Instant decision loans can be a lifeline in the event that you want to borrow money fast. Years ago instant loans were just a pipe dream, as the only way to seek a loan was to make an appointment with the manager of your bank and ask them for a loan. Things are a great deal different today thanks to technology.
Applying Online For a Fast Loan
The internet has changed the way that people live. What used to take a couple of weeks or more thanks to having to wait for the post, now takes just minutes in regards to loan applications.
It is easy to apply for a loan, all the information we need to get started is:
- Your age – you have to be 18 at least to apply;
- Your current address – you have to live in the UK;
- Your income and any outgoings each month;
- Your bank account information along with debit card information.
It will take just minutes to see if you can go ahead with the loan application, as we will match you with our panel of lenders. As we work with numerous lenders, there is more chance of our being able to match you to one from you making just one application. If all goes well, you could have the money paid into the bank on the same or the next day.
What types of Instant Decision Loans Are There?
There are several types of loans that come with an instant decision. People who have a good credit rating can gain access to more loan choices and lower APR than those with a poor credit rating.
Some loans are easier to get approval for than others are if your credit rating is not so good. These are generally small loans or short-term loans.
Payday and Short-term Loans – Easiest and Quickest for Approval and Pay-out
Payday loans are one of the quickest and easiest types of loan to get approval even if you have a bad credit rating. This is because the loan does not involve large sums of money and you will be paying the loan back quickly.
Loans such as these are generally given the term payday loans. The typical payday loan may offer between £100 and up to £500 with the loan repaid over one to two months.
Short-term loans are another loan that is easy to get approval for as it involves a relatively small cash sum, usually up to £1,000. The loan is generally repaid over several months, up to one year. The actual amount borrowed would depend upon the loan provider and the state of your credit rating.
Personal and Guarantor Loans
Personal and guarantor loans are two types of loan that allow people to borrow a larger sum of money and spread out the repayments over longer.
With personal and guarantor loans, it may be possible to borrow as much as £5,000 and repay the loan for up to 36 months. The length of the loan is something that needs giving a lot of thought. The longer it is taken over the less the monthly repayments will be but the more interest you will pay. A fine line needs to be drawn between the loan being affordable and not paying too much in interest.
With the guarantor loan, you are required to find a person over 18 years old with a good credit rating who will take over the loan repayments if you do not fulfill them.
Which Type Of Loan Might Be More Suitable?
As mentioned above there are numerous loan options available offered with an instant decision. What you have to do is choose which of the instant decision loans might be the most suitable for your circumstances.
Where A Payday Or Short-term Loan Might Be More Suited
If your circumstances require that you borrow a large sum of money, generally over £1,000, it would be no good applying for a payday loan or short-term loan. In this instance, you might be better off applying for either a personal loan or guarantor loan, depending on your credit rating.
If a one-off financial emergency crops up and you need to get hold of a relatively small sum of money, say between £100 and £1,000, a payday or short-term loan might fit your needs.
Payday loans paid back quickly, on time, within one to three months, are a great way to emerge from a financial hole and should be thought of as emergency loans. There are many reasons why you might have to take out a loan over the short-term.
Car Breakdown Repairs
For instance, your car might break down and you do not have money to spare until your next payday. In this instance, you could borrow the money needed, if approved it could be in the bank within hours, take your car to the garage and get it fixed.
Appliance Breakdown Repairs or Replacement
You might come home to find your freezer has broken down and hundreds of pounds of food is spoiling. You could call the repair person, get a quote, and find you cannot afford to have it fixed. If you do not get it fixed today, the food will spoil. You could apply for a small cash sum to pay for the repairs and then repay the loan on your next payday.
Pay Final Demand Bills
Another instance might be because you have forgotten about that large utility bill that arrived some weeks ago and the final payment demand has just dropped through the letterbox. It needs paying within days but payday is a long time away. Borrow the money to pay the bill off, clear it, and then repay the loan when you are paid.
The above are just three instances where emergency cash would come in very handy. With payday and short-term loans being easier to get approval for and quick to pay out, this is why they are called instant decision loans, you have the money in your bank account fast and can use it to meet the financial commitment.
Therefore, if you have any type of situation where you need to get hold of a small amount of money fast, a payday or short-term loan might be the most apt.
Where Personal Or Guarantor Instant Decision Loans Might Be Suitable
If you want to borrow a larger sum of money and spread the cost of the repayments back over a longer period it is no good applying for a payday or short-term loan. In this instance, you may be better off considering applying for a personal or guarantor loan.
Whether or not you can get approval for a personal loan, is going to depend on your credit rating. All UK lenders are going to check out your credit file, as they have to be able to make a rational choice as to whether you are going to be a big risk in repaying the loan. On saying this, it does not mean you are going to be instantly turned down because your credit rating is poor. This reflects the fact that the lenders we work with also base their decision on your current circumstances and ability to be able to repay the loan. To do this, they will work out what you have coming in each month and what your outgoings are.
In the event your credit rating is too poor to get approval for a personal loan, you might consider the guarantor loan. As mentioned above, you do need someone to stand as your guarantor and it is not always easy to ask someone. That person has to be someone close to you and this can put relationships or friendship at risk if you fail to repay the loan, as they will have to take the repayments over.
However, this is one viable option for taking out a loan if your credit rating is so poor that there are no other options.
Things to Consider When Applying For A Loan
Suffering a financial shortfall happens to almost everyone at some point in time and loans, whether they are payday, short-term, personal or guarantor loans, can work as they are intended to work if you go into them with your eyes open.
By this, we mean having given plenty of thought to the loan and repaying it before signing on the dotted line. Here are some of the things you might want to give some thought to before taking out a loan:
- Do you really need to borrow money – By this we mean are you borrowing money to cover an emergency or are you just borrowing because you want to buy an expensive dress or suit you saw? Only borrow money if you really need to;
- Take the APR of any loan into account – The APR is the annual percentage rate, which is the amount of interest that will go onto the loan. This is a sum of money you have to repay along with the amount borrowed;
- Is the loan affordable? – Always work out whether or not the loan is affordable. If you have any doubts regarding your ability to repay the loan then do not take it out;
- Consider any fees and charges – Always make sure you know about any fees or charges that go into the cost of the loan. For instance, there might be an early repayment fee. This fee would be charged if you took out a loan and wanted to repay it earlier than the agreed date.
The above are merely a few of the many things you should consider before signing on that dotted line for instant decision loans. Providing you borrow responsibly and repay the loan on time, a little helping hand on the odd occasion, by way of a loan, is good.
There are many choices for instant decision loans available and it is possible to borrow even if you have a poor credit rating. The lenders we work with consider your credit score and ability to be able to make the loan repayments. They offer affordable loans with competitive rates of interest.