Warning: Late repayment can cause you serious money problems. For help visit moneyhelper.org.uk/enWe are a broker and not a lender. We don’t make lending decisions.  

Quick Loans

  • When unexpected expenses strike, quick loans can help
  • Soft search technology protects your credit score
  • Loans start from £100 letting you borrow only what you need
  • Fast funding process could get money in your bank on the same day

Understanding Quick Loans

Quick loans are designed to provide immediate financial assistance.

Applications can be approved and funds disbursed within 24 to 48 hours, making them ideal for emergency situations.

The Concept of Quick Loans

Quick loans, also known as fast credit or cash loans, are for when you need money within a day or two.

Traditional lenders run more thorough credit checks, and take longer to put money in your bank.

Quick loans are for when you don’t have weeks to wait!

Benefits of Quick Loans

  • Same day funding can help you pay for emergency bills. Dental bills, car repairs, or to pay for an essential home repair.
  • The primary benefit is same or next-day funding.
  • Lenders providing quick loans have streamlined application processes. It is almost always digital because technology speeds the process along.
  • Minimal documentation is required to keep the process fast.

Risks Associated with Quick Loans

  • Interest rates are higher because loan amounts are lower
  • There is a potential to fall into a cycle of debt if you begin to miss repayments or re-borrow to repay an existing loan
  • Penalties and interest fees can make it longer to repay

How Quick Loans Work

Quick loans operate on a straightforward principle: providing immediate funds with a fast approval process.

The Process of Applying for fast loans

  1. Use an eligibility checker to see what lenders could provide you with quick loans
  2. Review eligibility requirements, interest rates, and repayment terms
  3. Check the Key Facts Illustration for your personalised loan offer, and if you’re happy, accept the terms
  4. The lender transfers the loan amount to your bank account

Know the Interest Rates and Repayment Terms

Interest rates are expressed as an annual percentage rate (APR).

A representative APR is not necessarily what you’ll be offered. It’s used to illustrate what most customers are offered.

Your rate will be personalised based on the information on your credit report.

A low credit score raises interest rates. A good credit score gets rewarded with lower interest rates.

  • Repayment terms

Repayment terms on quick loans can be one-month to 12-month loans. Payday loans need to be repaid sooner.

Short-term loans can be spread over more monthly instalments. Interest rates accrue daily at a maximum rate of 0.8%.

The sooner you repay the loan, the cheaper the cost of borrowing.

  • Early Repayment Options

Different types of loans have different repayment terms. A payday loan won’t incur early repayment charges because they’re intended to be repaid from your next wage.

Short-term loans with less than 12 months left can have an early repayment charge of up to 0.5% of the total loan amount.

Quick Loan Approval and Disbursement Process

Lenders providing quick loans have fast decision processes. Check the key terms for each lender you’re considering as some are faster than others.

Some may advertise quick loans, but, mean it’s a fast application process. You’ll know the same day if you’d be approved or not.

Specialist lenders with streamlined processes can provide fast decisions, and have the money in your bank the same day, or within 48 hours of approval.

Despite the fast process, take your time to review the loan agreement. Before you take the loan, you’ll want to check that you understand what you’re agreeing to.

Only agree to take a loan from an authorised lender that’s registered with the FCA. That way, you’ll benefit from the 14-day cooling-off period.

If you change your mind, you have 14 days to exit the loan agreement without penalty.

The Various Types of Quick Loans

Payday Loans

These are designed to be repaid in a single instalment. But, many lenders let you spread the cost over 2 to 3 months.

Personal Loans

Personal loans can be secured or unsecured. Secured loans require collateral, such as a logbook loan that uses your vehicle as security. Unsecured loans are faster to process because no items need to be valued.

Guarantor Loans

Guarantor loans are suited to those with very bad credit as they can use a co-signer with a good credit score to have a better chance of getting the loan approved. (Affordability checks may apply).

Eligibility Criteria for Quick Loans

Each lender has specific eligibility criteria for customers they’ll lend to. Most require applicants to be:

  • At least 18 years old. Some can be 21+ or older.
  • Meet a minimum income threshold (such as £14,750 per year).
  • No recent negative markers (within the last 3 to 6 months) on credit reports
    • (Some lenders can arrange fast loans for people with bad credit)

Applying for a Quick Loan

Applying for a quick loan involves several steps, from researching lenders to submitting verification documents.

  • Research Lenders to Know What’s Available

Compare multiple lenders. Look at the eligibility criteria, the representative APR, and repayment options, and the key terms.

Go through the application process carefully:

  • Fill out the application accurately and double-check for spelling errors.
  • Have the following documents handy to speed the loan application process along
    • A digital copy of your photo ID (Driving licence or passport)
    • A recent bank statement dated within the last 3 to 6 months
    • Recent payslips
    • A recent utility bill with your name and address (used to verify you live at the address you use).

Be prepared to provide information about your monthly expenses. Lenders may perform an affordability assessment.

Avoid Unnecessary Fees and Charges

As quick loans attract higher interest rates, it’s advisable to budget for the monthly repayments. Missing payments or paying late can result in penalties.

A late penalty can add up to £15 to the total cost, each time it happens. And, it can hurt your credit score too, making it harder to get a loan approved in the future.

Check for any service fees that may be incurred, too.

If you apply through a credit broker, they may have an administration fee or processing fee to pay. Some may have arrangements with lenders; others may send you an invoice for the broker fee.

If you intend to repay a loan early, ask for a settlement figure first. Without asking, you could inadvertently pay interest you don’t need to.

Tips for Getting Easy Loans with Bad Credit

If you have bad credit, there are still options available to secure a quick loan.

  • Target your applications to subprime lenders

Subprime lenders specialise in lending to people with poor credit scores.

  • Consider bad credit loan direct lenders

Direct lenders cut out the middlemen. Instead of applying through a third party, your application goes straight to the source of funding. You may get better deals from specialist lenders directly.

  • Check your credit reports for the dates of entries

Entries on your credit report drop after 6 years. If you have a CCJ that’s 5-years and 6-months old, you’ll get better deals when it’s gone. Remember the rule of only borrowing what you need, particularly when you have bad credit.

Frequently Asked Questions

How fast are quick loans?

You could get same day loans by applying early in the day. Many lenders aim to get funds into your bank within 48 hours of approval.

Can I repay my loan early?

Yes, most quick loan providers allow you to repay your loan early without any penalties.

Can I apply for a quick loan with bad credit?

Yes. Lenders look at your credit history, and many may look past entries older than 1-year old.

Are cash loans expensive?

Interest rates are capped at a maximum of 0.8% daily. For example, a £100 loan would cost 80p per day or £24 repaid on the 30th day. This is for interest only and excludes additional charges that may be applied, such as late payment penalties.

Are quick loans more expensive than regular loans?

Quick loans can feel more expensive than traditional loans. However, that’s because they are not designed for long-term borrowing. They should be used for emergency borrowing in the short-term and repaid as soon as possible to lower the cost of borrowing.

Share the Post:

Related Posts

Online Loans

Online loans have become a popular choice for borrowing money due to their convenience and speed. These loans allow you

Urgent Loans

Sometimes, unexpected financial emergencies arise, requiring immediate access to cash. At times like this many search Google for the term