Understanding Instant Loans
Did an unexpected bill just land on your doormat?
Maybe you’ve got a sudden but urgent home repair that you need to deal with, or perhaps your car broke down in the middle of the road, yet again.
Life is an unpredictable thing, and it’s full of expenses that we don’t always have the money to deal with on our own. In an ideal world, we would all have emergency funds that we could tap into when things went wrong, ensuring that we never have to break into our savings to access extra cash. However, in today’s economy, it’s much more likely that you’ll find yourself in a position once or twice in life where you need money and you have nowhere to turn.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Instant loans, or quick loans were previously considered to be something of a last option for many consumers in the UK. However, now that there’s more regulation in the bad credit loan industry, and a better range of options to choose from thanks to brokers like Boutell, fast loans are becoming a popular way to get access to funds when you need to deal with an emergency.
Here’s your guide to the truth about immediate loans.
What is an Instant Loan?
Whether you call it a quick loan, a payday loan, or an instant loan, it’s all the same thing – a quick and easy way to access credit when you need it most. This kind of lending is reserved for applicants who need to access money sooner rather than later. In many situations, the standard loan application process takes a lot of time and energy. You need to go and make an appointment with your bank, fill out various application forms, and then wait what feels like forever for someone to approve you.
If you don’t have the best credit score, you might find that your standard loan is even harder to get hold of, because you have to start applying with specialist lenders instead. However, quick loans allow consumers to avoid all the headaches associated with applying for a standard loan, so that they can get the money that they need as fast as possible.
These fast-paced loans are intended for people to use when they have an emergency situation to deal with, and they need only a small amount of cash to overcome the issue. Instant lending isn’t intended for long-term loans that require months of regular repayments. If you borrow money instantly, you should expect to pay it back by the time you have your next set of wages.
Though it can take a couple of hours to get your money into your bank account, quick loans have earned their name because the application process, repayment period, and approval time are all a lot lower than that of the typical loan application. Candidates will usually get the funds that they ask for by the end of the day. In some cases, you may have to wait 24 hours, but you will know whether you have been successfully approved for the loan in a matter of hours.
Why Do People Apply for This Kind of Loan?
So why would you bother with a quick loan when you could just get a personal loan or look into more traditional forms of lending give you more time to pay back what you owe? There are many reasons. The most common is that instant lending gives you the option to get the money you need as quickly as possible, without the fuss and hassle. When you’re dealing with an emergency situation, there’s nothing quicker than this kind of fast-paced loan.
Another major benefit of these quick-paced loans is that they’re very easy to apply for. Just like with any other kind of loan, you’ll need to fill out an application form, but the number of questions that you need to answer is usually minimal. Cash advance loan providers don’t need you to go through a process where you’ll have to explain why you’re borrowing money or ask for approval for every penny. Instead, they just want to know that you’re in a safe position so that you can borrow and pay back the money.
If your affordability check comes back and the loan providers know that you have a regular income that you can use to pay back what you borrow, then you should be fine to continue with your loan, even if you don’t have great credit. That takes us to another major benefit of quick loans – you can get the money you need instantly, even if you don’t have the best background with your credit score.
Just keep in mind that you will need to go through a credit check to be approved for your loan. While fast loan for bad credit providers don’t mind looking beyond your credit score to see whether you should be eligible to borrow money, they are still required by the FCA to check your credit.
The good news?
If you work with a broker like Boutell, you can reduce the potential impact on your credit rating that comes with trying to find the best deal on your loan. We present your loan requirements to companies who will only ever conduct a soft credit check at first. This means that no marks are left on your file. Only once you’ve got all the information you need about a lender and the kind of loan that they can offer you will you need to be subjected to a hard credit pull.
What to Know Before you Apply
Before you apply for any kind of loan, it’s a good idea to do your research and make sure that you understand what you’re getting into. Ultimately, applying for a short-term loan is often a very straightforward experience, as all you need to do is prove that you have a regular source of income from a job that you’ve been in for a while. A source of steady employment is often an important factor that lenders consider for payday loans.
Additionally, you’ll need to be able to show evidence that you’re over the age of 18, and that you are a resident of the UK. This will mean that you can legally apply for a loan in the UK under the regulations of the FCA (Financial Conduct Authority).
Another thing to keep in mind before you start applying for a loan with a fast provider, is that the kind of money you can borrow, and the extent of your loan will differ based on who you apply with. Different lenders can offer different amounts of money, but you will often find that most providers won’t be willing to offer more than a couple of thousand pounds to someone in search of a short-term loan. It’s best to double check how much you can get from each lender before you agree to carry on with your loan.
The most important thing to remember about instant lending?
Paying back your money is a process that’s often just as quick as getting it in the first place. The whole point of a quick loan is that you pay back what you owe automatically as soon as you get your next paycheck. This means that you can get yourself out of debt as quickly as possible, and you don’t have to panic about adjusting your budget to fit around a new series of repayments.
While some people find the concept of having to pay back everything that they owe on a loan in less than a month a little daunting, it can be very freeing for other lenders. The fact that you only have debt to worry about for a month or less takes some stress off your shoulders. Additionally, there’s a lot less of a chance that something might go wrong in your personal life that makes it difficult to pay back what you owe if you’re getting rid of your loan all at once.
How Quickly Can You Get Instant Money?
Speed is everything in a financial emergency. When you’re broken down on the side of the road, or your house is freezing in the winter because you can’t get your boiler to work, you can’t afford to wait days for someone to approve an application or wait weeks for your next payday to arrive. That’s why the short-term loan industry has grown so big, so fast.
Short-term personal loans will give you the money that you need as quickly as possible, so you can get on with your life and overcome any emergencies that might come your way. The speed with which you get your money will depend on a number of things, including whether you filled your form out correctly, and the day and time that you apply for your instant cash. However, the majority of lenders will aim to get you the money you need within 24 hours or less.
Quick lenders can even give you approval and get your money into your bank account within a couple of hours in some cases – it all depends on the lender.