
What the term ‘Fast Loans’ means
Loan providers use the term ‘fast loans’ to describe the service they provide. The term refers to the streamlined application process, decision-making, and the fund disbursement. Some lenders can get money to you the same day as your loan approval.
The key difference with fast loans is the speed of the process. Traditional loans can take up to a week to consider an application, then longer to disburse the funds. Despite fast loans being a niche product, the speedy service is available among a wide range of loans.
The Types of Products that Could be Described as ‘Fast Loans”…
- Payday loans
Payday loans are short-term loans meant to cover expenses until your next paycheck. They usually have high fees and interest rates, and people must repay them quickly, often within a few weeks. These loans are easy to get, but if not paid back on time, they can lead to more debt.
- Personal loans
Personal loans are a type of loan you can use for almost any purpose, like paying off debt, covering big expenses, or buying goods and spreading the cost. They usually have fixed interest rates and monthly payments over a set period. You borrow a lump sum and repay it in installments, typically without needing to offer collateral.
- Credit card cash advances
Credit card cash advances let you borrow cash from your credit card, using an ATM or bank. The amount is added to your card balance, but interest rates are usually higher, and fees apply right away. It’s a fast way to get cash, but the costs can add up quickly if not repaid soon.
- Pawnshop loans
Pawnshop loans are loans where you give a valuable item, like jewelry or electronics, as collateral. The pawnshop gives you cash based on a percentage of the item’s value. If you repay the loan within the agreed time, you get your item back. If not, the pawnshop keeps and sells the item to cover the loan. These loans don’t require a credit check, but interest rates can be high.
- Guarantor loans
A guarantor loan is a type of loan where someone helps you borrow money by promising to pay it back if you can’t. This person, called a guarantor, is usually a family member or close friend. The lender will look at the guarantor’s financial situation to decide if they will give you the loan. If you don’t make your payments, the guarantor has to cover them. It’s a way to get a loan when you might not qualify on your own.
- Salary Advance Schemes
A salary advance scheme lets you get a part of your salary before your usual payday. Instead of waiting for your regular paycheck, you can access some of your earned money early. You usually need to pay it back by your next payday, and sometimes there might be a small fee or interest. It’s useful for covering unexpected expenses without waiting for your full salary.
- Online instalment loans
Online installment loans are loans you can apply for and manage entirely over the internet. You borrow a certain amount of money and agree to pay it back in regular, equal payments over a set period. Each payment includes part of the loan and some interest. These loans are convenient. You can handle everything online. But, make sure you can afford the monthly payments before you borrow.
Criteria for Getting Loans Fast
- The Credit Check Requirements
When you apply for a loan, lenders will often start by checking your credit. They use a process called a “soft search” or “soft check” to do this. A soft search is a way for lenders to see your credit history without affecting your credit score. This means that even if you check your eligibility for multiple loans, they won’t impair your credit rating. Hard searches may be run when you decide to apply for a loan. Not check if you’re eligible.
- Employment status
Lenders also look at your job situation when you apply for a loan. They want to see if you have a stable job, ideally in a long-term, permanent position. This shows that you have a steady income and are more likely to be able to repay the loan over time. If you have been with your employer for a while, it can give lenders confidence that you will continue to earn money and meet your loan repayments. This helps them decide if you can reliably repay for the duraution of the loan term.
- Income verification
To make sure you can repay the loan, lenders usually need to verify your income. If you have a regular job, they will ask for recent payslips to see how much you earn. If you are self-employed, they might ask for tax returns or other documents that show your earnings. This helps lenders check that you have enough money coming in to cover the loan repayments each month. Providing this information is important because it shows that you are financially stable and can handle the loan.
- Age requirement
Age requirements for loan applications vary by lender: most require you to be at least 18, while others may set the minimum age at 21 or even 25.
- Collateral for getting secured loans fast
For secured loans, like pawnbroker or logbook loans, you need to offer something valuable as collateral. This means you use an item you own to back up the loan. The item must be worth more than the amount you want to borrow. For example, you can’t use a £100 air fryer to get a £500 loan because the value of the air fryer is too low. Lenders need to make sure that the collateral is worth enough to cover the loan plus interest if you can’t repay it.
How to Apply for Fast Loans Successfully
- Researching lenders
When looking for a loan, start by checking each lender’s minimum loan amount. Make sure they can lend you only what you need to avoid paying extra in interest. Also, review the lender’s eligibility requirements. If you have a poor credit history or other issues, find a lender whose criteria match your credit profile. This way, you’ll have a better chance of getting approved and avoid borrowing more than necessary.
- Completing the application form accurately
To submit an accurate loan application, make sure you check for spelling errors and correct any mistakes. Double-check that all the information you provide is accurate and complete. You might need to fill out an income and expenditure form, so have your financial details ready before you start. This will help ensure your application is clear and correct, giving you a better chance of approval.
- Submit the required documents
For a smooth loan application, you’ll need to provide certain documents. These may include a photo ID, like a driver’s license or passport, and proof of address, such as a recent utility bill. You might also need a recent bank statement and payslips to show your income. If you receive benefits, include proof of those as well. If you’re self-employed, you may need to provide a tax return to verify your income. Having these documents ready will help your application go smoothly.
- Wait for approval
You won’t have to wait long for a loan decision. Some lenders can decide in under an hour, and you might get same-day funding. It’s best to wait for a decision before applying with another lender. Particularly if you’re running eligibility checks with several lenders. They may pre-approve and then do a hard check on your credit report. Too many hard hits in a short space of time hurts your credit score, making harder to be approved with the next lender you apply to.
- Receiving funds
Same-day loans often have a deadline for approval, so make sure to apply on time. Quick loans might take up to 48 hours, while regular loans usually take 2 to 5 business days to reach your bank account. Fast loans are funded quickly by bank transfer, so you’ll need a current account to receive the money. Keep these timeframes in mind when planning your application.
FAQs
- What is the easiest loan to get immediately?
A guarantor loan is the easiest and quickest to get. It helps to have someone with a steady job and a good credit score to back you up.
- Will I need a credit check for a quick loan?
Lenders may do a credit check for a quick loan. However, subprime lenders often use a soft search initially, to review your application. a hard search will be conducted before payout.
- Can I apply for fast loans on my mobile?
Yes, you can apply for fast loans on your smartphone. It helps to have a good Wi-Fi connection and a clean camera lens for scanning and uploading documents.