a journal to help you keep track. Set a time each day where you sit and record your expenses of the day and see if they line up with what you’ve made in your plan.

Make any adjustments as needed to help you stay on track.

## Find an accountability partner
An accountability partner will be a great help to you on your financial resolution journey. This is someone who will help keep you on track and remind you to focus when you begin to stray.

It could be a friend or family member, someone you trust. Share your financial resolution with them and let them hold you accountable to help you stay on track. No man is an Island.

## Seek out resources and financial advice
If you keep having trouble with the plan you’ve made or are unsure of how to go about making a plan, you should consider speaking with a financial advisor or professional to help you develop a plan for reaching your financial goal.

You can also utilize resources such as budgeting apps, online courses, and microloans that help build your credit history. All these can help you get a hang of managing your finances as well as keep you on track.

## Be patient and stay flexible
Sticking to your financial resolution takes time and discipline, and sometimes life happens, so it’s important to be patient and keep your financial resolution flexible.

If something happens that causes you to deviate from your plan or you don’t see immediate results, don’t get discouraged, adjust your plan and get back on track.

Don’t forget to celebrate your progress along the way, this can go a long way in keeping you motivated.

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Now that you’re ready to make smart money choices and smash those money goals this year! Send us a message at support@irorun.com and let’s help you fund that goal!

7 reliable tips for sticking to your new year’s financial resolutions

Credit scores are the ‘grade system’ of the lending world. It tells your lender what you scored in your previous exams (former loans). And your lender judges your creditworthiness by your past grades.

Since everybody wants good grades — Here are some key facts you must know about credit scores as a Nigerian living in Nigeria:

## A credit score is not a credit report
A credit report is a detailed record of an individual’s credit history and it contains a wide range of information about you and your accounts which include but are not limited to personal information, loans/debts, and payment history. While, a credit score, on the other hand, is a graded numerical summary of the information above that determines an individual’s creditworthiness. A credit score’s rating changes based on the information added to the credit report.

## A credit score is not permanent
A credit score can change over time, it’s not permanent or static. Depending on an individual’s credit history and credit management habits, the credit score can either rise or fall. You can prevent a credit score fall and improve the chances of a climb by; quick repayment of debts, frequent small loans etc.

Although, you should know that if an individual doesn’t take on any more loans, their credit score will remain static right where it is. As we mentioned earlier, the rise or fall of your credit score is fully dependent on how you manage your debts. Clear up all pending debts if there are any and watch your credit score gain back its life.

## Paying off debt might not improve your credit score immediately
We know that you have been told that paying your debts on time can help you improve your credit score, but this doesn’t always happen immediately. It takes some time for the credit bureau to update your credit report and as such, some debt may reflect on your report for a long time.

This doesn’t mean that your credit score will be graded incorrectly, only that it will remain as it was until your credit report has been updated by the bureau. This is why we advise that you avoid the pit of bad credit scores, the woes far outweigh the pros.

## Having a high income does not guarantee a good credit score
Here’s another important fact to know about credit scores — your income has absolutely nothing to do with your credit score. A credit score can only be affected by an individual’s credit history.

A high income may be able to secure you a large loan, but it’s what you do with that loan that determines if your credit score will be good or bad. Repaying debts on time or at the due date is a good way to get a good credit score. The idea that wealthy people have better credit scores than the average earner is false. Again, we say that your credit score is only affected by how you manage your debts.

## Not having a credit history can also negatively impact one’s credit score
Individuals who have no credit history, have no credit record and as such, have no credit score. This makes it hard for lenders to determine if they are trustworthy.

Lenders consider a lack of credit history as a big risk, as they have no way of knowing if the individual asking for a loan is actually creditworthy and will not run away with their money.

But here’s the thing, as an individual with no credit history e.g a university student in Nigeria, your attempt to gain a credit history should start slow by applying for small loans with short repayment periods that you can pay back with ease. This helps you slowly build a credible credit history.

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In 2023, we hope to further educate the average Nigerian on the necessity of having a credible credit history through responsible loans from ethical lenders.

We also work towards a total mind shift of Nigerians about the negative myths surrounding “loans”. We do all of this by sharing the right information with you.

You can send us a message right now at support@irorun.com to get all of your loan questions answered and perhaps be on your way to your first loan with us!

5 facts you must know about credit score in Nigeria

Have you always had this thought about loan repayment? — “it doesn’t matter when I pay back, as long as I pay.”

Here’s the thing, there are key benefits (you may or may not have been missing out on) for individuals who pay off their loans early and since we’re still in the season of giving, we’d like to share 5 of these benefits with you.

Check them out!

## Improve credit score
One’s credit score is a major ticket to getting larger loan amounts, better approval rates, as well as favourable terms and conditions. How can you get a good credit score? By paying off your loan early.

Taking the initiative to pay off your loan early, before the due date elapses can help you improve your credit score and make you eligible for better loan options.

## Get out of debt faster
No one likes to be in debt and when they are, they want nothing more than to get out of it. You should work to get out of debt faster by paying off your loan early As this enables you to focus your finances on other key expenses. It’s also important to know that the faster you get out of debt, the less likely you’re to fall prey to financial woes.

## Improve cash flow
Another major benefit of paying off your loan early is the improvement it brings to your overall finances, especially your cash flow. When thinking about their daily expenses, one takes into account their cash flow (income + expenditure). An individual who is in debt has a reduced inflow of cash to cater for their other expenses, this is because a part of their income is removed to focus on clearing debt. But, when the individual channels all their resources to pay off their loan early, it creates more room for them to have full control and ownership over their income.

## Good reputation with lenders
Paying back your loan on time helps you build a good relationship with your lender. A lender who trusts that you will always pay back your loan on time will be willing to lend to you.

Having a good reputation with lenders opens you up to better opportunities to be eligible for larger loan amounts and longer loan terms.

You can’t go wrong with having a lender that trusts you, they will be eager to cater to your loan needs especially in times of emergencies because they are certain you won’t delay your repayment or try to trick them.

## Peace of mind
There is nothing better than knowing that you are debt-free and can spend your money on what you need and also what you want.

Debts, most times, can be a huge weight on your shoulder. They tend to stress you out and take away your focus from your financial goals.

Paying back your loan early can give you the peace of mind that allows you to concentrate and smash the other financial goals you’ve set for the year.

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If you require further information or assistance on how you can get your first loan, please send us a message at support@irorun.com, we’ll be happy to help!

5 benefits of paying off your loan early

Do you still frown your face and feel uneasy when you hear the word “loan?”

Do you still have some unresolved fear or doubt about anything loan-related? 

Then you’re in the right place — this article shows you 7 reasons why taking out a loan is no longer considered scary.

Check them out

## Increased accessibility
One of the major reasons why individuals used to be apprehensive about taking out loans, was mostly due to the inaccessibility of loan agencies and credible lenders. Fortunately, with the steady rise of online lending platforms, it has become easier for individuals to access loans even from the comfort of their homes with minimal documentation, favorable fees and hassle-free. This has greatly improved the face value of how most individuals view loans these days.

## Improved lending standards
Lenders have become more stringent in their lending standards, ensuring the utmost principles and values are upheld. They’ve also made it tougher for malicious individuals to run away from their loan obligations. These standards have also made it difficult for fraudsters and identity thieves to carry out criminal plots, and have made it nearly impossible for individuals to take out loans if they don’t have the means to do so. All of these improved standards have helped in assuring individuals that it’s okay to apply for a loan now. It’s not so scary anymore.

## Better loan products
There are now loan products that cater to the specific needs of individuals. Previously, there were recurrent issues with loans because of the rigidity, as loan terms could hardly be renegotiated and this caused a lot of borrowers to fall into default.

Now, loans can be adjusted to meet the needs of the borrower with terms that are acceptable to both parties. Do you see why it’s not so scary again?

## Greater transparency
Some lenders, without the enforced laws, previously relayed their terms and conditions with lending jargon. Some lenders were also guilty of hiding or stylishly omitting certain key information that could affect a borrower’s loan, causing the individual to get stuck in bad debt.

Fortunately, the laws and policies enacted have made it compulsory for lenders to disclose all terms and conditions clearly and concisely, making it easier for borrowers to understand the full cost of borrowing.

## More flexibility
Loans are no longer scary and it’s also thanks to the flexibility of some loan products, there is now an increased repayment period flexibility, which allows borrowers to choose a repayment period that suits their budget.

In this way, borrowers can take out loans and pay them back without putting a huge dent in their finances.

## Improved customer service
It used to be difficult for borrowers to make enquiries about loans or get in touch with the lender when they had a problem that may affect loan repayment.

Lenders have now improved their customer service to help borrowers throughout the loan process and to answer any questions they may have. Send our customer support team a message at support@irorun.com and let’s get you started on a loan product that fits you.

## Better loan management tools
It’s not easy to manage a loan and that’s why many lenders now offer loan management tools online that help relieve that burden.

Tools like automatic payments and portals for tracking payments and balances have been made to help ease loan repayment and keep track of current or previous debts. All of these tools help borrowers stay out of bad financial situations and protect their credit history.

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Now that we’ve been able to convince you that the lending world is not so scary anymore — Reach out to us at support@irorun.com, and let’s put you on a loan that fits your current financial situation.

7 reasons why taking out a loan is no longer considered scary

Have you ever had that “debt” that you planned to repay but something just happened and you found it difficult to repay?

The truth is most of us never planned to owe. We all think we can pay until it’s time to pay.

Today we want you better prepared to tackle any unforeseen circumstances that might hinder you to pay back your loan at the right time.

Check out 5 ways you can prepare for loan repayment before borrowing:

## Create a budget
Creating a budget after you take out a loan is a great idea when considering your repayment but creating a budget before you take out a loan is even better.

Here’s why; when you take out a loan before creating a budget, you automatically have to tailor your budget to cater firstly to your loan repayment regardless of the effect it has on your living standard. On the other hand, when you create a budget before taking out the loan, it ensures that you don’t borrow more than you need or can repay.

It’s important to create a budget that takes into account your monthly income and expenses, as well as how much you can afford to set aside for loan repayment.

This also helps when you are negotiating loan terms. Yes or Yes?

## Shop around for the best loan
There is no rule that states “The first lender you meet is the one you must borrow from.” There’s a possibility you may not like the first lender at all; their terms may not suit your current needs. There is no harm in you checking out various lenders to find a loan option (and lender) that works best for you.

Compare different loans from different lenders to find the one that offers the best interest rate and terms that suit your needs. Check out how to compare different digital lenders and choose the best one for you.

## Understand the loan terms
Another way you can prepare for your loan repayment is by fully understanding the loan terms. Never rush into taking out a loan. Yes, you may have found the perfect loan option for you, but there are some necessary checks you must do before you transact with the lender.

Take the time to ask questions to get a better understanding of what the loan offers, read the terms and conditions applied to the loan option and seek clarification for any unclear detail. Do this before you accept the loan, as it helps you make a solid decision that will protect your finances as well as your standard of living. Always read the fine print!

## Consider the total cost of the loan
The total cost of a loan is a lot more than just the principal and interest. Other fees like processing fees, late payment fees, and prepayment fees should also be taken into account.

It’s important to consider the total cost of the loan before you borrow.

Ask yourself questions — “If I am unable to pay on the due date, will I be able to pay the late fee?”, “Will I be able to handle the extra cost of prepayment?”

These questions are important in assessing if you can afford a loan and also prepares you for repayment.

## Plan for unexpected expenses
“Expect the Unexpected”

As much as creating a budget and searching for the best plan can help you prepare for repayment, you should also take into account, emergencies.

Sometimes, the wheels of fate may spin and land on an unfavorable spot, and then one gets into a sticky situation.

Irorun encourages you to always have a plan ready for unexpected expenses such as job loss, illness, or other emergencies that may impact one’s ability to make loan repayments.

…

Now that you’re sufficiently prepared to handle a loan and all that it comes with, send us a message ASAP at support@irorun.com and let’s get you started on a loan option that suits your need.

5 ways to prepare for loan repayment before borrowing

A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that goes towards payment for debts. In other words, a debt-to-income ratio is how much of your income goes to paying debts. It’s like a score to show how much debt you have compared to your income. Think of it as what percentage of your monthly salary is spent on paying off loans.

Lenders like to know that you will not be stranded whenever you have to repay a loan from them, so they tend to make sure that you have a good debt-to-income ratio.

