Instant Loans

Need money fast? Instant loans pay out money within minutes of being approved.

What is an instant loan?

Instant cash loans are short-term online loans. They’re typically for emergency situations where you need quick cash - for example, if your car breaks down or you’re hit with an urgent bill.

Instant cash loans are small loans, starting from as little as £50, which you repay over several weeks or months. Generally, they’re easy to get and can help you through temporary cashflow problems. But these loans are expensive compared to other forms of borrowing.

Can I get money instantly?

Instant loans are a type of same-day loan. The online application and approval process is designed to be quick. Lenders use technology to help them make lending decisions in minutes. Once approved for an online instant loan, you can usually expect the money to land in your bank account within 10-15 minutes.

How much do instant loans cost?

Instant loans are expensive. But there are rules which limit the amount you can be charged. Interest and fees are capped by law at 0.8% per day of the amount borrowed. If you miss a payment, you can’t be charged a fee of more than £15. And there is a total cost cap which means you must never pay more in fees and interest than 100% of the amount you borrowed. So, if you borrow £100, the most you’ll have to pay back is £200.

When is it best to take out an instant loan?

A quick loan can be useful to get you through a short-term financial crisis. But their high interest rates mean they should only be used as a last resort.

Before applying for a loan, ask yourself:

• Are there alternatives? Could you borrow more cheaply with a credit card or arranged overdraft? Do you have savings, or could you borrow from family or friends?
• Can I afford this? Make sure you have enough money to repay on time and still pay your other important bills, such as your rent or mortgage. If you miss a repayment, you’ll incur fees and damage your credit record, making it difficult to borrow in the future.
• Is this spending essential? The high interest rates mean instant loans are not suitable for buying luxuries or non-essential items.
• Is my borrowing out of control? If you’re already struggling with debt, adding an instant loan is unlikely to be a good idea. Instead, seek debt advice help.

What are the requirements for an instant loan?

You must typically:

• be over 18
• live in the UK
• have a regular income
• have a UK bank account

Lenders will also carry out a credit check and must ensure you can afford the loan before lending to you.

Can Experian help with an instant loan approval?

You can check your chances of approval for instant loans when you compare them with Experian. It’s free, and it won’t affect your credit score unless you apply.

What precautions should I take when taking out an instant loan?

If you decide to take out an instant loan with a lender, you should:

• Check they’re a legitimate lender. Make sure the lender is approved by the financial regulator - the Financial Conduct Authority (FCA). Find the firm’s FCA authorisation number on their website and check this against the FCA register. Approved firms must follow rules that protect their customers.

• Check you can afford the repayments. If you miss a repayment, you may have to pay a default fee (up to £15) plus interest. Your credit record will also be negatively impacted, making it harder to get credit in the future.

What are the advantages and disadvantages of instant loans?

Advantages:

• The application process is quick and easy
• The money is paid to you usually within 10-15 minutes of approval
• You can choose from a range of repayment terms
• You may still qualify even with a poor credit score

Disadvantages:

• These loans are expensive compared to other forms of borrowing
• If you miss a payment, your credit score will be damaged
• Late repayment can cause serious money problems
• There may be fees to pay – check before signing

What can I use an instant loan for?

You can use an instant loan for anything but, as they’re so expensive, reserve them for essential spending.

How much can I borrow with an instant loan?

This varies but the amounts are small compared to standard personal loans. The minimum loan typically starts at around £50 and goes up to a few hundred pounds for new customers. Existing customers are usually able to borrow more.

Can I get an instant loan with bad credit and no guarantor?

You don’t need a guarantor for an instant loan and you may be approved even if you have a history of bad credit. If the lender is satisfied you can afford the monthly repayments and that your financial issues are in the past, they may still lend to you.

What credit score do I need for an instant loan?

Your credit score is just one factor that lenders use when deciding whether to give you instant cash. They’ll also consider your financial circumstances and their own lending criteria. So, even if you have a low credit score, you may still be approved for this type of loan.

If you want to improve your chances of being accepted, you can take some simple steps to improve your credit score.

Do instant loans come with a fee?

Many of the companies offering quick loans online are credit brokers. These companies search the market to find lenders that are happy to lend you instant money. Sometimes they’re paid commission by lenders but sometimes they’ll charge you a fee. Some lenders also charge fees themselves.

Are instant loans the same as payday loans?

Instant loans and payday loans are both high-cost, short-term loans. The main difference is that you must usually repay a payday loan within a month whereas instant loans let you spread the repayments over several months.

Can I get instant loans with a low APR?

You won’t find instant loans with low interest rates. But if your credit score is good, you may qualify for low-interest loans or be able to borrow interest-free with a 0% balance transfer, purchase or money transfer credit card.