- Same day loans help in financial emergencies
- Lenders offer a fast decision process
- And can get funds in your bank account within hours of an application approval!
Understanding Same Day Loans
Same day loans cater to your urgent needs. When every minute matters.
What are Same Day Loans Suitable for?
Same day loans, also known as, emergency loans, and quick loans, provide instant cash to your bank account.
Because of the fast loan processing times, they’re suited to raising cash to pay bills that you don’t have cash in bank to pay.
Same day loans are a solution to unforeseen expenses. Examples include:
- Emergency dental bills that aren’t covered by the NHS,
- Essential home repairs,
- Car repairs,
- Meeting travel costs to get to and from work until your wages get paid,
- Paying the excess on an insurance claim.
Traditional loans can take weeks to process, then take 2 to 5 days for the money to hit your bank account.
When you have things to pay that can’t wait weeks, same day loans can help.
How Same Day Loans Work
Lenders providing same day loans have streamlined processes. Most are online because that is the fastest way to assess loan applications.
- Less documentation may be required to speed up processes. The essential documents verify ID, income, and UK residency.
- Decisions may be based on alternative credit scoring, such as soft check only.
- Advanced algorithms can let you know in minutes if you could be approved.
- Same day loan companies use faster payment transfers.
To receive the money the same day, loans need to be approved before a deadline, such as 3:30 pm. Some lenders offer same day decisions only, with the money taking up to 48 hours to reach your bank.
Eligibility Criteria for Same Day Loans
Age Requirements
The minimum age is 18. Some loan companies specify age requirements of 21+ or 25+. Check the criteria before applying.
Income Criteria
Most lenders will stipulate the following:
- Regular and stable earnings
- Minimum threshold may be £700+
- Same day loans for self-employed people may require a specialist lender.
Credit Scores and Credit Checks
Credit scores are indicative only!
Decisions are based on the credit history information on your credit report.
Same day bad credit loans are available from subprime lenders. These firms use alternative credit scoring methods. They accept applications with CCJs, old bankruptcies, and similar negative markers.
Required Documents for a Same Day Loan Application
- Driving licence or passport
- Wage slips, tax returns, or proof of benefit letters
- Recent bank statement
You may be asked about your monthly expenses when applying for the loan. This is to ensure you can afford the monthly repayments.
Your bank statements are evidence of income and expenses. Be truthful when answering questions to avoid delays or loan rejections.
Direct Lenders for Same Day Loans
Direct lenders can offer more flexible lending options. They’re not bound by external loan underwriters dictating the risks they can accept.
For bad credit loans, direct lenders with a same-day loan service may have a higher approval rate.
The advantage of a direct lender is that you’re applying to the funding source. Not an intermediary. As such, the rates may be cheaper and the terms clearer.
Credit Brokers
Credit broker firms work with a panel of lenders, some of which may include direct lenders. The advantage of a broker with a panel of lenders is a better market comparison. They can help identify cheaper rates, broader eligibility, and flexible borrowing options.
Verifying the legitimacy of any UK lender
Check for FCA (Financial Conduct Authority) registration and accreditation. Look for transparent contact information and physical addresses.
Avoid lenders with unclear or vague terms. Legitimate lenders will be transparent about their terms, fees, and conditions.
Bad Credit and Same Day Loans
Having bad credit doesn’t mean you can’t get a same day loan. Options exist. They may have higher costs and stricter terms.
How Bad Credit Affects Loan Approval
Bad credit can result in higher interest rates and may limit your loan options.
Some lenders may decline your application due to your credit score. Others may offer smaller amounts like £100 loans to borrowers with bad credit.
Knowing how your credit score affects loan approval can help you. It can set realistic expectations and guide your loan search.
Options for People with Bad Credit
Some lenders specialise in bad credit loans. They help those with poor credit.
Guarantor loans, where someone else guarantees your loan, can increase your approval chances. Secured loans, which require collateral, may offer better terms to those with a poor credit history.
Research lenders that cater to low credit scores to find the best options available.
Fees and Charges Associated with Same Day Loans
Interest Rates
Interest rates vary between lenders. They’re expressed as an APR (annual percentage rate) but charged at a daily rate. The maximum that can be charged is 0.8% daily for High-Cost-Short-Term-Credit (HCSTC).
Processing Fees
Some loan services may have fees for processing the application. Genuine firms may require a service fee with no guarantee of a loan approval. To avoid loan fee fraud, only apply through FCA-authorised credit brokers.
Late Payment Penalties
Lenders have late payment policies. They state the fees they charge for missing a payment due date. The maximum is £15 per late payment. This is usually due on top of your next instalment payment.
A late payment can be added to your credit report, which can lower your credit score.
Frequently Asked Questions
How can I borrow money instantly?
Prepare all documents before starting an online same-day loan application. If you have bad credit, apply to a specialist lender that caters to poor credit scores.
Can I borrow money for a day?
Emergency loans or payday loans can be repaid early, without penalty. An early repayment charge (ERC) may be applied to short-term loans.
Are same day loans the same as payday loans?
Payday loans are short term personal loans for lower amounts of up to £1,000. Same day loans can be for higher amounts with repayments spread over a longer period.