What do lenders consider a good debt-to-income ratio? A general rule of thumb is to keep your overall debt-to-income ratio at or below 43%.

The general idea is that a low debt-to-income ratio demonstrates a good balance between debt and income. That is, the lower the percentage, the better the chance you will be able to get the loan you want.

Since lenders tend to look out for your debt-to-income ratio, here are some ways it can impact your loan application:

## Approval chances
Some individuals pay off an allocated amount monthly, to clear up pending debts gotten from one means or the other.

A high debt-to-income ratio indicates that you have too much debt in contrast to your income, which can lower your chances of getting approved for a loan.

If a lender sees that you already have too much debt, you’re not likely to get the loan you’re looking for. We apologize in advance.

## Interest rate
Some lenders may use an individual’s debt-to-income ratio as one of the factors to determine the interest rate to be offered on a loan.

The higher one’s debt-to-income ratio, the higher the interest rate is likely to be. This is because the lender takes a higher chance/risk on the individual with a high debt-to-income ratio. The possibility that he or she bails out of loan repayment is much higher due to the already existing debt they’re yet to settle.

## Loan amount
Another way an individual’s DTI can impact their loan application is the loan amount they can be eligible for.

Lenders use a person’s debt-to-income ratio to determine the loan amount they can safely lend. With a high DTI, you stand the risk of only being approved for a smaller loan regardless of what you want. To qualify for larger loans, Irorun advises that you clear up all pending debts.

## Future loan opportunities
A lender might be willing to lend to you just once regardless of a high DTI. Consequently, they are likely to be reluctant to grant you future loan opportunities, as the lender is hesitant to take such a risk again. Once bitten, twice shy.

Remember, any lender who’s unafraid to lose their money is a red flag.

## Guarantor requirements
Having a high debt-to-income ratio will likely mean that you would need a guarantor to help you smooth over any issues you may have with repayment.

Lenders may require you to have a guarantor to serve as an additional source of repayment in case you are unable to make loan repayments on the due date.

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A low DTI makes your loan application a lot easier for you and your prospective lender. If you carry less debt, you can save more money on interest payments, as well as get the best loan option and term from ethical and responsible lenders. Here are a few advantages of a low debt-to-income ratio:

- It helps you qualify for loans with ease
- It indirectly helps you boost your credit score
- It gives you peace of mind
- It tells you if your financial status is good or on-the-verge-of-collapse

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As always, we’re available to answer your questions and provide you with assistance in applying for a loan. Send us a message at support@irorun.com and let’s get you started!

5 impacts of your debt-to-income ratio on your loan application

If you have decided to apply for a loan but are still weighing your options on which lending route to take. Keep reading…

In this article, we’ll show you 5 major benefits of the digital lending route over the traditional lending route to help you weigh your options better.

Let’s jump right in!

## Faster approval process
Have you ever been to a traditional (offline) lending agency? Well here’s the thing, they require a lot of paperwork and by that, we mean actual words-on-paper kind of paperwork.

This can be very frustrating especially if you urgently need that loan. They take a long time to process the information given to ensure accuracy and consistency and this can span several days.

Digital lenders offer a way out of this by using advanced algorithms and data analytics to process loan applications quickly, often in a matter of minutes or hours. This means you can get your loan approved by a digital lender a lot faster than you would if you applied through traditional means.

## Convenient access
Another major benefit of digital lending over traditional lending is the convenience the former provides.

XYZ and Co. Lending corporations is a little too far a distance to be traveling when you can simply get a loan right where you are in the comfort of your home.

Digital lending offers you convenient access to lending services through the use of your smartphone device without the hassle of back and forth transportation.

No longer do you need to take lengthy or multiple lengthy trips to the bank or lender’s office, saving you from wasting your time and money. Visit Irorun today to get started on your first digital loan!

## Transparency
Digital lending platforms tend to offer broader transparency than traditional lenders do. This is because the lending platform (app or web) has all information relating to the loan right on the platform for the borrower to see.

Your loan term, interest rate and repayment schedule are all made available for you to view at your convenience.

Traditional lenders may not give you enough time to view your loan terms and as such may hide clauses that you may never get to see before you agree to a loan. This can lead to a loan default that would potentially damage your credit score.

## Flexibility
Traditional lenders tend to have limited loan options and strict criteria regarding their loans. This has led to many borrowers having to make do and manage any loan option available to them. Occasionally they end up struggling to pay back their debts due to rigid loan terms.

Digital lenders on the other hand are very flexible, they offer a variety of loan products with easily adjustable repayment terms allowing borrowers to choose a loan that fits their specific needs and budget.

##  Improved customer experience
Digital lenders place a strong emphasis on offering a seamless and user-friendly customer experience, with quick approval, and round-the-clock customer assistance. Digital lenders understand that to foster a sense of loyalty and raise customer satisfaction, swift and efficient customer support is required.

On the other hand, traditional lenders may not always offer the most attentive customer support and this may leave you hanging and uncertain about the next steps to take or the clarifications that you desire.

If you have more questions or are ready to kick-start your loan application process, send us a message at support@irorun.com!

5 benefits of digital lending over traditional lending

Quite honestly, everyone wants their loan approved but not everyone gets their loan approved. But that doesn’t have to be you, with these 5 hacks you’ll have your loan secured with ease.

Let’s get started!

## Check your credit score
Are there really any loan problems you may have that don’t involve your credit score? The answer is yes but in regards to ‘getting’ a loan, your credit score may be the biggest contributing factor to why you were declined.

So before you get subjected to rejection from your lender, check out what your credit score might state before going ahead to apply for that loan. When you do this you can easily identify any issue or error that may cause your loan application to get rejected and take steps to correct them.

## Provide accurate information
It may seem too tempting to provide false information when asked, to make yourself seem more eligible for a loan but all that does is make you get rejected a lot faster.

Digital lenders use automated algorithms to process loan applications which rely on accurate data that is also consistent. Providing false or ‘slightly altered’ data can result in your loan application being rejected or delayed. Lies and technology are a bad mix.

So your best bet is to provide information that is accurate and consistent so your loans can be processed and approved faster.

## Reduce your debt-to-income ratio
A high debt-to-income ratio may indicate that you have too much debt in contrast to your income, which can lower your chances of getting approved for a loan.

Lenders also use your debt-to-income to determine the loan amount you would be eligible to receive. You stand the risk of only being approved for a smaller loan regardless of what you want if your debt-to-income ratio is too high.

Reducing your debt-to-income ratio by paying off all existing debts before applying for a new loan can greatly improve your chances of being approved for a loan by a digital lender. Read more about your debt-to-income ratio and its impact on your loan application process.

## Build your credit history
If you don’t have much of a credit history, now is the time to fix that. Consider taking out a small loan and making regular on-time payments to build up your credit history.

People who have no credit history, have no credit record and as such, have no credit score and lenders consider a lack of a credit history a big risk, as they have no way of knowing if the individual asking for a loan is creditworthy.

A good credit history is a sign of creditworthiness, so take out some time to build one and your loan approval chances will be improved. You’re welcome!

## Research loan options
Another hack that would increase your loan approval chances is dependent on you. We’ll tell you how…

In order to get a better idea of the loan product fit for you, you ought to do proper research on the loan options made available by your prospective lender. This helps you pick a loan option that is already tailored to your specific needs and qualification, making your loan approval all that much faster.

Remember, proper research of your prospective lender will save you from so many troubles!

If these hacks have been helpful to you — please share with your family, friends and even foes. Don’t forget to send us a message at support@irorun.com and let’s get you started on your loan application process!

Do you want your loan approved? Try these 5 hacks!

When it comes to loans, it’s always best to apply the art of negotiation. Don’t just take no for an answer. You can politely request your prospective lender’s audience and negotiate on the best terms that appeal to both of you.

Here are some tips to help you negotiate better:

## Understand your financial situation
The first step when negotiating loan terms is to do your best to understand what kind of financial situation you are in. This helps you assess your ability to repay the loan and helps identify loan options that work best for you.

Before you enter negotiations with a lender, it’s important to know how much you can afford to borrow. You can determine your borrowing capacity by doing checks on your income, expenses, debt, and savings.

Knowing how much you can borrow will help you negotiate loan terms that are realistic and affordable for you. That way, your lender is also ready to oblige.

## Research lenders and loan options
It never hurts to find out the many options available to you. It’s ill-advised to jump on the first loan available to you.

By researching lenders and loan options, you can pick out what lender has the best or closest loan options for you, identify the types of loans available and compare the benefits of each option.

This makes it easier for you to show that you have a bit of knowledge concerning loans, which can help you negotiate better terms.

You’re also able to identify factors such as your credit score or income level that could give you an advantage in the negotiation. Remember, you need to have sufficient knowledge to be able to negotiate smartly.

## Be prepared to make a counteroffer
You know how in a final-year project, you have to show the lecturers that you have done your research and defend your study. Well, negotiating loan terms is a bit like that.

Coming to the negotiation table with a well-researched proposal gives you more credibility and makes it easier to negotiate for better terms. If you can negotiate better terms, you may be able to save money on interest rates, fees, and other costs associated with the loan.

If you don’t make a counteroffer, you may end up with loan terms that are less favourable than what you could have negotiated.

## Focus on long-term costs
You can get a greater understanding of the loan and its effects on your finances by focusing on long-term expenses when negotiating loan terms. Most borrowers tend to concentrate on the interest rate and the monthly payments while negotiating loan terms.

You can clearly appreciate the true cost of borrowing money by taking the loan’s long-term expenses into account. This involves accounting for elements like the length of the loan, the total interest paid over the course of the loan, and any associated costs.

You can make use of this information to your advantage when negotiating loan terms by requesting a lower interest rate or a longer loan term to reduce the amount of interest paid over time.

## Keep your emotions in check
Emotions are great and all but when the situation calls for a calm head, they can cloud your judgment and lead you to make decisions that may not be in your best interest.

Keeping your emotions in check helps you focus on facts and figures of the loan terms, and be more objective in evaluating the terms being offered to you. This can help you to negotiate better terms, such as a lower interest rate, longer repayment period, or lower fees.

Lenders will be more willing to work with you if you keep a professional and respectful demeanor during negotiations.

## Final cross-checks
Carrying out final cross-checks on your negotiated loan terms is a no-brainer. This helps you confirm the accuracy of the information provided and helps you detect any error that may affect the loan terms.

Performing final cross-checks shows the lender that you are thorough and detail-oriented. This can demonstrate your professionalism and help build trust with the lender and is especially helpful if you are negotiating with a new lender or seeking a large loan.

We’re sure you’ve learnt a thing or two and we’ll be more than happy to get you started on your first loan. Send us a message at support@irorun.com!

Tips for negotiating loan terms with lenders

Hello there Rockstar!

Today, we’d be telling you all you need to know about uploading a valid means of identification on the Irorun platform.

Let’s get to it right away

## It is mandatory to upload a valid ID
Getting a loan is a delicate process that requires you to be identified properly, and to do this you need to provide the right information alongside a valid means of identification.

At Irorun, it’s required that you upload a valid means of identification such as a driver’s license, national ID card, Permanent Voter’s Card or an international passport.

If you don’t have one of these four government-issued IDs, then you would be unable to register for an account on Irorun and apply for a loan with us.

## Loan application can be done immediately after ID upload
Usually, you would have to wait a while for your ID to be confirmed before you can take out a loan but with Irorun, you definitely don’t have to do that. Awesome right?

Irorun allows you the opportunity to apply for a loan as long as all needed information has been provided including but not limited to a valid means of identification.

There is no need to drag your feet and keep on waiting for a confirmation message. You can immediately apply for a loan once your valid ID and other necessary information have been uploaded. Read the next point to get the full gist.

## ID can be verified at the point of approving the loan
Remember, we said you can immediately apply for a loan after you successfully upload a valid means of identification. Well, that’s because Irorun can simultaneously confirm and approve the authenticity of your ID while also assessing your loan application. This way you don’t have to wait for a million years *yawns*  before getting that loan.

You also don’t need to worry, as this doesn’t mean that your ID won’t be approved if you don’t immediately take out a loan.

## Incorrect ID uploads could lead to loan decline even if eligible
As we earlier said, there are only four(4) valid IDs that can be approved by Irorun when you sign up with us. See Number 1 point.

