Instant loans

How do they work?

Using the latest generation of instant loans online is usually simplicity itself.

You go to the provider’s site and answer some basic questions about how much you want to borrow and over what period of time.

You will also have to give some basic information about yourself, including things such as your employment status, income and where you live.

Behind the scenes, instant loans direct lenders will be looking at the information and making a fast decision. In some cases, you may receive your instant loan approval in just a few minutes.

The money could be in your bank account within a few minutes or an hour or so after that.

You then repay the amount you have borrowed, including interest and any charges, in line with the schedule you agreed with your application.

Will I be subject to a credit history check?

Typically, yes, you will.

That’s partly because any responsible provider of instant loans will be complying with the legal requirement for them to check that their customers can realistically afford the sums they are borrowing. That is to protect your interests.

However, it may be possible to gain a decision in principle without a full credit history check, by using a no credit check instant loans service such as Instant Lolly.

That might be useful because every time a full credit history check is performed and the application subsequently refused, that fact itself is recorded on your credit history file, which could make getting credit even harder.

Will credit history problems stop me getting a loan?

No, not necessarily.

For instant loans, UK providers are required to take certain steps, but remember that very large numbers of people have credit history problems noted on their files. It is not unusual.

As a result, instant loans for bad credit may be available.

Of course, you must be realistic. Typically:

• if your credit history is particularly bad, it may affect the maximum amount you can borrow and potentially the interest rate you will need to pay for it;
• lenders will always reserve the right to refuse an application in cases where the credit history is interpreted to constitute an unacceptable risk for them.

How much can I borrow?

Providers will typically be as flexible as they possibly can, though they are obliged to be sensible.

Broadly speaking, they will use your request plus possibly some idea of your income and credit history, in order to decide upon a figure that is reasonable.

In most cases, that’s typically somewhere between £100–£3,000.

How long can I repay over?

Periods typically run from 1 to 24 months.

What can I spend the money on?

In most cases, anything you choose.

What is the difference between instant and payday loans?

Today, there is very little real difference.

At one time, payday loans were usually advanced on the basis that the sum was repaid, in full, on your next or perhaps next-but-one payday.

That repayment system has now become far more flexible and can be extended over up to 2 years.