It’s important that you make an effort to upload a valid and accepted type of ID to avoid getting your loan declined. Even if you turn out to be eligible for a loan with Irorun, a valid ID is simply mandatory.

## School IDs are not accepted as valid IDs for loan application on Irorun
Unfortunately, students are not exceptions to the rules when it comes to ID upload on Irorun. A student ID card is not considered a current and valid means of identification in our loan application process. Relax, we’ll tell you why…

Most student ID cards don’t contain all the information needed to confirm your identity and are very easy to forge ??, so students are urged to provide one of the four (4) accepted valid IDs to be considered eligible for a loan.

## Certain types of loans require work ID as proof
Although work IDs will not be required from you as a means of identification, certain types of loans require a valid work ID as a form of proof that you work.

A good example is the payday loan or the salary advance loan. These types of loans require you to provide your work ID as proof that you actually work where you say you do. In such cases, we implore you to comply and provide said ID.

Now that you’re well aware of the nitty-gritty details of successfully uploading a valid ID on Irorun, we can’t wait to get you started on your first loan. Reach out to us at support@irorun.com to get started ASAP!

What you should know about uploading ID on Irorun

The newly elected president of the Federal Republic of Nigeria has been making the news since his inauguration. From fuel subsidy removal to the electricity act, and now our latest law in place; THE STUDENT LOAN ACT.

This act was signed into law as an effort to make education accessible to students from all backgrounds who are at their tertiary level of education. The new student loan act offers up to N500,000 a year at an interest-free rate, as well as provides funds for all education-related issues, including textbooks, and research.

And since Irorun is your one-stop for the best financial news, we’ve curated an all-you-need-to-know article on the new student loan act. You’re welcome!

Facts you should know about the student loan act
We never want you to run on hearsay or “dem say dem say” and that’s why we’ll be taking a closer look at some of the facts of this new act. Shall we?

## Application criteria

You may already be wondering “What are the requirements, and how do I know I’m eligible?”. We got you!

The applicant must have gained admission into any Nigerian University, Polytechnic, College of education, or Vocational school established by the Federal Government or any state government: This means that the student loan act is only applicable to students studying in Nigeria. Sorry to our Diasporan readers…
The applicant’s family must have a yearly income that does not exceed N500,000: For those whose parents or guardians earn about a million a year, they don’t qualify for the student loan. Please note that this means; the monthly income in your family must be about N42,000.
Each intending applicant must have a minimum of two guarantors who must fall into one of the following categories:
Civil servants of at least Level 12 in the service — this refers to a civil servant with grade level 12 and earns between N255,000 to #N700,000 monthly
Lawyers with a minimum of 10 years of post-call experience — this refers to a lawyer of the federation with a minimum of 10 years of experience after being called to the bar.
Judicial officers or Justices of the Peace — a local judicial official who is empowered chiefly to administer oaths, perform marriage ceremonies, certify documents, and in some states may have additional judicial powers (as to issue summonses).
Disqualification criteria

We’ve seen the eligibility criteria, now let’s take a look at the disqualification criteria.

Parental loan default: If the intending applicant’s parent has been found to have defaulted on a previous loan, the applicant is immediately disqualified.
Applicant’s loan default: For an applicant who has taken out a previous loan and is found to have defaulted on the said loan, there is also an immediate disqualification.
Criminal offenses: If an applicant is found to be convicted of a felony (any offense punishable by death or imprisonment of 3 years or more without previous conviction), be found to be involved in a drug case or has been/is involved with examination malpractice, they are automatically disqualified from participating in the student loan act.
Repayment and penalties

This seems a tad bit unreal, doesn’t it? We’re all skeptical about how effective and helpful this new act will be to the average Nigerian youth

You may already be wondering how the student loan will be repaid and the associated penalties. Again, we’ve got you covered.

Students are required to begin repayment for the loan 2 years after their National Youth Service Corps (NYSC) program with a deduction of 10% from their monthly salary or total monthly profit (if they are self-employed).
Self-employed individuals must submit relevant information and documentation such as business name, address, location, registration documents (if applicable) within 60 days to the committee.
The chairman of the committee is to be notified of a job change within 30 days of working under new employment.
Failure to pay back the student loan will result in a fine of N500,000 or imprisonment for a term of 2 years.
This scheme is set to be managed by the Central Bank of Nigeria on behalf of the federal government. The governor of the CBN shall set up a special committee and head this committee as the Chairman. He shall also appoint a committee secretary.

According to the new act, students applying for loans must apply to the chairman of the education Fund committee through the student affairs officer of their respective institutions upon satisfying the criteria above. Loan disbursements are made within 30 days of the application reaching the chairman of the committee.

Now that you’re well informed of all the necessary details of the new student loan act. Will you be applying anytime soon? Are you eligible? 

Tell us what you think in the comments!

Tinubu has approved loans for students — are you eligible?

Hey there Rockstar, how’s it been at your end? We understand that the price hike in virtually almost all goods and services has been a whirlwind. And as always, we’ll be offering some ways small loans can help you navigate this new terrain. Let’s take a look:

## Immediate financial support
Small loans are a true godsend, there is so much that they can do for you, especially in the country’s current economic decline. Though they may seem insignificant, which we’re sure a lot of people think, they serve as a source of quick funds that offer immediate relief when individuals or even businesses are in financial need.

They’re not only readily available and accessible, but they also have the ability to reduce negative impacts that may be caused by delayed action. Let’s be honest, having immediate access to funds makes all the difference when one needs a quick financial fix.

## Covering unforeseen expenses
In a country like Nigeria where we experience constant change and difficulties, small loans can be instrumental in covering unforeseen expenses. These expenses could include medical bills, home repairs, vehicle maintenance, *coughs* the recent alleged 40% increase in electricity tariff  or other financial needs that require immediate attention.

As most financial emergencies do, they often come without warning, and one may not have enough savings or income to handle such expenses. This is where small loans come in, they provide a lifeline by offering the necessary funds to fix these unforeseen expenses ASAP. Best of all — They’re easy and quick to pay off!

## Mitigating the impact of job loss
Losing one’s job can have a terrible impact on their finances. At that point, everywhere you look seems to attract a repair or a fix or a replacement. There’s always something wrong that requires a financial solution. Whether it’s rent, electricity bill, groceries, transportation, they all seem to pop up just as you’re facing the strain of searching for a new job. Downsizing is a b*tch we totally agree!

Again, small loans to the rescue! With a small loan, one can keep themselves and their families afloat during the job loss period. Thereby reducing the impact it would have on their lives and creating a smoother transition to new employment.

## Avoiding expensive debt traps
During financial crises, some persons may be tempted to resort to high-interest loans, because they seem like a better option. After all you can never go wrong with more cash. Unfortunately, these lead to expensive debt traps and long-term financial struggles.

Small loans are a safer and more affordable option, and as a bonus, they don’t keep you in the debt cycle because while small loans have their interest rate, it is much more reasonable compared to other lending options available to individuals in urgent situations.

## Flexibility and accessibility
Small loans as we have consistently preached about are most often very flexible and accessible allowing borrowers to change the loan terms according to their specific needs and circumstances. This flexibility can help lift some of the financial stress associated with emergencies and make the repayment process more manageable.

With small loans, borrowers can choose the loan amount that fits their emergency, and then borrow only what they require. This prevents them from having the additional burden of excessive debt. It also reduces the likelihood of falling into a constant cycle of borrowing.

Send us a message at support@irorun.com and let’s help you fix that unexpected expense with your first small loan!

How small loans address financial emergencies in present-day Nigeria

Bad credit, simply put, is what an individual gets when they don’t handle their money well, which results in a low credit score.

A credit score is a three-digit number that shows how trustworthy someone is when it comes to borrowing money; the higher your credit score, the more trustworthy you seem, but when someone has bad credit, it becomes harder for them to borrow money. This is mostly because lenders begin to see lending to them as a risk not worth taking.

An individual with bad credit might have trouble getting loans, credit cards, or even renting a home. To improve bad credit, it’s important to start paying bills on time, paying off debts, and using credit responsibly. Over time, these actions can help rebuild a better credit score.

Now that you’ve been briefly introduced to bad credit, let’s delve further into it shall we? 


## Causes of bad credit
Let’s take a look at some of the triggers of bad credit

## Late or missed payments on loans or credit cards
When one consistently fails to make payments on time or skip payments altogether for loans or credit cards, it demonstrates unreliability in managing your financial obligations. These late or missed payments can harm your credit history and contribute to bad credit. Lenders are wary of anyone with consistently unreliable loan repayment schedules.

## High level of outstanding debt
Carrying a significant amount of debt compared to your income can indicate financial strain and an increased risk of default. When one’s outstanding debt is high, it suggests a heavy financial burden and makes lenders more hesitant to lend and even extend further credit, contributing to bad credit. Smart lenders stay running from those deep in debt.

## Unresolved financial obligation or default
Failing to fulfill your financial obligations, such as neglecting loan repayments or neglecting to settle outstanding debts, can lead to defaults. Defaults indicate a breach of trust between you and your creditors, negatively impacting one’s credit score. No lender wants to bet on uncertainty.

## Limited credit history or lack of credit account
If you have a limited credit history or no credit accounts at all, lenders have little information to evaluate your creditworthiness. Without a track record of responsible credit management, it becomes challenging to establish trust and can make it harder to obtain credit, potentially leading to bad credit. Very few lenders would take a chance on a first-timer or a no-timer.

## Implications of bad credit in Nigeria
Let’s take a look at some of the consequences of bad credit

## Difficulty obtaining loans in the future
Bad credit can make it challenging to secure loans from lenders. Due to a history of credit problems, lenders may view you as a higher-risk borrower, resulting in potential loan rejections or limited borrowing options. Oh! Bummer 

## Higher interest rates and fees on borrowed money
When you have bad credit, lenders may consider you a higher-risk borrower, which often leads to higher interest rates on loans or credit cards. Additionally, lenders may impose additional fees or charges to compensate for the perceived risk. Higher fees spell trouble for the individual trying to get by 

## Challenges in accessing bank loans and financial services
Banks and financial institutions typically have stricter lending criteria, making it harder for individuals with bad credit to access their services. This limitation can include obtaining bank loans, mortgages, or other financial products that require a good credit history. Not a good look on your credit profile 

## Difficulty starting or expanding a business due to limited financing options
Bad credit can hinder entrepreneurs and small business owners from securing financing to start or expand their ventures. With limited access to business loans or lines of credit, it becomes harder to fund necessary investments and achieve business growth. Most dreams are funded by loans or startup capital. Bad credit means a lower chance of getting that business off the ground or funded at all. 

## Negative impact on employment prospects and rental applications
Some employers and landlords consider an individual’s credit history as part of their screening process. Bad credit can raise concerns about financial responsibility, potentially impacting your chances of being hired or approved for a rental property. HRs are definitely not keen on betting on an employee with an awful financial history.

## Improving a bad credit score
Here’s how you can improve bad credit

## Paying bills and debts on time to establish a positive payment history
Consistently making timely payments for your bills and debts is crucial in improving your credit. This is a key factor in boosting your creditworthiness and staying off the bad credit path.

## Reduce outstanding debt by creating a repayment plan
Creating a structured repayment plan to tackle any outstanding debt is essential in improving your credit situation. By consistently making payments and reducing your debt balances, you demonstrate responsibility and decrease your overall debt-to-income ratio. A win-win for all!

## Building a positive credit history over time through responsible financial behaviour
This is essential for building a positive credit history. It includes managing your credit accounts wisely if any, taking out loans responsibly, and avoiding excessive debt. Over time, your consistent responsible financial behavior will contribute to a much-improved credit profile. Again, we cannot stress how important good credit is to your financial reputation!

Avoiding bad credit is important, but what’s even more important is aiming for good credit. It offers you a smooth gateway access to loans and financial opportunities, lower interest rates, and improves your chances of snagging that job.

Good credit brings stability and expands your options for achieving the goals you’ve set out. By being financially responsible, paying bills on time, reducing debt, and building a positive credit history, you lay the foundation for a better financial future. Rockstars can’t be caught slacking when it comes to money. And that’s why Irorun always curates the best all-you-need-to-money-right articles 

We know you have questions, shoot us a quick message at support@irorun.com and let’s get you making the right money choices ASAP!

Bad credit: understanding causes and implications


We always tell you what to look out for in bad online lenders and how to avoid them.

Today we also want to show you how to spot a responsible online lender.

Here are 5 things to look out for:

## Confirm their company registration status with CAC
The [Corporate Affairs Commission](https://www.cac.gov.ng/) is a government body that deals with the registry of companies, business names and incorporated trustees as a means to validate their existence and right to do business.

Any responsible online lender would have registered with the CAC and as such will have a registration number (CRN or RC). This registration number can be used to search for the authenticity of their business or company on the database.

To spot a responsible online lender, you must first check their website for an RC to be cross checked on the [CAC database](https://search.cac.gov.ng/home). If the app is a brand name, you must see if it can be connected to the actual company behind it and as such find out if it’s simply a knockoff or the real deal.

Note: Because a business website has an RC doesn’t mean it’s authentic, that is why you have to confirm with the CAC. You’re welcome!

## Check for their app on Google play store and App store
You have probably noticed that whenever you search for an app on the play store, they show the company that owns the app directly beneath the name of said app.

You should make sure to confirm that the company name displayed on the play store matches the one displayed in the company registry.

Most times, the Play store will show you that they have already done their research on the app and you’ll see that that app has been verified.

Still, if after you complete a check and see that the company name on the play store does not match the name in the registry, it might be someone putting up a copycat app or an attempt to scam others. Run o!

## Confirm their license
Is your prospective lender licensed by the CBN, a state body or in partnership with another Lender? Does their licensing look fake/sketchy?

If you have any reason to suspect that the license you have viewed is fake, you can always confirm with their RC.

Some websites you visit will have something close to a confirmation on where they’ll tell you where they are licensed, mostly seen at the bottom of their web page along with a helpline, email and physical address(authorized lending apps must have an address on their website even if they only operate online). This shows authenticity, so you should be on the lookout for these things whenever you go through a business website.

## Look for reviews from others
When you get on the Google Play store and check out a particular app, it’s best practice to check the reviews of others who’ve gone before you.

The reviews don’t just help you see what is wrong with an app but also what is right with it, and if it’s right for you. Actively seek out others who have experience with the app and ask (or read about) their opinions. Read reviews not just on the play store but online as well.

Carry out an active search to look for reviews on your prospective lending app, once you’ve done this you can compare and contrast to see if that lender is a good match for you. When it comes to money, you can never be too careful.

## Be wary of lead gatherers with no real loans
Sadly, there are loan apps that exist solely to gather leads/ data of unsuspecting individuals to sell them to the highest bidder. This is why it’s important to look out for reviews and carry out checks on your prospective loan app.

Ask family, friends or even foes about the apps (what they’ve heard, thought or experienced with the app in question) before proceeding with any transaction.

It also wouldn’t hurt to carry out your investigation before you transact with us. [Start here!](https://irorun.com/)

**Bonus tips**
- Check website ownership
- Study the app’s responsiveness and interface
- Check for recent and previous social media presence.
…

As always, Irorun arms you with the right knowledge to help you experience seamless transactions with ethical and authorized lenders.

For further questions and assistance send us a message at support@irorun.com!

How to spot a responsible online lender

Have you found yourself in a fix and can’t seem to pay back that loan you owe?

Is your lender hounding you to pay off your outstanding debts?

We understand your first instinct may be to hide and play coy with your lender. But here’s the truth of it all; YOU’RE MAKING IT WORSE!

We understand your plight and have done the work for you. Keep reading to find out what to do when you struggle to pay back that loan

## Assess your financial situation
A lot of people struggle with loan repayment and end up defaulting, mostly because they may be dealing with some financial crisis that affects their loan repayment.

The first step to be taken to fix this is to assess your financial situation. This may not seem important at first, but if one takes the time to look at their current income level and stability, and analyze their monthly expenses. They’ll find areas where one can cut costs to allocate for loan repayment.

As we always say, it’s important to know where you stand financially. It helps you come up with effective solutions to manage your loan payments. This means assessing your available funds and making practical decisions for repaying your debts.

## Communicate with your lender
Don’t ghost your lender! It’ll do you more harm than good. Regular communication with your lender when you’re experiencing difficulties with loan repayment is necessary. Discussing openly with your lender can clarify your loan management options.

This includes learning about potential repayment plans, negotiating revised loan terms, and exploring temporary relief options. Communicating with your lender promptly can help you avoid penalties, protect your credit score, and establish a more manageable repayment plan that fits your current financial situation. Lenders are often willing to work with borrowers who demonstrate a genuine intention to fulfill their obligations.

## Explore loan restructuring options
Now that you’ve communicated with your lender, exploring the loan restructuring options given to you is the next step. Loan restructuring involves considering various alternatives such as loan modification, consolidation, extended repayment plans, or income-driven repayment plans. Each of these options offers you unique benefits and considerations that can be tailored to your specific needs and financial situation.

This is why we keep doubling down on early communication with your lender; discuss the available options, and evaluate their implications in terms of interest rates, repayment terms, and overall financial impact. This helps you find the best solution for your situation and manage your loan repayment effectively.

## Explore additional income stream
We all need the extra income and that’s why obtaining secondary sources of income can be very helpful when one struggles with loan repayment. Seeking out opportunities for side jobs, freelancing etc can increase one’s overall cash flow.

Additionally, one can also start an online business or consider part-time employment to provide extra income that will be strictly allocated towards loan payments. Trying out these options can make it easier to meet your loan obligations with ease.

## Strict budget and payment plan
One who fails to plan, plans to fail.

This holds true for money matters as well. This is why we consistently preach the gospel of good budgeting. A strict budget and payment plan is just what any loan defaulter needs to fix their loan repayment struggles.

By making use of a budget, one can carefully manage their income and expenses, allowing them to allocate funds towards loan payments effectively.

This involves tracking income sources and analyzing expenses to find ways to cut costs and free up money for loan repayment. With a structured payment plan, the individual can set up a clear schedule for timely, consistent payments to their lender.

Following this plan helps you control your finances, stay on top of loan repayments, and achieve your financial goals.

... 

If you’re having difficulty paying back that loan and would want to ask more questions, send us a message at support@irorun.com and we’ll get you back on track!

What to do if you struggle with loan repayments?


Unlicensed lenders AKA loan sharks mostly prey on families of low income or those who find themselves in difficult times and in dire need of a quick fix. *Urgent 2k*.

Here are a few ways to recognize them. As they operate outside the law, you’ll likely:

**Be offered a cash loan:** Most loan sharks tend to operate with cash, but do take note that some may operate online as well.

**Notice a lack of paperwork:** Loan sharks won’t give you a formal agreement which makes it easy for them to change loan terms in their favor at the drop of a hat.

**Get poor/vague loan terms:** Loan sharks tend to be unclear about the amount of interest they charge and repayment terms. Sometimes, they might straight up give you outrageous terms to work with. (But since you’re in urgent need… you feel as though you have no other option).

Get a loan without the necessary checks: Loan sharks won’t conduct any checks or assessments before giving out a loan. (It’s giving sketchy abi?).

**Face harassment and threats if you are behind on repayment:** Unauthorized lenders are not afraid to resort to threats of violence and harassment if you are behind on your loan repayment.

**Be pressured into borrowing more:** The moment a loan shark gets you to borrow from them, they’ll charge you such high-interest rates that you’ll never be able to repay in full. They may even convince you to borrow more from them in the illusion of paying off your previous debt with the new one.

The purpose of this article is not just to help you recognize these loan sharks but to give you a way to sort out any issues that you as a borrower may face when confronted with a loan shark you borrowed from.

## Formal report to the authorities
When you are being harassed and threatened by a loan shark, a formal report can be made to the authorities with proof that your life is being threatened. And that can be acted on.

It’s very important to note that just because a loan shark can’t take legal action against you for not repaying your loan because they’re unlicensed, doesn’t mean that they won’t take drastic measures illegally. Remember, these individuals operate outside of the law. It would do you good to not purposefully antagonize a loan shark.

**PS:** Licensed lenders have the right to take legal action against you if you default on loan repayment, as it’s still a civil offense.

…

At Irorun, we understand that it can be tough to find an ethical lender that respects [your rights as a borrower](https://medium.com/@Theirorunapp/know-your-rights-as-a-borrower-a7bdbfda3f8), that’s why we constantly bring you actionable tips on how to get the best borrowing experience.

Feel free to send us a message at support@irorun.com to get started with your loan!

irorun-website-man-hands-up-happy.png

How to deal with loan sharks

In present-day Nigeria, multitudes are being thrown into a financial dilemma courtesy of the invisible hand of inflation touching every sphere of our economy. But there’s one thing that has helped cushion the effect of our declining economic situation — responsible loans, not reckless borrowing (Over here, we totally frown upon reckless borrowing).

Whether it be from traditional lenders or financial institutions (banks et al), loans will be around for a long time. Despite the benefits of loans, there are certain things or reasons you should never consider loans for.

Let’s take a look at seven things you should not borrow for:

## Luxury items
Borrowing money to splurge on luxury items, like expensive gadgets, designers, or extravagant vacations, is a very big no-no. We can agree that these items most likely offer short-lived satisfaction and contribute to long-term financial instability, especially for the trying-to-get Nigerian.

Relying on loanss for non-essential items strains your budget and may result in overwhelming debt. To avoid this, prioritize necessities over desires, set financial objectives, and save up for luxurious indulgences instead. By practicing financial discipline and avoiding reckless spending, you can clear the path to a more stable and comfortable financial future. Don’t impress the world to your detriment.

## Impulse purchases
Impromptu buying with borrowed money is a common mistake a lot of people make with serious consequences. Impulse buying makes it difficult to stick to a budget and make well-informed choices.

The individual not only accumulates debt rapidly but is also burdened with repayment obligations and financial stress. To save oneself from this, practice self-control. Stick to your list, Stick to your budget and remember; There’s always rice at home. All of the above will help you curb overspending, and maintain a fine line between essential and non-essential expenses.

As a rule of thumb, before borrowing for a purchase, assess if it aligns with your long-term financial goals and if it’s truly necessary or just a fleeting desire.

## High-risk investments
Investing borrowed money in high-risk ventures can expose you to significant financial losses. While investments always carry some risk, using borrowed funds amplifies the potential consequences. Speculative stocks or unregulated schemes can wipe out borrowed capital, leaving you with debt and depleted finances.

Instead, opt for more stable investment options that match your risk tolerance and financial objectives. Seek advice from financial experts to make informed investment decisions. We’re no investment experts but we’re certain one of the foremost rules in the investment rule book is to never invest money you cannot afford to lose. Can you afford to lose a loan?

## Gambling or betting
Using borrowed money for gambling or betting is a set-up for failure with a side dish of severe financial and personal consequences. The allure of quick cash can obscure the risk of significant losses, trapping you in a never-ending debt cycle.

Seek healthier and more stable ways to improve your finances. Consider seeking professional help if gambling has become problematic. Prioritize financial stability and emotional well-being over fleeting temptations.

## Day-to-day expenses
Daily expenses are just that, daily expenses, you can’t cut them out of your life. Your transportation costs, groceries, utility bills, and many other essentials make up your necessary expenses. Using borrowed funds to cover these expenses is likely to trap an individual in a constant cycle of debt. It also suggests a deeper financial issue that needs urgent attention. It’s safer to get your money up (improve income) to cover these daily expenses than rely on loans.

Borrowing should be reserved for more significant investments or emergencies, not for day-to-day survival. Practicing financial discipline and living within your means can help evade unnecessary debt and foster better finances.

## Paying off other debts
Using new loans to pay off existing debts might offer temporary relief but often worsens financial challenges in the long run. This practice makes it harder to manage other financial obligations.

Instead of paying debt with debt, consider debt consolidation options or negotiate with lenders to find a more manageable repayment term. Seek advice from financial experts who can guide you in developing a debt repayment strategy that aligns with your financial situation.

## Weddings and ceremonies
Weddings and ceremonies will last a day but the debt will last a lifetime. Well, not really but while celebrations are important, excessive spending on one-time events can hinder your financial goals.

The individual is better off with more budget-friendly options for weddings and ceremonies, focusing on the significance of the occasion rather than its extravagance. Planning and saving in advance helps prevent unnecessary debt and ensures greater financial security for your new chapter.

Remember, the success of marriage should not be tied to the scale of the celebration but to the love and commitment between partners. Wisdom nugget eh?

Now that we’ve told you several things you should not be taking out a loan for, we’re certain you’ve got your priorities in order and can now confidently apply for a loan with reasonable end-use.

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Let us help you secure that loan with ease, send us a message at [support@irorun.com](https://mailto:support@irorun.com) to get started.

7 things you should not borrow for in Nigeria

The shortcomings of traditional credit scoring methods are now painfully clear in the ever-changing world of financial services. Although traditional methods were once effective, they now fail to capture the full financial picture of borrowers, leaving many creditworthy individuals behind. The demand for alternate means to determine borrower eligibility has grown as we move toward a more connected and digital environment. Hurray technology! 

The foundation of traditional credit scores is past history from credit bureaus, with an emphasis on factors like prior credit utilization, payment history, and outstanding debts. Although this method has been the norm for many years, several shortcomings make it difficult to appropriately evaluate present-day borrowers. As an illustration, it might miss those with poor credit histories, recent immigrants, or people who choose to use cash instead of credit cards, leaving them with unmet needs and shut out of the lending ecosystem. Too limiting if you ask us.

Digital lenders seized the opportunity to rethink borrower assessments after spotting flaws in traditional credit scoring. We’ve enhanced loan eligibility with advanced technology and data analytics for a more comprehensive approach. They bridge the gap and provide financial opportunities to those overlooked by traditional institutions by redefining loan eligibility criteria. We did a thing, didn’t we?

## Factors considered by digital lenders beyond credit score
Now that you know we’ve expanded the playing field, we’ve curated 5 key factors beyond credit score you must know about before applying for a loan.

## Income stability and employment history
Digital lenders recognize a borrower’s steady income and employment history as signs of their ability to manage finances. A steady income indicates the borrower can likely repay the loan on time. An individual’s employment history also shows their job stability and growth, affecting their ability to repay debts.

## Cash flow analysis
Digital lenders take a more thorough approach by examining the borrower’s cash flow, compared to traditional lenders who mostly rely on credit scores. This involves reviewing earnings and expenditures over a set period, usually using bank statements and financial records. This helps digital lenders understand a borrower’s spending habits, financial health, and cash flow by examining inflows and outflows. This evaluation allows us to determine whether one can handle loan repayments in addition to other financial obligations. See why we require a bank statement?

## Purpose of the loan
An individual’s intended use for a loan is a significant aspect of the evaluation process. Risk and potential repayment vary depending on the purpose of the loan. For instance, a loan sought for urgent medical care may have different risk considerations than one meant for business expansion. To match loan terms with borrower needs and reduce default risk, digital lenders consider the loan’s purpose.

## Repayment history with the lender
The repayment history of borrowers who have a preferred digital lender carries a lot of weight. Reliability is shown through timely payments, boosting the borrower’s chances for future loans with better terms. This focus on past behaviour encourages a cooperative connection between the lender and the borrower. Long-term relationships are not built in one day. Start one with us today.

## Social and online presence
Our digital footprints are everywhere

Through a person’s online activities and interactions, people leave behind a significant digital footprint. Digital lenders sparingly implore this information in their review process. Lenders assess a borrower’s actions, reputation, and creditworthiness through their online and social media presence. Showcasing responsible financial practices and boosting creditworthiness can be achieved through a strong online presence. A lender who’s not scared to lose money to a ghost is likely to be a loan shark in disguise.

This shift from relying solely on credit scores enhances the accessibility and inclusivity of financial services. It enables lenders to serve a wider range of borrowers, including individuals with unstable financial circumstances or little credit history.

One loan after another we are providing chances to those previously underserved and considered not creditworthy by traditional banking institutions.

Send us a message at support@irorun.com and get started on your first loan today!

How digital lenders evaluate borrower eligibility


Have you always wondered why lenders ask for your BVN and what they do with it?

This article explains in detail why lenders need your BVN and how necessary it is to get a loan.

You’ll agree that any individual who owns a functioning bank account must be familiar with the acronym BVN, but let us further understand what it is.

BVN (Bank Verification Number) is a unique 11-digit number issued by the CBN (Central Bank of Nigeria) to individuals. It’s the same across all bank institutions for the same individual. This means that no matter how many accounts you open with different banks, your BVN remains unchanged.

## Is BVN necessary to get a loan?
The answer to this question varies with each source you find. Some might say “yes”, others might say “no”, and there may even be a few “it depends” but the most correct and logical answer would be “yes”.

## Here’s why:
Not all lenders indeed ask for BVN, as they all have different criteria but you should be worried if your lender doesn’t ask for your BVN. (Very worried).

Your BVN does more than allow you access to a bank account, it also serves as an identifier within the financial space. (Like a financial ID card).

Lenders use it to check your credit history and Karma (a privately sourced blacklist, so if one has a history of default with another lender, this is where there will be “a caught”.)

A lender who doesn’t ask for a BVN is skipping a lot of the credit check procedures, that’s why you should be careful. It’s almost like the lender isn’t afraid to lose their money, smells like trouble.

## For the lenders that do, why ask for BVN?
A means to verify identity: BVN serves as a universal ID in all banks in Nigeria (think of it like your NIN but for the financial industry), as such the information connected to your BVN remains unchanged across all banking institutions. This means it serves as the surest way that a lender can verify your identity.

To prevent identity theft: No two individuals have the same BVN, and as it serves as a means of identification, the chances of individuals using another person’s identity to get a loan drastically subside because of the checks involved.

To prevent fraud: The use of BVN as a check can also prevent fraud both on the side of the borrower (connected to identity theft) and lender (they might be loan sharks in disguise).

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At [Irorun](https://irorun.com/), we understand you might have doubts about giving out your BVN and that’s why we advise that you carry out the proper checks on your prospective lender to ensure they’re legitimate and not a scam. [Here’s how to carry out these checks on lenders.](https://medium.com/@Theirorunapp/how-to-spot-a-responsible-online-lender-b1888f06011c) Be rest assured as well that Irorun doesn’t illegally store your sensitive financial data or share with third parties.

If you have any more questions please send us a message at support@irorun.com!

Why do lenders need BVN: is it necessary to get a loan?

When it comes to personal finance, two unsung heroes take the stage: direct debit and debit cards. While often overshadowed by newer technologies, these two remain the pillars of our everyday financial transactions.

In this article, we’ll dissect the features and distinctions of both, and also help you navigate the right fit for all your transactions.

Let’s jump right in 

## Direct debit
This payment method allows an account holder to give permission to a third-party to withdraw money from their bank account. It’s convenient and ensures payments are on time. This payment method lets an account holder authorize a third-party to take money from their bank account. It is convenient and ensures timely payments. The account holder can schedule automatic withdrawals for specific amounts on certain days, like a Netflix or Dstv subscription. 

## Debit card
A debit card allows customers to buy things or get cash from ATMs by taking money directly from their bank accounts. It also allows customers to make purchases or withdraw cash from ATMs using money from their bank accounts. Debit cards do not involve borrowing money like credit cards. Instead, they use the account holder’s own funds for transactions. When you use a debit card for a purchase, the same amount is taken from your linked bank account. You can also use debit cards in stores or online, and they often display logos from card networks such as Verve, Visa, or Mastercard.

Featured read: Do you want your loan approved? Try these 5 hacks!***

## Similarities
Direct debit and debit cards share common features that revolve around electronic payment, the linkage to a bank account, and the process of payment authorization.

## Electronic payment
Both direct debit and debit cards enable electronic payments, facilitating transactions without the need for physical currency.

## Linked to a bank account
A fundamental similarity is their association with a bank account. Debit cards are directly linked to your bank account, providing instant access to funds whenever you make a purchase or withdrawal. Similarly, direct debit involves a connection to your bank account, allowing authorized parties to withdraw funds for recurring payments.

## Payment Authorization
In both cases, payment authorization is necessary. With a debit card, you authorize transactions by providing your PIN or a signature. In direct debit, initial authorization is granted to specific entities to deduct funds from your account on agreed-upon dates.

## Differences
Some of the key differences between both methods are classified under purpose, payment initiation, security and dispute.

## Purpose
- Direct debit: is primarily intended for automated recurring payments, like utility bills and subscriptions, ensuring timely settlements without constant manual involvement.
- Debit card: is designed for versatile financial transactions including purchases, ATM withdrawals, and online payments, allowing instant use of available funds. Think “ATM cards”.

## Payment initiation and transfer processing
- Direct debit: Payments are initiated by the payee, who obtains your authorization beforehand. Funds are requested from your account and debited on agreed-upon dates.
- Debit card: You trigger payments by presenting the card at point-of-sale terminals or ATMs. Funds are instantly transferred from your account to the recipient during the transaction.

## Payment security
- Direct debit: Requires initial authorization, lowering the risk of unauthorized transactions. Although, automated processing can potentially be a security concern if not properly monitored.
- Debit card: Your participation is needed for every transaction, either through a PIN or a signature. Ergo, cardholders have more control over transaction validation.

## Transaction dispute
- Direct debit: Disputes may arise from unauthorized transactions or errors in payment amounts, involving coordination between your bank and the payee to resolve.
- Debit card: Transaction disputes are relatively straightforward. If you spot an unauthorized or incorrect transaction, notifying your bank triggers an investigation that can lead to a reversal.

## Pros and cons of direct debit
Before you choose this method of payment, let’s learn about some of its benefits and drawbacks:

## Pros
**Convenience**: Direct debit offers convenience by automating regular bill payments, eliminating the need for you to remember due dates.

**Timely payments**: It ensures timely payments, reducing the risk of late fees and penalties.

**Financial discipline**: Direct debit encourages financial discipline by ensuring essential bills are paid consistently.

**Reduced administrative burden**: With automated payments, you spend less time managing bills and can focus on other aspects of your finances.

## Cons
**Lack of control**: Automated payments might lead to overlooking bill amounts or changes in service fees, potentially resulting in unexpected withdrawals.

**Insufficient funds**: If a direct debit is processed and your account doesn’t have enough funds, you incur overdraft fees or face declined payments.

**Cancellation challenges**: Cancelling or modifying direct debit arrangements might involve contacting both the payee and your bank.

**Potential errors**: Mistakes in payment amounts or incorrect deductions could occur, requiring time and effort to rectify.

Featured read: How small loans help overcome financial emergencies in present-day Nigeria***

## Pros and cons of debit card
Consider the advantages and disadvantages of using debit cards for financial transactions before using them:

## Pros
**Immediate access to funds**: Debit cards offer quick and convenient access to the money available in your bank account for purchases or withdrawals.

**No debt accumulation**: Transactions with debit cards use your own money, eliminating the risk of accumulating debt as with credit cards.

**Budget management**: Debit cards help you manage your budget by preventing overspending, as they use your existing funds.

**Widely accepted**: A vast majority of merchants and ATMs accept debit cards, making them versatile and accessible.

## Cons
**Limited fraud protection**: Debit cards may offer limited fraud protection compared to credit cards, and unauthorized transactions could tie up your funds during the investigation.

**Potential overdrafts**: Spending more than your available balance may result in overdraft fees, which can be costly.

**No credit building**: Debit card usage does not contribute to building a credit history or improving your credit score, unlike responsible credit card usage.

## Choosing the right payment method
What are some key points you should consider before choosing between both payment methods?

We’ve noted them for you below:

## Frequency and type of payment
Determine how often you make payments and the nature of these transactions. For regular bills like rent, utilities, loan repayments or subscriptions, direct debit can simplify your life by automating payments. Debit cards suit daily expenses like groceries perfectly.

## Budgeting and spending habit
Examine your spending habits and budgeting style. Debit cards act as a guardrail, allowing you to spend only what you have. This can curb impulse spending and help you stick to your budget.

## Security preference
Evaluate your security priorities. Debit cards offer security through immediate fund deduction and require a PIN for transactions. This reduces credit risk and enhances control. Credit cards typically have robust fraud protection, and zero-liability policies shield you from unauthorized charges.

## Best for the situation
Analyze the context of your payment. Debit cards are widely accepted and handy for day-to-day spending. Having stable finances and a preference for automated payments to avoid late fees or missed payments makes direct debit the most convenient option.

You stuck with us until the very end and so we’re sure you’ve learnt a thing or two.

As always, send us a message at support@irorun.com and let’s get you started on your first loan with your most preferred payment method.

Common features and differences of direct debit and debit cards


“Imagine losing money this period?”

Terrible thought right?

That’s why Irorun curated 4 financial scams you should watch out for. Because how can you avoid what you don’t know about?

## Phishing scams
Perpetrators of these scams usually send an email or text message with a link that can be used to access sensitive and private information such as passwords, security details etc. Which could spell a disaster for you. These emails are usually tailored to look like they come from an authentic source. Werey dey disguise.

They often tell a story to trick one into clicking on a link or opening an attachment. It could come as an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company.

The message could be from a scammer, who might say they’ve noticed some suspicious activity or log-in attempts), claim there’s a problem with your account or your payment information, or say you need to confirm some personal or financial information.

To avoid falling victim, you should watch out for links in unexpected emails or texts from unknown sources.

## Impersonation scams
Impersonation scams happen when an impersonator copies elements of a person, brand or organization for fraudulent purposes. These persons pretend to be someone else in a bid to deceive the unaware party. Another werey dey disguise.

These scams go beyond someone calling and asking for your bank details. Some of these scammers go as far as creating fake social media accounts or fake websites that copy the names, images, logos, or other identifying information of a person, brand or organization for deceitful purposes.

This is why it’s advisable to only access an organization’s website through a Web browser and not any link sent from a suspicious email address, look out for verified ticks on social media handles of public figures, brands etc. Remember it’s highly unlikely for government parastatals, brands or public figures to send you a personal message regarding your finances.

## Charity organization scam
This is another popular financial scam that you should watch out for. Charity fraud schemes seek donations for organizations that do little or no work — instead, the money goes to the scammer’s pocket. While these scams can happen at any time, they are especially prevalent after high-profile disasters or pandemics *coughs in COVID-19 relief fund*. Scammers often use tragedies to exploit individuals who want to help or seek help.

Scammers know how readily we open our hearts and wallets to those who served and those rebuilding their lives after tragedies and so they abuse this kindness. They’re especially active during the holidays, the biggest giving season of the year.

And that is why proper investigations should be carried out before giving out hard-earned money to any organization seeking funds.

## Lottery and job offer scam
This particular financial scam has to be the oldest in the book. Who doesn’t dream of winning a lot of money or a big prize? That’s why scammers still use the promise of a prize to steal money or personal information from unsuspecting individuals.

Scammers also present themselves as individuals or businesses posing to offer well-paying jobs or fast-money schemes. Whatever forms it comes as is usually just an attempt to access your sensitive details.

Unexpected prize and lottery scams work by asking you to pay some sort of fee to claim your prize or winnings from a competition or lottery you never entered. Smells like 419!

We understand that times are indeed hard and a new well-paying job may be what you desire, but we ask that you carry out proper research on any company that reaches out to you with claims of a job offer.

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As always, Irorun wants you well-informed on matters that concern your money.

For more questions or loan assistance send us a message at support@irorun.com!

4 Financial scams to watch out for


Have you ever found yourself with money that you didn’t need anymore? I doubt it. We all need money.

How about a loan you didn’t need urgently anymore?

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Now, Imagine a scenario like this:

A health emergency comes up and the bills are due soon. You decide that the best thing to do at that moment is to apply for a small loan, that’ll help clear up the hospital bills.

You find a responsible lender, apply for a loan and days later your loan is approved and sent to you…

But moments after, you receive a message from a family member telling you that they’ll pay the bill.

That’s great but now you’re stuck with a loan that you no longer need, what do you do?

In this case, there are only two things that can be done, and this article will show you.

You can decide to:

## Return the money
From the moment you sign the loan document, a binding contract exists between you and the lender. And every contract has terms attached to them including terms of dissolution.

This means that to return the loan amount without repercussions, you must read the fine print of the loan terms and ensure your lender is good with the new situation. Don’t transfer the money to your lender without proper documentation and agreement on both sides!

Your lender has most likely gone through a lot of effort to get your loan to you and as such, they want to be paid for their time, this is where the origination fee comes in. It’s taken from your total loan amount (i.e. if you borrow #20,000 and the origination fee is #2,500, you will be given #17,500, but you’re to pay the full loan amount of #20,000). Again, read the loan terms and make informed decisions.

There’s also a possibility of a prepayment penalty (if specified in your loan terms) which usually takes the form of a percentage of the loan balance or the interest rate that will be missed out by the lender. (This prepayment fee varies from lender to lender). [Read more on other loan fees including prepayment fees.](https://creditnigeria.com/types-of-loan-fees)

## Spend the money
Knowing that you may have to put in additional money on your loan if you prepay(i.e pay before your repayment date) might convince you to spend the money on something else. This isn’t a bad idea as long as you’re willing to meet up with your repayment date.

If you have taken out an unsecured loan, your lender is not concerned about the end goal of the loan amount, so you have free rein over how you choose to spend the loan. They’re only concerned when you fail to meet up with your repayment date. In cases where one fails to pay back their lender and tries to outsmart them, they’ll be reported to the credit bureau and their credit score will take a hit. [Here are some of the consequences of loan default.](https://medium.com/@Theirorunapp/consequences-of-ignoring-your-loan-obligation-e2ffb939c601)

With a secured loan, your valuables that were placed as collateral will be at stake if you default on your loan. Any attempt to skip out on a loan puts you and your guarantor (if for any reason you needed one to qualify for the loan) in trouble which will affect both your credit history negatively.

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As always we want you well-informed before any key financial decision is made. Remember, whatever you decide has to be in line with the loan terms you had with your lender.

If you have any questions please send us a message at support@irorun.com!

What happens when you take out a loan but don’t use it?


Slowly but surely the myths about loans are fading off and more people are opening up their minds to it.

And that’s why with every article, [Irorun](https://irorun.com/) brings you closer to the facts of finances. Today is not any different, we’ve curated 5 types of loans that are common in Nigeria.

Now, you can pick a loan option that’s best suited to you. Happy reading!

## Secured loan
This type of loan requires collateral as a condition for borrowing. A lender can request collateral for large loans for which the money is being used to purchase a specific asset or in cases where your credit scores aren’t sufficient to qualify for an unsecured loan. [Check out how you can boost your credit score.](https://medium.com/@Theirorunapp/how-to-boost-your-credit-score-e723bd2ce497)

The collateral for the loan could be your property or an asset with a value equal to or higher than the loan amount.

The interest rates of secured loans tend to be lower than that of unsecured loans due to the use of collateral. Fees and loan terms can vary for secured loans, depending on the lender, though they do tend to have long repayment periods.

## Buy now, Pay later loans
BNPL is just as the name implies. This short-term loan allows you to buy the desired item the moment you spot it, without the nagging feeling of “low funds”. The BNPL loan greatly depends on the terms of the lender and how they operate. Some lenders may accept monthly installment payments over an agreed period or a one-off whole payment at a specific date.

A very popular BNPL loan scheme is the loan option attached to gadgets(case in point: iPhone). Apple offers an option where you can own a device(after thorough background checks) and pay back monthly installments until the loan amount(equivalent to the value of the device) is completed. BNPL loans such as this eliminate “buyer’s guilt or hesitation” and allows you to buy am as e dey hot while still maintaining a good standard of living.

## Unsecured loans
Unlike the secured loan, this type of loan does not require collateral and is usually given to borrowers based on their credit score and financial history. It’s mostly known as a personal loan.

Although there is little to no security, unsecured loans are common since they are easy to pay. They also have a short repayment time as opposed to secured loans.

## Salary advance loans
This type of loan is usually given to an employee. It’s a part of the wages of an employee paid at the end of the month. Only an individual with a salary paying job is eligible for this loan.

This loan is usually short-term, and also comes with interest rates, though subsidized. The repayment terms are as such; you can make payments once at the end of every month, or once every three months. It’s important to understand that employers rarely give salary advances unless otherwise stated. This means that salary advance loan is usually only available when stipulated in your employment contract. No be every office dey do am.

However, if an employer gives a salary advance to one employee, he/she must extend the opportunity to other employees. Discrimination based on performance, race, age, or gender is highly discouraged.

## Asset finance loan
Asset finance is the practice of using a company’s balance sheet assets (such as investments or inventory) as a security to borrow money or take out a loan against what you already own. It can provide a secure and easy way of getting working capital for your business.

Various things can be offered as collateral, from inventory, machinery and even buildings. For example, a vehicle manufacturing company may use its vehicles as an asset to secure finance. The amount loaned will usually depend on the value of these assets which the finance is secured against.

It’s often used as a short-term funding solution (to pay employees, suppliers or to finance growth in a company) and provides a more flexible way of borrowing compared to traditional bank loans. For growing businesses and start-ups especially, it provides an easy way to increase working capital.

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Irorun and bringing you top-tier financial knowledge.

Tell two friends about us and send us a message at support@irorun.com for further assistance or questions!

5 types of loans common in Nigeria

It’s no revelation that Nigeria’s future hinges on the ability to empower her youth to become self-sufficient business owners. While Nigeria may not have empowered them all, every 99 in 100 persons in the country today is either a small business owner or friends with a small business owner (Source: we can’t lie to you).

Despite the current free-fall of the economy, youths are creating innovative ways in which they can sustain themselves. As we all know, regardless of who starts a business, there is a great need for finances AKA capital. Unfortunately, not many can get their hands on sufficient capital to fund their business.

But here’s how small loans have been of help in creating windows of opportunities for not just potential business owners but existing business owners as well.

## Job creation
Young entrepreneurs who take loans to create businesses also create job opportunities for the persons they employ. By launching their businesses, these young entrepreneurs create a source of income for themselves and also open doors for others in the job market. Each new position they fill means another person with a job and a means to support themselves and their families. Creating what we tag a “You chop, I chop movement”.

It’s also notable to remember that with business owners, there’s always room for expansion which implies more job opportunities for the taking.

## Access to capital
Young, vibrant and energetic people tend to have a special ability to create business ideas that have the potential to grow into a million dollar idea, but the problem always stems from the funds to start. You need money to chase money or how do the kids say it?

And since access to these funds is unavailable, dreams tend to die an unnatural death…Well, not when there’s access to small loans, something the Western world has successfully hacked.

## Ease of small loans
Obtaining a small loan in Nigeria has become as simple as ordering a meal online, don’t believe us? Try Irorun and see for yourself. The ease of application and quick disbursement of small loans empower the youth to act on their business ideas as quickly as possible. Taking too long they say, often waters down ideas and dreams.

Unlike large government loans, which are not likely to be approved, small loans offer quick approvals with loan amounts that meet the immediate needs of the borrower.

## Access to global markets
The world has become more interconnected than ever before. Young Nigerian entrepreneurs are now seizing the opportunity to broaden their reach. Small loans have empowered them to easily access global markets. Whether it’s selling traditional crafts, providing digital services, or venturing into e-commerce, these loans offer the support needed to compete on a global level. We global now guys! 

. . .

The myths about loans are all turning out to be empty, unverified buzzwords. Your ideas will remain just ideas without finances. Let us help you get through the first hurdle of being a business owner. Send us a message at support@irorun.com and let’s get you the capital you need to build the next big thing!

The impact of small loans on youth entrepreneurship

Most lenders take pride in how ‘fair’ they are in their dealings, putting the needs of their clients first and offering them the ‘best’ loan experience.

They often forget that what happens after the loan has been completely paid off also adds to the loan experience.

The final payment of a borrower is like the close of a sales deal. Each person goes away happy (or at least mildly satisfied) with what they got. So why then do some lenders continue to call and send messages to customers, who are no longer interested in their services, about incomplete payments or ‘exclusive’ loan offers.

Well, we can’t exactly tell you their reasons when we don’t know why ourselves. But, what we can do is provide you with tips on how to get these red flag-ridden lenders off your back!

Tip 1 (just kidding but not really): never collect loans from sketchy lenders, there are more reputable lenders like Irorun ready to provide for you.

Now onto the tips proper!

## Review your loan agreement
Let’s be honest with ourselves for a minute, no one reads the terms and conditions except when they really have to. Therefore, this situation is a great time to put on your reading glasses.

There might be a clause in your loan agreement about post-payment communication, specifying when the lender can contact you after you’ve paid off your loan. This clause will also clarify your rights as related to the loan you have borrowed.

## Contact the lender, professionally
You can professionally reach out to your lender. We’re not asking you to start a fight, but politely inquire about the reason for the continuous contact. It could be a payment processing issue or an administrative error.

As mentioned in the previous tip, a clause in your loan terms can state situations where your lender can contact you. An administrative or payment error definitely counts. Again read the fine print.

## Document all communications
To handle these persistent lenders, you have to bring out the tactics that would save you in an escalated situation. Record every interaction with your lender; call logs, emails, SMS etcetera.

These situations rarely escalate and in the slim chance that they do, it’s beneficial to have evidence of the lender’s actions and all your interactions with them.

## File a complaint with the regulators
At this point, we’ve all heard of the credit bureau, the one place no borrower wants to be marked down as a defaulter but It may please you to know that lenders have regulators as well. See how to report unethical lenders.

The regulators are there to ensure that lenders behave within the ambits of the laws. So whenever a lender starts acting suspiciously and you have concrete evidence, report them to their regulator. Don’t say we haven’t done anything for you. 

## Check credit report
Your credit report is an important document that you should check periodically and most importantly whenever you repay a loan.

If the lender does not update your repayment status, they could use this to obtain additional funds from you. So periodically check your credit report to ensure your status has been updated to ‘paid’ or ‘closed’. An incorrect report can impact your credit score negatively.

As always, send us a message at support@irorun.com and let’s pair you with a loan with a responsible and ethical lender.

How to deal with persistent “lender” contact after repayment


Are you currently considering getting a loan but don’t know how to get on with it?

Then you should read further…

This article shows you 4 reasons why you should consider getting a loan from a digital lending platform:

## Fast processing
There was a time when taking a loan was attributed to being rich because only the wealthy could walk into a bank, drop collateral, go through the plenty-plenty application process and come back home with a loan.

Many individuals found it frustrating and unfair and so wrote off getting a loan legitimately…

But the world has since changed with tons of digital lenders at your beck and call. Loan application and approval time today can be measured in minutes all thanks to the ease of these platforms.

You can now escape the hassle of waiting long periods to get your loan approved and within a few hours your loan amount is sent to you. This quick processing period has proven to be a lifesaver in times of emergencies for many individuals.

## Easy-to-understand documentations
The process of getting online instant loans requires some documents and financial details to be made available (as appropriate), and these documents are put forth in a way that makes it easy for individuals to understand with ease.

Legitimate lending platforms have made loan terminologies and concepts easy to understand, and this has reduced the “fear and uncertainty” surrounding the lending industry. These apps tend to be simple and require less documentation and details. Check out Irorun for example!

An instance where one applies for a loan and is asked to provide their bank verification number (BVN) will be less of a hassle than being asked to provide financial records of their thriving business. ⚠Ps: Remember to do your research before giving out your financial details to any lender!

## Better alternative than unregistered lenders
turn to unregistered lenders (loan sharks) when we can’t get approval from traditional banks, but with the help of digital lending platforms, one can avoid a lifetime of grief and harassment from these wolves masquerading as lenders.

Digital lending platforms have strict checks and authorization processes that separate them from unauthorized lenders, this reduces one’s chances of falling prey to bad lenders. Here’s how you can spot authorized and responsible lenders.

## Builds credit score
Another major reason why you should consider digital lending platforms is the major role it plays in boosting your credit score.

These platforms usually provide microloans AKA small loans that are easy to repay within the agreed repayment schedule. This is a plus for you as it’s an effective means to build your credit score. Check out other ways to can build your credit score.

Your original goal may not have been to borrow from an online loan app but why not make the most of it? If your credit score was deemed too low to get the amount of money you wanted originally or you’re yet to have a credit score attached to your credit profile, a digital lending platform is the best place for you to start building your credit score.

With a higher credit score, your chances of securing a larger loan increases and so does your credit profile. In 2023, every adult needs an outstanding credit profile.

Wondering where to go from here? Then send us a message at support@irorun.com and we’ll get you started!

4 reasons to consider loans from digital lenders in 2023

Howdy there Rockstar!

We understand that sometimes you feel you can’t afford to wait, but if it affects your safety, it’s worth waiting for. Whenever you want to provide a digital lender your personal information, we advise that you take a minute to breath, shake off that anxiety and keep these few things in mind.


## Secure connection
A secure connection is very important when doing any kind of online transaction as it prevents your accounts from being hacked and causing you to lose sensitive personal data.

Your browser plays its own role in defense as modern browsers are designed to detect and block access to unsecured websites. However, you should still take extra care to make sure you are safe. Here’s how to spot a secured website; look for a padlock symbol in the browser’s address bar and “https” in the URL. These red flags serve as a website’s mark of legitimacy, letting you know that the website you’re visiting is trustworthy and not a scam put up by online thieves.

When working with digital lenders, you may start protecting your personal information by being aware of these visual clues and insisting on a secure connection. It pays to take precautions to safeguard your sensitive information and online financial transactions in this day and age.

## Reputable lenders
It’s essential to make a conscious effort to only do business with well-known, trustworthy lenders when providing personal information to digital lenders. Considering these reputable lenders have been around for a while, it’s more likely that they have strong security measures in place to protect your private information.

It’s important to keep in mind that these lenders are usually subject to financial authority monitoring and have an interest in protecting the information of their clients. This adds another layer of security and accountability to your transactions. Selecting reputable lenders gives you the security of a reliable and accountable financial partner throughout your digital lending experience, in addition to improving your own data safety. Read more on how to spot responsible lenders.

## Strong passwords
When sharing personal information with digital lenders, it’s important to create accounts on loan websites with safe and unique passwords. Passwords should be made up of letters, numbers, and special characters (symbols) to make them hard to guess. It’s also a good idea to change your passwords regularly to reduce the risk of illegal access to your account.

Enabling two-factor authentication adds an extra level of security by requiring not only a password but also a temporary code or biometric verification before granting access to your account, making it much more difficult for potential cyber threats to compromise your sensitive financial data. _Make it tough for these bad guys_.

###Verify legitimacy
Before sharing personal info, verify the legitimacy of the website and lender. Check for customer reviews on the App store or Play store, official contact information, and physical addresses.

Take the time to thoroughly examine the loan’s terms and conditions. Consider the interest rate, repayment timeline, and any hidden fees. Knowing the fine print will allow you to make an informed decision while also protecting yourself from surprises.

Also, think about setting up a different email address and bank account for your online loan activities. This not only gives an additional layer of protection, but also simplifies your financial management by keeping your digital lender interactions separate from your personal finances.

## Beware of unsolicited offers
_Constant vigilance!_

It’s highly important to be vigilant while dealing with digital lenders in order to protect your personal information. Unsolicited loan offers that come through as an SMS or any other form of communication can be a warning sign.

Therefore, it’s advisable to take proactive control of your financial decisions by initiating loan applications through established and trusted websites. By doing this, you lower your chances of becoming victim of a scam and keep your sensitive information out of the wrong hands.

## Permission-based sharing
Sharing your personal information with people who truly need it is important when working with digital lenders. This involves sharing information such as your name, contact information, and financial background (BVN, bank statements and the likes) while remaining cautious not to give out too much.

Remember that sharing more information than necessary can put you in danger of identity theft or fraud. So, before you offer any information, consider and confirm whether it’s directly relevant to the lending process and if it’s absolutely necessary to share. _Keep your eyes peeled out for any foul-play_

Check out Irorun to see how secure our website is and send us a message at support@irorun.com to get paired with a loan that’s the right fit for you.

What to keep in mind when providing personal information to a digital lender


First times can be scary and uncertain…

Irorun disagrees that your first loan should be any of that.

So we’ve curated 5 essential facts Irorun first-time users should know:

## Loan range
“To each their own”

The above is true for loan apps as well. Every loan app caters to a unique problem. For example, Irorun as a microloan app offers small loans that act as a quick fix for emergencies.

Irorun’s loan amount falls at a minimum of ₦5,000 and a maximum of ₦50,000. This is also a perfect opportunity for one to build their credit score.

Recall, that for you to qualify for a large loan, a good credit score is needed. And that’s where Irorun comes in. With our easy-to-access small loans — you can build a credible credit score and profile.

## Loan approval requires a valid government-issued ID card
To get your loan approved on Irorun, you need a current and valid government-issued ID card. This serves as a means to verify your identity. Therefore, expired ID cards or means of Identification different from those specified by Irorun will not be accepted.

You should also know that you’re only asked to provide a valid ID card once and then your Irorun account is created to serve you for life. This is why we advise you not to delete your account after one loan transaction.

## Loan eligibility
As a new Irorun user, you are only eligible for a loan amount of ₦5000 for the first time.

Not to worry, Irorun has put in place a system that helps to build mutual trust between lender and borrower. This system gives you a chance to work your way up on the Irorun trust bar while also giving you what you need.

The more you borrow and complete payments at the due date, the higher your chances of being eligible for higher loan amounts. We’re cool right?

This system enables us to build a trustworthy relationship with you while also building your credit profile and score.

## Phone call verification
We know you may not be thrilled by this but Irorun needs to speak with you, as a part of our verification process, before your first loan may be approved.

When you apply for a loan with Irorun, you will be sent a verification email with a number you’re required to call. Ignoring this final stage can cost you your loan approval.

The phone call verification is an important process that Irorun has put in place for your protection. For cases, where a scammer steals an individual’s data and identity to process a loan, phone call verification helps expose such treachery.

Once you’ve completed your phone call verification, a final approval or rejection email will be sent to you.

## Data privacy
This is a major part of Irorun’s ethics that we strive to uphold as giving out the data of clients without express permission is a detestable act punishable by law and Irorun would never do such.

As Irorun’s loyal clients, one of our goals is to protect your information from those who wish to do you harm and as such Irorun would never undermine you by abusing your private information.

…

For further assistance and questions regarding your first loan application, send us a message at support@irorun.com!

5 facts Irorun first-time users should know

One of the most common mistakes borrowers make when applying for a loan is uploading the wrong identity documents, unintentionally or intentionally.

Your ID is more than a formality; it’s an important part of your financial profile. Ensuring that your ID documents are exact and up to date in your loan applications can help you prevent trouble that may arise in your loan approval process.

Before we get to the implications of incorrect ID uploads, we’d like to share a few helpful ID-upload tips for all our Irorun Rockstars (new and prospective).

## Mandatory document upload
When you’re considering getting a loan from Irorun, one important thing to know is that we need you to give us an official, accepted and up-to-date means of identification, like your national ID, driver’s license, or passport.

There’s no bargaining or talking your way out of it. It’s like having to show your ID to open a bank account; we need to know you are who you claim to be. Your ID is like your ticket to the loan, and you’ve got to have it ready when you apply. No negotiations allowed.

## Accepted forms of IDs
Before diving into lending with us at Irorun, you should know what you can use to prove your identity when applying for a loan. We know that different organizations have various means of identification that they accept, and the same applies to us, too.

We acknowledge these as the only acceptable means of identification: National Identity Card (NIN), Voter’s card, Driver’s license, NIN slip, and International passport. Any other form of identification will be deemed invalid and rejected during the loan application process.

## Commonly mis-uploaded IDs
Despite the clear guidelines provided to our dear customers, some persons ‘unintentionally’ upload IDs that we don’t accept at Irorun. While work IDs and National Youth Service Corps IDs serve as a valid means of identification to other organizations, they are not valid at Irorun.

Submission of these documents will not be accepted, and loan applications will promptly be rejected.

## Implication of incorrect ID uploads
Uploading the wrong identification documents can lead to various complications and cause delays in your loan processing. Some of these include:

## Verification challenges
The verification procedure may be affected if the information on your identification documents is wrong. This might cause annoying delays in getting your loan approved, increasing the stress for you and the lender.

## Risk of loan denial
Your loan application may be declined when you provide an ID that the digital lender doesn’t acknowledge. This means you may not receive the necessary financial assistance you seek and may also incur additional financial issues.

## Document rejection
Identification documents with inaccuracies are more likely to be rejected. This denial means you’ll have to resubmit the right ID, which can prolong the loan application process. So a quick once-over of your personal information before submission is important when transacting with digital lenders. Afterall, these these lenders receive a high influx of other applicants daily.

It doesn’t take a lot to carefully verify and ensure that you are uploading one of our accepted forms of ID. This prevents unnecessary time wastage while also shortening the loan application review process. Win-win for all of us involved!

As a security measure, remember to stay vigilant when exchanging personal information with digital lenders. Read more on what to keep in mind when providing personal information to a digital lender****.

Shoot us a quick message at support@irorun.com and let’s get you started on that loan application!

The costly error of uploading incorrect IDs on your loan application


Hi there! Irorun here again. Today, we’re answering the age-long question of our valued user — YOU.

In this article, we provide clear answers to the question — ‘What does it mean when my loan is pending?”

Sadly, the misconception some Irorun users have is that; their loan application is denied because their documents are pending. They see that even when all stages of their verification/application are complete (or sometimes not), their Irorun dashboard still reads as “pending”. Therefore they conclude their loan application has been rejected.

But, here’s the thing; a pending loan application doesn’t translate to rejection. There are a couple of reasons why your loan is still pending…

## Final verification check
Until this final verification check is done. Your Irorun dashboard will read as “pending”

To keep your data safe and prevent identity theft, the Irorun loan application process has checks in place that must be completed before your loan can be approved and the “Phone call verification” check is one of them.

After you apply for a loan, you’re instantly sent an email with a number you’re required to call and speak with an Irorun representative as a means of further verification. Once you complete this process, the Irorun system carries out additional checks before approving or denying your application.

During this period, your app dashboard shows “pending”. This doesn’t mean your loan has been rejected but rather your documents and identity are being vetted.

Although, if for any reason you fail to carry out the phone call verification, your dashboard will continue to show “pending” with no change forthcoming.

After some time, Irorun will contact you via email to inform you that the phone call verification has not been carried out and inquire as to whether you would like to cancel or continue the loan application.

## Incomplete loan application/Irorun vetting process
Another likely reason why your Irorun dashboard still reads “pending” may be because of an incomplete or incorrect application. Not completing your application process or putting in invalid personal details may put the whole process at a standstill.

It could also be that Irorun is vetting your documents and checking your credit profile. So we can be in the safe zone as well. Remember, any lender that’s not afraid to lose their money is a walking red flag .

Know that it’s never Irorun’s intention to cause our loyal users any form of distress and that’s why our loan application is seamless and fast.

## Bonus point
Here’s one final misconception to fact-check — a pending loan status does not mean that your loan repayment date has started counting!

Let us put your mind at ease now, your loan only begins to count after it’s been approved and your loan disbursed.

…

As always, we’re available to answer your questions — whether it’s to confirm facts or simply make inquiries you can always reach out to us at support@irorun.com!

What does it mean when your loan is pending?

# Contrary to many individuals’ beliefs, one’s credit score does not decrease if one stops borrowing. In some cases, it’s quite the opposite. Holding off on taking new loans can have positive or sometimes neutral effects on one’s credit score.

A poor understanding of credit scores is usually what leads to this misconception. To help dispel such misconceptions, here are a few factors that actually play a role in lowering one’s credit score.

## Late payment
We’ve mentioned too many times the negative impact of late loan repayment on an individual’s credit score.

To merit an increase in credit score, a timely repayment of all bills and loans is required. Also, a delay in debt repayment causes a reduction in credit score. In cases where one is unable to meet up with an agreed-upon repayment date, it’s important to inform the lender early enough, to restructure a more flexible T&C.

## Debt level
An individual with more unpaid debts, has a higher debt-to-income ratio. If such individuals are shopping for loan, they’re seen as not creditworthy enough to sufficiently cater to their loan. Therefore, we can say that a high DTI level reduces ones credit score and also their chance of securing a loan. Find out more about the impact of DTI on your loan application.

## Applying for multiple loans
There’s a common saying; “If you’re everywhere, you’re nowhere”. This holds for borrowing as well.

If you’re actively seeking credit from various sources in a short span, it might signal financial distress or overextension. This can raise concerns among lenders about your ability to manage additional debt, hence affecting your credit score negatively. Although, the impact of these inquiries is typically minor and does diminish over time.

## Errors on credit report
Inconsistent and inaccurate information in an individual’s credit report can potentially reduce their credit score. It’s of utmost importance that all documents containing an individual’s financial details should reflect similar and accurate information. Lenders may view discrepancies in any of these documents as fraudulent, which can lead to a decrease in credit score.

## Serial loan default
We consider loan default as the ultimate destroyer of credit scores. Worse yet, a borrower who always defaults on their loan will significantly decrease their credit score.

Defaulting on loans severally, shows an inability of an individual to fulfil their financial obligations and thus leads to a negative impact on their credit score.

Now that we’ve answered your question, let us help you confidently secure a loan that’s the right fit for you. Send us a message now at [support@irorun.com](link)!

Will my credit score get lower if I don’t borrow anymore?

In the lending industry, there are concerns about legal and ethical boundaries regarding loans. These concerns arise when borrowers are don’t make timely payments of their loan.

In Nigeria today, numerous lenders have maligned individuals who defaulted on personal loans, going beyond the usual reports to the credit bureau.***

Lenders should not engage in such unethical actions, but when they do, they often escape accountability because borrowers are unaware of their rights, including their repayment terms.

Today, we address the issue of lenders slandering loan defaulters, focusing on what borrowers themselves can do in such situations.

## Document the slander
A lender with malicious intentions is likely to start throwing threats around in hopes of damaging your reputation. They may go as far as carrying out these threats; sending derogatory messages to your phone contacts, unsavory posts about you on social media platforms. etc

If you ever find yourself in such a dilemma, here’s what you should do: meticulously record all derogatory messages (or images) sent to you or posted online by any means. This includes details like loan amounts, credit scores, and credit reports if relevant. Capture them as a screenshot or screen record, but make sure to have it stored. This will serve as your evidence in case the situation escalates further.

## Review the loan agreement
Revisit the loan terms and agreement, and read it thoroughly. Carefully examine the fine print for any hidden details that might allow the lender to commit slander.

Check for any clause related to communication and dispute resolution, this can help create a strategy on how you can approach the lender with complaints about their ill-treatment.

## Contact the lender
Now that you’ve read the fine print, you are armed with everything you need to confront the lender and control the situation. Note that control does not equal aggressiveness. Going at your lender aggressively would only mean they’d reciprocate with the same energy.

Address the issue calmly. Seek clarification on their reasoning for posting derogatory content or the agreement terms allowing such actions. Request for the removal of all derogatory content and rebuttal of all slanderous statements.

## File a complaint
Working things out with the lender does not make the issue settled, contrary to popular belief. Regardless of a resolved issue, we strongly advise that you report the lender to the proper regulatory bodies (credit bureaus, FCCPC***) overseeing financial institutions especially if the lender’s actions go against industry standards as they may continue to carry out the acts with other unsuspecting borrowers. Be your brother’s keepers.

## Seek legal advice and redress
Consult legal advice to understand your rights as a borrower***; this can help you build a solid case of slander against the unethical lender. Even if the lender repents, your reputation has already been tarnished, and slander can negatively impact various aspects of your life.

While lenders have the right to report defaulters to credit bureaus, slanderous actions are not legal. Upholding legal and ethical standards in debt collection is very important, if at any time you feel violated by a lender’s actions don’t hesitate to follow the steps above and see redress.

As always, you’re safe with Irorun as your ethical lender. Send us a message now at support@irorun.com and let’s get you started with the right loan.

Is it legal for lenders to slander loan defaulters

Data being misused, misconstrued or mishandled often causes a jump scare and a few nightmares to anyone on the receiving end. As a result, most people often find themselves struggling with concerns regarding the accuracy and security of their data.

For example, many returning borrowers fear that there may be inaccuracies in their credit reports or that lenders may have reported inaccuracies to the credit bureaus. All of which could negatively impact their credit scores and overall creditworthiness

Some borrowers believe that the first time they borrow would be the last and so begin the search for a means to erase their data from the credit bureau’s database.

Unfortunately, complete erasure is just not possible. However, there are means made possible for borrowers to make alterations or modifications to certain aspects of their data.

And today, we’ll be teaching you how to go about modifying your information with credit bureaus.

## Confirm information correctness
First, you begin the modification process by reviewing your credit report from all three credit bureaus, it’s also advisable to get trusted individuals to help with the review.

Take the time to look over each entry, and pay close attention to personal information, account details, and any reported defaults. While simultaneously verifying whether the information accurately reflects your financial history.

If any discrepancies or inaccuracies are identified, you must gather supporting documentation to show as evidence to back your claims. This may include bank statements, payment records, or other relevant pieces of information.

## Dispute discrepancies
As part of the process, you have the right to challenge any information on your credit report that you perceive as inaccurate. This also includes any information that has become obsolete or irrelevant within the credit system.

After spotting discrepancies in the credit report, take immediate action to dispute the items with the respective credit bureau. This involves submitting a clear and concise statement detailing the specific inaccuracies or outdated information, along with any supporting document you may have. The credit bureau is then obligated to investigate your dispute and either verify, correct or remove the disputed information within a reasonable time frame.

Clear all pending debts and close unused accounts
When working to modify data with credit bureaus, you must be on your best financial behavior, and make a concerted effort to manage your financial profile by clearing all pending debts and closing unused accounts. This move reflects financial responsibility.

You can start by assessing your outstanding loans and prioritizing repayment based on interest rates.

At the same time, closing any unused accounts helps simplify your financial portfolio. When one closes dormant accounts no longer required, they present a more focused and controlled credit profile.

## Mend broken fences
Reach out to past lenders who’ve previously reported negatively to the bureaus and see if a resolution can be met. Lenders are obligated to report any default or issues with a borrower to the credit bureau. However, there’s no rule that says the reports cannot be cleared if the issue between lender and borrower is resolved.

Resolving issues with lenders and ‘mending broken fences’ helps when you try to modify data with the credit bureau. It shows trustworthiness and integrity on your part. It also further improves the look of your credit profile.

## Cease data sharing with third parties
Some shady lenders occasionally spam borrowers with unending calls and SMS messages in a bid to market their services. To curb a possible repeat, one has to first; properly vet who they choose to borrow from. Read more on how to spot responsible lenders. Secondly, put in a polite request with lenders you’ve transacted with to refrain from uncontrolled data sharing with third parties.

As always, we hope you’ve learnt a thing or two about how you can modify your credit profile with the three credit bureaus. Send us a message at support@irorun.com and let’s get you a loan from a reputable and ethical lender.

Can my details be modified or erased from the credit bureaus?

Some months back, we broke down in bits all the nitty gritty details of the newly signed student loan act. We helped you fully understand just what the government had put into law and what it meant for Nigerian students. Today, we bring you an update as to when the official commencement of this act will take place.

## Here’s a brief recap on the student loan act 
President Bola Ahmed Tinubu signed the Access to Higher Education Act 2023 into law on Monday, June 12, which was a significant decision. He fulfilled his promise by starting a test student loan program. The program aims to help more people access education, regardless of their background.

The “Student Loan Act” aims to provide Nigerian students in college with interest-free loans. Additionally, the Act establishes an Education Loan Fund, designed to assist Nigerians in funding their higher education interests.

On June 14, 2023, the government promised to prepare for the student loan program to start between September and October 2023. Since the announcement, there has been no updates or progress on the scheme.

Of course, we know the government has been working tirelessly to see this bill come into play. Good things take time after all. 

Many people may have expected the delay in commencement, but the recent tuition hikes at many higher institutions were unexpected. Students and parents from the affected higher institutions have expressed worry and anxiety as the combination of increased tuition costs and the postponed introduction of the loan program has created financial instability amongst many. Coupled with the many other hikes in various spheres of the Nation.

## Here comes the good news  
Many Nigerians are skeptical about the bill’s implementation, given the government’s history of poor follow-through. This skepticism is understandable. President Tinubu announced that the government will start giving student loans to Nigerians in January 2024.

At a summit in Abuja, the President announced plans to expand the student loan program to help Nigerians, easing their difficulties and reaffirming his commitment to this goal.

David Adejo, the Permanent Secretary of the Federal Ministry of Education, confirmed that the Nigerian government will begin offering student loans in the 2023/2024 school year. This announcement was made during a meeting with the House of Representatives Committee on Student Loans.

However, he dismissed rumors that federal universities have increased fees following the enactment of the Students Loan Act. We beg to differ. 

As we await more action and less talking from the Government, we keep our fingers crossed and hope the implementation is more effective than we expect.

Now, fellow Nigerians, the ball is in your court. Share your thoughts on the latest update, we’d love to know what you think about the student loan act. Do we just stick to fast loan apps for educational loans or consider the Government’s new initiative. Send us a message now at support@irorun.com.

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